Income Tax Calculator
TaxCalculate income tax for FY 2025-26 under old and new tax regimes. Includes 87A rebate, surcharge, cess, and deductions (80C, 80D, HRA). India income tax.
Tax Regime
New regime: only ₹75,000 standard deduction. Lower rates, fewer exemptions.
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DeductionsNot applicable in New Regime
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₹
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Total Tax Payable
₹0
● Tax 0.0%● Take-home 100.0%
Taxable Income
₹0
Effective Rate
0.00%
Monthly TDS
₹0
Annual Take-Home
₹0
Slab Breakdown (New Regime)
SlabRateTax
Up to ₹4L0%—
₹4L – ₹8L5%—
₹8L – ₹12L10%—
₹12L – ₹16L15%—
₹16L – ₹20L20%—
₹20L – ₹24L25%—
Above ₹24L30%—
Base Tax₹0
+ 4% health & education cess on base tax. Surcharge applies above ₹50L.
What is a Income Tax?
An Income Tax Calculator estimates your annual income tax liability in India based on your gross income, choice of tax regime, and eligible deductions. It applies the correct slab rates, Section 87A rebate, surcharge, and 4% Health and Education Cess to give you the total tax payable, effective tax rate, monthly TDS, and annual take-home income.
This calculator covers FY 2025-26 (AY 2026-27) tax slabs — the year of Budget 2025. Two regimes are available:
New Tax Regime (Default from FY 2023-24):
- No tax for taxable income up to ₹12,00,000 (via Section 87A rebate)
- Standard deduction: ₹75,000 for salaried employees
- Lower slab rates but no deductions (no 80C, 80D, HRA etc.)
Old Tax Regime:
- Standard deduction: ₹50,000
- Full deductions: 80C (₹1.5L), 80D, HRA, 80CCD(1B), home loan interest
- Higher base rates but significantly reduced taxable income for high-deduction taxpayers
For most salaried employees earning up to ₹12 lakh per year, the New Regime results in zero income tax — the most significant benefit of Budget 2025.
See the TDS Calculator for employer TDS deduction rates, and the GST Calculator for business tax calculations.
How to use this Income Tax calculator
- Enter your Annual Gross Income — your total annual income before any deductions (for salaried employees, this is your CTC's salary component, or your total compensation before tax).
- Select your Tax Regime — New (default) or Old. The new regime has zero tax for taxable income up to ₹12 lakh.
- If using the Old Regime, enter your deductions: 80C investments (max ₹1.5L), health insurance premium (80D, max ₹25K for self), HRA exemption (enter the exempted amount), and other deductions (NPS 80CCD(1B) max ₹50K, savings interest 80TTA max ₹10K, etc.).
- The Total Tax Payable is shown highlighted. Monthly TDS is Total Tax ÷ 12.
- The pie chart shows tax vs. take-home proportion at a glance.
- The Steps panel shows the slab breakdown, deductions applied, surcharge (if any), and cess calculation.
Formula & Methodology
New Regime (FY 2025-26):Taxable income = Gross income − ₹75,000 (standard deduction) Tax = slab calculation (see below) 87A rebate: if taxable ≤ ₹12L → tax = 0 Marginal relief: if taxable > ₹12L → tax = min(slab tax, taxable − ₹12L) Cess = (tax + surcharge) × 4% Total = tax + surcharge + cessNew Regime slabs: | Income range | Rate | |---|---| | 0 – ₹4,00,000 | 0% | | ₹4,00,001 – ₹8,00,000 | 5% | | ₹8,00,001 – ₹12,00,000 | 10% | | ₹12,00,001 – ₹16,00,000 | 15% | | ₹16,00,001 – ₹20,00,000 | 20% | | ₹20,00,001 – ₹24,00,000 | 25% | | Above ₹24,00,000 | 30% | Worked example — Salaried employee, ₹15,00,000 CTC, New Regime:Gross income = ₹15,00,000 Standard dedn. = ₹75,000 Taxable income = ₹14,25,000 Tax on ₹14,25,000: 0–4L: ₹0 4–8L: 5% × 4L = ₹20,000 8–12L: 10% × 4L = ₹40,000 12–14.25L: 15% × 2.25L = ₹33,750 Base tax = ₹93,750 No 87A (taxable > 12L), no surcharge (income < 50L) Cess = 4% × ₹93,750 = ₹3,750 Total tax = ₹97,500 Effective rate = ₹97,500 / ₹15,00,000 = 6.5% Monthly TDS = ₹97,500 / 12 = ₹8,125
Frequently Asked Questions
What are the income tax slabs for FY 2025-26 under the New Regime?
New Tax Regime slabs for FY 2025-26 (AY 2026-27) introduced in Budget 2025: ₹0–4,00,000 at 0%; ₹4,00,001–8,00,000 at 5%; ₹8,00,001–12,00,000 at 10%; ₹12,00,001–16,00,000 at 15%; ₹16,00,001–20,00,000 at 20%; ₹20,00,001–24,00,000 at 25%; above ₹24,00,000 at 30%. Section 87A rebate applies — no tax for taxable income up to ₹12,00,000. Standard deduction for salaried employees is ₹75,000.
What are the income tax slabs for FY 2025-26 under the Old Regime?
