About the Income Tax Calculator
What is the Income Tax Calculator?
This income tax calculator works out your tax for FY 2025-26 (assessment year 2026-27) under both the new and the old tax regime, using the slabs, standard deductions and rebates introduced by the Finance Act 2025, and recommends the cheaper one.
Enter your salary or pension, other income and the deductions you claim. The new regime allows only the ₹75,000 standard deduction and employer NPS, but has lower rates and a rebate that makes income up to ₹12 lakh tax-free. The old regime has higher rates but lets you claim HRA, 80C, 80D, NPS, home-loan interest and more. A side-by-side table shows every step of the calculation.
How to use the Income Tax Calculator
- Your Age (sample: Below 60 years)
- Gross Salary or Pension (₹ per year) (sample: 15,00,000)
- Other Income – interest, rent, etc. (₹ per year) (sample: 50,000)
- HRA Exemption (₹, old regime only) — use the HRA Exemption Calculator to work this out. (sample: 1,20,000)
- Section 80C Investments (₹, max ₹1.5 lakh) (sample: 1,50,000)
- Section 80D Health Insurance (₹) (sample: 25,000)
- Own NPS – 80CCD(1B) (₹, max ₹50,000) (sample: 0)
- Home Loan Interest – Self-Occupied (₹, max ₹2 lakh) (sample: 0)
- Employer NPS – 80CCD(2) (₹) — your employer's NPS contribution, shown on the salary slip. (sample: 0)
- Other Deductions – 80E, 80G, 80TTA, etc. (₹, old regime) (sample: 0)
- Press Calculate Income Tax (results also refresh as you type). The result card shows the Your Income Tax (Better Regime), along with Recommended regime, Tax under the new regime, Tax under the old regime and Effective tax rate.
Formula used
Tax = (Slab tax − Rebate 87A) + Surcharge + 4% Cess
- Taxable income (new) = salary − ₹75,000 + other income − employer NPS
- Taxable income (old) = salary − ₹50,000 − HRA + other income − Chapter VI-A deductions
- Rebate 87A = up to ₹60,000 if taxable income ≤ ₹12 lakh (new); up to ₹12,500 if ≤ ₹5 lakh (old)
Marginal relief applies just above ₹12 lakh in the new regime and above the ₹50 lakh / ₹1 crore / ₹2 crore surcharge thresholds, so extra tax never exceeds the extra income.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Your Age | Below 60 years |
| Gross Salary or Pension (₹ per year) | 15,00,000 |
| Other Income – interest, rent, etc. (₹ per year) | 50,000 |
| HRA Exemption (₹, old regime only) | 1,20,000 |
| Section 80C Investments (₹, max ₹1.5 lakh) | 1,50,000 |
| Section 80D Health Insurance (₹) | 25,000 |
| Own NPS – 80CCD(1B) (₹, max ₹50,000) | 0 |
| Home Loan Interest – Self-Occupied (₹, max ₹2 lakh) | 0 |
| Result | Value |
|---|---|
| Your Income Tax (Better Regime) | ₹1,05,300 |
| Recommended regime | New regime, saves ₹75,660 |
| Tax under the new regime | ₹1,05,300 |
| Tax under the old regime | ₹1,80,960 |
| Effective tax rate | 6.79% |
| Monthly TDS (spread over 12 months) | ₹8,775 |
| Marginal tax rate (new regime) | 15.6% |
Income tax slabs for FY 2025-26
| Income slab (new regime) | 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% |
| Income slab (old regime, below 60) | Rate |
|---|---|
| Up to ₹2,50,000 (₹3 lakh at 60–79, ₹5 lakh at 80+) | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Tips for using the Income Tax Calculator
- Salaried people with income up to ₹12.75 lakh pay no tax under the new regime (₹12 lakh + ₹75,000 standard deduction).
- Salaried employees can switch regimes every year when filing their return; people with business income can switch back only once.
- If your deductions (including HRA) are below the break-even level, the new regime is cheaper — use the Old vs New Regime Calculator to find it.