India Income Tax Calculator
Calculate your income tax for FY 2025-26 under both Old and New Regime. Compare deductions, see which regime saves you more, and view your complete tax breakdown.
New Regime
₹0
Take-home: ₹12,00,000
Old Regime
₹1,11,800
Take-home: ₹10,88,200
💡 New Regime saves you ₹1,11,800 per year
| Item | Amount |
|---|---|
| Gross Income | ₹12,00,000 |
| Standard Deduction | ₹75,000 |
| Taxable Income | ₹11,25,000 |
| Take-home Pay | ₹12,00,000 |
Tax Rules Current As Of: June 2026
This calculator uses India tax rates for FY 2025-26 (AY 2026-27). Tax rules are sourced from Income Tax Department, Government of India. Rates are periodically verified but may not reflect the most recent changes.
Estimate Only — Not Tax Advice
This calculator provides simplified estimates for informational purposes only. Results may not account for all deductions, credits, surcharges, or individual circumstances applicable to your situation. Always consult a qualified tax professional or chartered accountant for accurate tax filing.
Assumptions
- Taxpayer is a resident individual
- Only employment/salary income is considered
- Standard deduction is applied automatically
- No capital gains, business income, or foreign income
- New Regime is default from FY 2023-24 onwards
- Section 87A rebate applied for taxable income up to ₹12L (new regime)
- Standard deduction: ₹75,000 (new) / ₹50,000 (old)
- Surcharge for income above ₹50L is NOT included in this estimate
Limitations
- This is an estimation tool — results may differ from official calculations
- Does not account for all possible credits, exemptions, or surcharges
- State/local tax rules may not be fully represented
- Tax laws change frequently — verify against official sources before filing
- Not a substitute for professional tax advice
- Does not calculate surcharge (10-37% for income above ₹50L)
- Professional tax (state-level) not included
- Employer-specific components (LTA, HRA actuals) may differ
- Capital gains and other income sources not supported
How the India Tax Calculator Works
This calculator computes your Indian income tax liability under both the Old and New Tax Regimes for FY 2025-26. It applies the progressive slab rates published by the Income Tax Department, factors in the standard deduction, Section 87A rebate, and 4% Health & Education Cess to show your total tax and take-home salary.
New Regime Tax Slabs (FY 2025-26)
₹0–3L: 0% | ₹3–7L: 5% | ₹7–10L: 10% | ₹10–12L: 15% | ₹12–15L: 20% | ₹15L+: 30% + 4% Cess on total tax | Standard Deduction: ₹75,000 | 87A Rebate if taxable ≤ ₹12L
Worked Example — ₹15,00,000 Salary (New Regime)
- • Gross Salary: ₹15,00,000
- • Less Standard Deduction: ₹75,000
- • Taxable Income: ₹14,25,000
- • Tax on ₹0–3L: ₹0
- • Tax on ₹3–7L: ₹4L × 5% = ₹20,000
- • Tax on ₹7–10L: ₹3L × 10% = ₹30,000
- • Tax on ₹10–12L: ₹2L × 15% = ₹30,000
- • Tax on ₹12–14.25L: ₹2.25L × 20% = ₹45,000
- • Total Tax: ₹1,25,000 + 4% Cess = ₹1,30,000
- • Effective Rate: ~8.7% | Monthly Take-Home: ~₹1,14,167
How to Interpret Results
The effective tax rate is your total tax divided by gross income — the actual percentage you pay overall. The marginal rate is the rate on your last rupee of income (the highest slab you fall into). Use the Old vs New comparison to see which regime saves more based on your deductions. If your 80C + 80D + HRA deductions exceed approximately ₹3.75 lakh, the Old Regime may be beneficial.
Practical Use Cases
- Salary negotiation — understand real take-home before accepting a CTC
- Tax-saving investment planning — determine optimal 80C allocation (EPF, ELSS, PPF)
- HRA vs New Regime decision — compare HRA exemption benefit against lower new rates
- Bonus/increment impact — see how additional income affects your marginal rate
- Employer PF contribution planning — understand 80C limits with mandatory EPF
Common Mistakes
- Confusing gross salary with taxable income — deductions reduce your taxable base first
- Forgetting the 4% Health & Education Cess — it is applied on tax, not income
- Not considering employer PF contribution when calculating 80C limit (employer PF counts toward ₹1.5L cap)
- Assuming the New Regime is always better — high-deduction taxpayers may save more with Old Regime
- Ignoring the ₹12L rebate threshold — taxable income even ₹1 above ₹12L removes the entire 87A rebate
Frequently Asked Questions
What is the difference between Old and New Tax Regime in India?
The New Regime (default from FY 2023-24) offers lower tax rates but no deductions except standard deduction of ₹75,000. The Old Regime allows deductions under 80C (₹1.5L), 80D, HRA, home loan interest etc., but has higher base rates. Choose based on your total deductions — if they exceed ~₹3.75L, Old Regime may save more.
What is Section 87A rebate under New Regime?
Under the New Regime for FY 2025-26, if your taxable income (after ₹75K standard deduction) is ≤ ₹7,00,000, you pay zero tax due to the Section 87A rebate. This effectively makes income up to ₹7.75 lakh tax-free under the new regime.
How is Health & Education Cess calculated?
A 4% cess is applied on total income tax (not on income). So if your tax is ₹1,00,000, cess adds ₹4,000, making total tax ₹1,04,000. This cess funds health and education initiatives.
What deductions can I claim under Old Regime?
Key deductions: Section 80C (EPF, PPF, ELSS, life insurance — up to ₹1.5L), Section 80D (health insurance — ₹25K-₹1L), HRA exemption, home loan interest under Section 24 (up to ₹2L), NPS under 80CCD(1B) (₹50K extra), and standard deduction of ₹50,000.
Is this calculator accurate for filing ITR?
This provides estimates based on FY 2025-26 slabs. It does not account for surcharge (income > ₹50L), capital gains, professional tax, or employer-specific components like special allowances. Use it for planning and consult a CA for actual filing.