What is an income tax calculator?
An income tax calculator estimates your annual tax liability under the Old or New tax regime for FY 2025-26 (assessment year 2026-27). Enter your gross annual income and, if you choose the Old Regime, your eligible Chapter VI-A deductions such as 80C, 80D, HRA, and home loan interest.
The tool applies the correct slab rates, standard deduction (₹75,000 under the New Regime and ₹50,000 under the Old Regime for salaried taxpayers), Section 87A rebate where applicable, marginal relief in the New Regime, and 4% Health & Education Cess on the tax payable.
New vs Old tax regime (FY 2025-26)
The New Regime is the default for most taxpayers and offers wider basic exemption limits with a ₹75,000 standard deduction. Taxable income up to ₹12 lakh can be fully rebated under Section 87A, so many salaried individuals pay zero tax on gross income up to about ₹12.75 lakh.
The Old Regime allows deductions under 80C, 80D, HRA, LTA, and home loan interest, but uses the classic four-slab structure with a ₹50,000 standard deduction. It may work out better when your total deductions are substantial—often ₹3–4 lakh or more for high earners with HRA and home loan benefits.
- New Regime — 7 slabs from 0% (up to ₹4L) to 30% (above ₹24L); limited deductions.
- Old Regime — 0% up to ₹2.5L, 5% up to ₹5L, 20% up to ₹10L, 30% above ₹10L; full deduction stack.
- Both regimes — 4% Health & Education Cess on tax after rebate; surcharge not modeled here.
How to use this income tax calculator
Select your tax regime, enter annual gross income (salary or total taxable income before deductions), and add your total Old Regime deductions if applicable. Results show taxable income, tax before and after rebate, cess, total tax payable, and net income after tax.
Compare take-home pay with the salary calculator and withholding on payments with the TDS calculator.
What this calculator does not include
Capital gains (STCG/LTCG), surcharge on high income, agricultural income, special-rate income, DTAA relief, perquisite valuation, advance tax timing, senior citizen enhanced exemption limits, and every notification under the Finance Act are not modeled. Figures are illustrative for FY 2025-26 slab arithmetic—confirm with a chartered accountant before filing your ITR.
Frequently asked questions
What is the standard deduction in FY 2025-26?
Salaried individuals and pensioners get ₹75,000 under the New Regime and ₹50,000 under the Old Regime. This is subtracted from gross income before slab rates are applied.
Up to what income is tax zero in the New Regime?
With the ₹75,000 standard deduction and Section 87A rebate of up to ₹60,000, many salaried taxpayers pay no income tax on gross income up to about ₹12.75 lakh for FY 2025-26, subject to marginal relief rules when income slightly exceeds ₹12 lakh taxable.
Can I claim 80C deductions in the New Regime?
No. Deductions under Section 80C, 80D, HRA, and most other Chapter VI-A items apply only if you opt for the Old Regime. Enter their combined total in the deductions field when using Old Regime mode.
Does this calculator include surcharge and cess?
Health & Education Cess at 4% is included on tax after rebate. Surcharge on income above ₹50 lakh and other levies are not modeled in this tool.