Old Tax Regime slabs for FY 2025-26 (unchanged for several years): ₹0–2,50,000 at 0%; ₹2,50,001–5,00,000 at 5%; ₹5,00,001–10,00,000 at 20%; above ₹10,00,000 at 30%. Standard deduction for salaried employees is ₹50,000. Section 87A rebate: no tax if taxable income is up to ₹5,00,000 (rebate up to ₹12,500). Deductions under 80C, 80D, HRA, and other sections are available.
Which regime is better — Old or New?
The New Regime is beneficial for those with fewer deductions or lower gross income. For income up to ₹12 lakh (taxable), the New Regime results in zero tax due to the 87A rebate. The Old Regime can be better at higher income levels if you have substantial deductions — 80C (₹1.5L), 80D (₹25K+), HRA, NPS 80CCD(1B) (₹50K), home loan interest (₹2L under 24b). At ₹15L income with ₹2.5L in deductions under Old Regime, compare both using this calculator to find your break-even.
What is the Section 87A rebate for FY 2025-26?
Section 87A provides a rebate to reduce tax liability to zero for eligible taxpayers. New Regime FY 2025-26: rebate up to ₹60,000 applies if net taxable income is ₹12,00,000 or less — effectively, no tax is payable. A marginal relief provision ensures the tax payable just above ₹12L does not exceed the income exceeding ₹12L. Old Regime: rebate up to ₹12,500 applies if net taxable income is ₹5,00,000 or less.
What is Health and Education Cess?
Health and Education Cess is 4% levied on total income tax plus surcharge. It applies regardless of income level and is not affected by regime choice. For example, if your income tax is ₹50,000 and surcharge is ₹0: cess = 4% × ₹50,000 = ₹2,000. Total tax = ₹50,000 + ₹2,000 = ₹52,000. Cess is paid to the central government and funds health and education schemes — it replaced the earlier Education Cess (2%) and Secondary & Higher Education Cess (1%) from FY 2018-19.
What is surcharge on income tax in India?
Surcharge is an additional tax on the income tax amount for high-income earners: 10% surcharge on tax if income exceeds ₹50 lakh; 15% if income exceeds ₹1 crore; 25% if income exceeds ₹2 crore (both regimes); 37% if income exceeds ₹5 crore (Old Regime only; New Regime caps at 25%). Surcharge is calculated on the base income tax amount before cess. The 4% cess is then applied on (income tax + surcharge) to get the final total tax payable.
What deductions are available under the Old Regime?
Key deductions under the Old Tax Regime: 80C (up to ₹1,50,000): EPF, PPF, ELSS mutual funds, LIC premium, NSC, home loan principal, school fees. 80D (up to ₹25,000 self; ₹50,000 for senior citizen parents): health insurance premiums. 80CCD(1B) (up to ₹50,000): NPS contribution beyond 80C limit. 24(b): home loan interest (up to ₹2,00,000 for self-occupied). HRA exemption: house rent allowance (formula-based). Standard deduction: ₹50,000 for salaried employees. None of these deductions are available under the New Regime.
How do I use the Income Tax Calculator?
Enter your Annual Gross Income (CTC or total annual income before any deduction). Select your tax regime — New Regime is the default from FY 2023-24. If you chose Old Regime, enter your 80C deductions (max ₹1.5L), health insurance premium (max ₹25K), HRA exemption amount, and other deductions. The result shows taxable income, total tax payable (highlighted), effective tax rate, monthly TDS, and annual take-home amount. The pie chart shows the tax vs. take-home split.
What is TDS and how is it related to income tax?
TDS (Tax Deducted at Source) is income tax deducted by your employer before paying your salary. Your annual income tax liability (calculated here) is divided by 12 and deducted monthly — this is your monthly TDS. At year-end, you file an Income Tax Return (ITR) reconciling actual tax liability against TDS deducted. If TDS exceeds tax liability, you get a refund; if it falls short, you pay the balance. TDS rates and computation follow the tax slabs and regime you choose.
Does this calculator apply to all types of income?
This calculator is designed for salaried income from employment — the most common income type in India. For business income (44AD presumptive taxation), capital gains (LTCG/STCG with different rates), rental income, and other sources, the calculation is more complex and may require separate treatment. Salaried employees with only salary income, EPF, and standard investments can use this calculator reliably for a close estimate of their actual tax liability.
What is the standard deduction and who can claim it?
Standard deduction is a flat deduction available to all salaried individuals and pensioners without any investment proof requirement — it was ₹40,000 (FY 2018-20), increased to ₹50,000 (FY 2019-24), and is ₹50,000 under Old Regime and ₹75,000 under New Regime for FY 2024-25 onwards. It replaces the earlier transport allowance (₹19,200/year) and medical reimbursement allowance (₹15,000/year). For a salaried employee earning ₹10L, the standard deduction directly reduces taxable income by ₹75,000 (new regime) without any documentation.
Can I switch between Old and New Regime every year?
For salaried individuals: yes, you can choose the regime each financial year when filing your ITR. You inform your employer of your preferred regime for TDS purposes, but can change when filing returns. For self-employed/business income: you can switch once from Old to New Regime, but switching back is permitted only once in a lifetime. Given that the New Regime has more favourable slabs from FY 2025-26 (₹12L tax-free threshold), most salaried individuals with limited deductions will benefit from the New Regime.