Income Tax Calculator
FY 2025-26 · AY 2026-27
Compare the old and new tax regimes side by side — slab-wise tax, 87A rebate, surcharge and 4% cess — and see which regime saves you more. Updated for Budget 2025.
This income tax calculator computes your payable tax for FY 2025-26 (AY 2026-27) by applying the current slab rates, standard deduction, Section 87A rebate, surcharge and 4% cess to your income — and shows the old vs new regime side by side so you pick the cheaper one. Under the new regime, salaried income up to ₹12,75,000 is effectively tax-free (₹12L rebate + ₹75K standard deduction); for non-salaried the limit is ₹12,00,000. Enter your income in the tool below to compare instantly.
Income Tax Calculator
Pick your financial year and regime, enter income and (for the old regime) deductions, then hit calculate. The tool returns tax under both regimes and recommends the lower one.
Income Tax Calculator
Compare the old and new tax regime live — salary, deductions, surcharge, cess and 87A rebate, all in one screen.
Slab-wise breakdown
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Disclaimer: Indicative estimate for individual residents. Actual tax may vary with exemptions, capital gains and special-rate income. Rates per Finance Act 2025.
Budget 2025 — what changed in the new regime
The new tax regime is now the default. For FY 2026-27, the rebate under Section 87A was raised so a resident individual pays zero tax up to ₹12 lakh of taxable income — and with the ₹75,000 standard deduction, salaried people are effectively tax-free up to ₹12.75 lakh.
Income tax slabs — FY 2026-27
Pick the regime that gives you the lower tax. The new regime has lower rates but almost no deductions; the old regime has higher rates but lets you claim 80C, 80D, HRA and home-loan interest.
| Up to ₹4,00,000 | Nil |
| ₹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% |
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
How income tax is calculated
Add up all income → subtract the standard deduction (and old-regime deductions) → apply the slab rates → apply the 87A rebate if eligible → add surcharge (high income) and a 4% cess. Here is what a salaried person pays under each regime (new regime, standard deduction only):
Key terms explained
Standard deduction
A flat deduction from salary — ₹75,000 in the new regime and ₹50,000 in the old regime for FY 2026-27. No proof needed; it applies automatically to salary and pension income.
Section 87A rebate
A rebate that makes tax nil for lower incomes — up to ₹12L taxable in the new regime (rebate up to ₹60,000) and up to ₹5L in the old regime (up to ₹12,500).
Surcharge
An extra levy on high incomes — 10% above ₹50L, 15% above ₹1Cr, 25% above ₹2Cr. The new regime caps surcharge at 25% (the old regime can reach 37%).
Health & education cess
A flat 4% charged on the total of tax plus surcharge, in both regimes. It funds health and education programmes and is not optional.
How This Calculator Works
The calculator uses the slab rates in force for FY 2025-26 under Budget 2025 and applies each step of the tax computation in order:
- Enter gross income (salary, business, rent, etc.).
- Salaried individuals get a ₹75,000 standard deduction under the new regime (₹50,000 under the old regime).
- Under the old regime you can add deductions — 80C up to ₹1.5L, 80D health insurance, HRA and more.
- Section 87A rebate is applied automatically — new regime is nil tax up to ₹12L taxable, old regime up to ₹5L taxable.
- Surcharge (for income above ₹50L) and 4% health & education cess are added on top.
For most salaried people with income below ₹15L and deductions below about ₹3.75L, the new regime wins. The old regime only overtakes it when your 80C + 80D + HRA + home-loan deductions are large. The calculator computes both and highlights the recommended one, so you never have to guess.
New Regime Slabs — FY 2025-26
The new regime for FY 2025-26 has seven bands. Because of the Section 87A rebate, no tax is actually payable where taxable income is up to ₹12,00,000.
| Taxable Income Slab | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹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% |
Section 87A rebate makes tax nil up to ₹12L taxable. Salaried get an extra ₹75,000 standard deduction, so the effective zero-tax salary is ₹12.75L. A 4% health & education cess applies on the tax. See the full income tax slabs.
Old Regime Slabs (for comparison)
| Taxable Income Slab | Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Old regime: 87A rebate makes tax nil up to ₹5L taxable; standard deduction ₹50,000 for salaried. Deductions (80C, 80D, HRA, 24(b)) are allowed.
Example — ₹15,00,000 Salary, New Regime
A salaried person earning ₹15,00,000 under the new regime for FY 2025-26:
| Step | Amount |
|---|---|
| Gross salary | ₹15,00,000 |
| Less: standard deduction | ₹75,000 |
| Taxable income | ₹14,25,000 |
| Tax before rebate (slab-wise) | ₹93,750 |
| Rebate u/s 87A (taxable > ₹12L) | Nil |
| Add: 4% cess | ₹3,750 |
| Total tax payable | ₹97,500 |
Illustration only. Actual tax depends on your exact income, deductions and surcharge. Use the calculator above for your own figures.
The break-even point shifts as your investments and rent change. Re-run the calculator each year before you file — a small change in 80C or HRA can flip which regime is cheaper.
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