Income Tax Calculator
Calculate your income tax under old and new tax regimes for FY 2025-26.
Income Details
Deductions (Old Regime Only)
✅ saves you more!
* Based on FY 2025-26 tax slabs. Surcharge not included. Consult a tax advisor for precise calculation.
Income Tax in India
Income tax in India is levied by the central government on the income earned by individuals, Hindu Undivided Families (HUFs), companies, firms, and other entities. The Income Tax Act of 1961 governs the taxation framework, and the rates are revised annually through the Union Budget. For individuals, income tax is calculated based on tax slabs where different portions of income are taxed at different rates, with the rates increasing as income increases (progressive taxation).
Old Tax Regime vs New Tax Regime
India currently offers two tax regimes for individual taxpayers. The Old Regime allows various deductions and exemptions (80C, 80D, HRA, LTA, etc.) but has higher base tax rates. The New Regime (default from FY 2024-25 onwards) offers lower tax rates with simplified slabs but eliminates most deductions and exemptions except the standard deduction of ₹75,000. Choosing the right regime depends on your income level and the total deductions you can claim.
New Regime Tax Slabs (FY 2025-26)
Under the new tax regime: Income up to ₹4,00,000 is exempt. ₹4,00,001 to ₹8,00,000 is taxed at 5%. ₹8,00,001 to ₹12,00,000 at 10%. ₹12,00,001 to ₹16,00,000 at 15%. ₹16,00,001 to ₹20,00,000 at 20%. ₹20,00,001 to ₹24,00,000 at 25%. Above ₹24,00,000 at 30%. A rebate under Section 87A is available for taxable income up to ₹12,00,000, making the effective tax zero for such incomes.
Old Regime Tax Slabs
Under the old regime: Income up to ₹2,50,000 is exempt. ₹2,50,001 to ₹5,00,000 at 5%. ₹5,00,001 to ₹10,00,000 at 20%. Above ₹10,00,000 at 30%. In addition, a 4% health and education cess is applicable on the total tax amount under both regimes. Surcharge applies for higher incomes: 10% for income above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore, and 37% above ₹5 crore.
Using the Income Tax Calculator
Enter your annual gross income, applicable deductions under Section 80C, 80D, HRA exemption, and other eligible deductions. Our calculator instantly computes your tax liability under both the old and new regimes side by side, showing you exactly which regime saves you more money. The comparison view includes cess, surcharge, and the final tax payable, making it easy to make an informed decision during tax planning season.
Frequently Asked Questions
It depends on your income and deductions. If your total deductions (80C, 80D, HRA, etc.) exceed ₹3-4 lakh, the old regime may save more tax. If your deductions are limited, the new regime with its lower rates and higher rebate limit is usually better. Our calculator compares both regimes so you can see the exact difference.
Under the new tax regime, the standard deduction is ₹75,000 for salaried individuals. Under the old regime, it remains ₹50,000. The standard deduction is automatically subtracted from your gross salary before computing taxable income, and no proof or investment is required to claim it.
Under the new regime, if your taxable income (after all deductions) is up to ₹12,00,000, you get a full rebate under Section 87A, making your tax liability zero. Under the old regime, the rebate applies for taxable income up to ₹5,00,000. The rebate is applied before calculating cess and surcharge.
A 4% health and education cess is applicable on the total income tax amount (including surcharge, if any) under both regimes. For example, if your calculated tax is ₹1,00,000, the cess would be ₹4,000, making your total tax ₹1,04,000. This cess funds healthcare and education initiatives.
Surcharge is an additional tax on high-income earners. Under both regimes: 10% surcharge for income above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore. Under the new regime, the maximum surcharge rate is capped at 25%. The surcharge is calculated on the tax amount before cess.