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India · FY 2025-26 (AY 2026-27)

Income tax calculator

Enter your income and instantly see how much tax you owe — under both the new and old regimes. We apply the latest slabs, the §87A rebate, surcharge and cess, then tell you which regime keeps more in your pocket.

Your income details

Tweak the numbers — results update live

₹12L / year
none

Interest, rent and any income taxed at normal slab rates. Excludes special-rate capital gains.

Income tax payableNew regime
₹0
₹12,00,000 in hand / year0.0% effective

0.0%

Effective rate

of gross income

₹1L

In hand

per month

₹11.25L

Taxable

after deductions

₹1.64L

Tax saved

vs other regime

New regimeBest

₹0

total tax

Effective rate
0.0%
Old regime

₹1,63,800

total tax

Effective rate
13.7%

The new regime saves you ₹1,63,800 in tax this year — its lower slabs win here.

Where your income goes

New regime · gross ₹12L

₹12LIn hand
  • You keep₹12L
No tax payable. Your taxable income of ₹11,25,000 is fully covered by the §87A rebate under the new regime.

Income tax payable

₹0

New regime

Methodology

How your income tax is worked out

Tax isn’t one flat rate — it’s built up slab by slab, then adjusted by the rebate, surcharge and cess. Here’s the path from gross income to the final figure, computed the same way for both regimes.

  1. 1

    Find taxable income

    Start with gross income, then subtract the standard deduction — plus old-regime exemptions and deductions (HRA, 80C, 80D, NPS, home-loan interest).

  2. 2

    Apply the slabs

    Walk the progressive slab rates for the chosen regime to get the base tax on your taxable income.

  3. 3

    Rebate & relief

    The §87A rebate zeroes tax up to the threshold (₹12L new / ₹5L old); marginal relief softens the jump just above it.

  4. 4

    Add surcharge & cess

    Add any surcharge on high incomes, then a 4% health & education cess — that’s your total tax.

New regime slabs

Default

After ₹75,000 standard deduction · FY 2025-26

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%

Old regime slabs

After ₹50,000 standard deduction · age below 60

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%

Plus a 4% health & education cess and surcharge on high incomes, in both regimes. The old regime additionally allows 80C, 80D, HRA and home-loan deductions.

Questions

Frequently asked

How is income tax calculated in India for FY 2025-26?

Your tax is the sum of slab-rate tax on your taxable income, plus surcharge on high incomes, plus a 4% health and education cess. Taxable income is your gross income minus the standard deduction and — in the old regime — exemptions like HRA and deductions such as 80C and 80D. This calculator runs both regimes and shows which one charges less.

Which tax regime is better — new or old?

The new regime has lower slab rates, a ₹75,000 standard deduction, and makes income up to ₹12 lakh effectively tax-free via the §87A rebate, but it disallows most deductions. The old regime is usually better only if your combined deductions (HRA, 80C, 80D, NPS, home-loan interest) are large. Enter your numbers above and the calculator picks the cheaper regime for you.

Is income up to ₹12 lakh really tax-free under the new regime?

Yes. For FY 2025-26 the §87A rebate makes tax zero when taxable income is up to ₹12,00,000. With the ₹75,000 standard deduction, a salaried person can earn up to ₹12.75 lakh and pay no income tax under the new regime. Marginal relief applies just above ₹12 lakh.

What deductions can I claim in the old regime?

The old regime allows the ₹50,000 standard deduction, HRA and other exempt allowances, Section 80C up to ₹1.5 lakh (EPF, ELSS, LIC, PPF, tuition), Section 80D health-insurance premiums, an extra ₹50,000 for NPS under 80CCD(1B), and up to ₹2 lakh of home-loan interest under §24(b). Enter these under "Add deductions" to compare regimes accurately.

Does this calculator handle other income?

Yes. Add interest, rental and other income taxed at normal slab rates in the "Other income" field — it is added to your salary income before tax is computed. Special-rate capital gains (such as 111A/112A) are not included, as they are taxed at separate flat rates.

What is the surcharge and cess on income tax?

A surcharge applies on top of tax for higher incomes: 10% above ₹50 lakh, 15% above ₹1 crore, and 25% above ₹2 crore (the new regime caps the surcharge at 25%). A 4% health and education cess is then added to tax plus surcharge in both regimes.