Income Tax Calculator
Calculate your income tax under New and Old tax regimes. Free tax calculator for FY 2025-26 with 80C deductions and 87A rebate.
Income Tax Calculator
Compare Old vs New tax regimes for FY 2025-26
Include salary, interest, and other sources
Applies only to Old Tax Regime
Smart Recommendation
Switch to New Regime
You will save ₹1,32,600 in taxes annually.
New Regime
RecommendedTotal Tax Payable
₹93,600
Effective Rate
6.24%
Standard Ded.
₹1,00,000
Old Regime
Total Tax Payable
₹2,26,200
Effective Rate
15.08%
Exemptions
₹2,00,000
Filing Tips for FY 2025-26
No Tax up to ₹12L
Under the New Tax Regime for FY 2025-26, salaried individuals with taxable income up to ₹12,00,000 pay zero income tax due to tax rebates.
Higher Std. Deduction
The standard deduction for salaried individuals and pensioners has been increased to ₹1,00,000 in the New Tax Regime (Budget 2025).
New Regime is Default
The New Tax Regime remains the default choice. If you wish to claim deductions like 80C or 24(b), you must explicitly opt for the Old Regime.
What is Income Tax Calculator?
An Income Tax Calculator helps you estimate your tax liability under both New and Old tax regimes. It considers your income, deductions, and applicable tax slabs to provide accurate tax calculations for FY 2025-26.
How It Works
The calculator subtracts applicable deductions from your gross income to arrive at taxable income. It then applies the relevant tax slab rates and adds 4% health and education cess to compute total tax liability.
Formula & Calculation Method
Tax is calculated progressively: income within each slab is taxed at the applicable rate, then 4% health and education cess is added to the total tax.
Examples
New Regime - ₹12 Lakh Salary
1Gross income: ₹12,00,000
2Standard deduction: ₹75,000
3Taxable income: ₹11,25,000
4Up to ₹4L: Nil
5₹4L-8L (5%): ₹20,000
6₹8L-11.25L (10%): ₹32,500
7Total tax before rebate: ₹52,500
8Section 87A rebate: ₹52,500
9Final tax: ₹0
Tax Payable: ₹0
New Regime - ₹20 Lakh Salary
1Gross income: ₹20,00,000
2Standard deduction: ₹75,000
3Taxable income: ₹19,25,000
4Up to ₹4L: Nil
5₹4L-8L: ₹20,000
6₹8L-12L: ₹40,000
7₹12L-16L: ₹60,000
8₹16L-19.25L: ₹65,000
9Total tax: ₹1,85,000
10Cess 4%: ₹7,400
11Final tax: ₹1,92,400
Tax Payable: ₹1,92,400
Benefits
- 1Compare New vs Old regime instantly
- 2Plan tax-saving investments
- 3Avoid last-minute tax surprises
- 4Optimize your tax liability
- 5Understand tax slab impact
Common Use Cases
Expert Tips
- 1Start tax planning at the beginning of the financial year
- 2Maximize 80C deductions up to ₹1.5 lakh
- 3Compare regimes before choosing
- 4Invest in ELSS for 80C benefits with growth potential
- 5File ITR before the due date to avoid penalties
Common Mistakes to Avoid
- !Not claiming all eligible deductions
- !Choosing wrong tax regime
- !Ignoring 80C investment deadline
- !Not reporting all income sources
- !Missing tax-saving investment deadlines
Frequently Asked Questions
Find answers to common questions about this calculator below.
Income tax in India is calculated based on progressive tax slabs. Under the New Regime (FY 2025-26), income up to ₹4 lakh is exempt, 5% for ₹4-8 lakh, 10% for ₹8-12 lakh, 15% for ₹12-16 lakh, 20% for ₹16-20 lakh, and 30% above ₹20 lakh. The Old Regime has different slabs with higher exemptions.
The New Regime (with lower rates but fewer deductions) is generally better if you have limited investments. The Old Regime (higher rates but more deductions) is better if you claim significant deductions under 80C, 80D, HRA, etc. Use our calculator to compare both regimes.
Under the New Regime (FY 2025-26), taxable income of ₹12 lakh has zero tax due to the rebate under Section 87A. Under the Old Regime, with standard deduction and 80C deductions, tax may vary from ₹50,000 to ₹1,00,000 depending on your investments.
Section 87A provides a tax rebate of up to ₹25,000 (or the total tax amount, whichever is lower) for individuals with taxable income up to ₹12 lakh under the New Regime (FY 2025-26). For the Old Regime, the rebate is available for income up to ₹5 lakh.
Section 80C allows deductions up to ₹1.5 lakh for investments in PPF, EPF, ELSS mutual funds, life insurance premiums, NSC, tax-saving FDs, Sukanya Samriddhi Yojana, and home loan principal repayment.
Under the New Regime FY 2025-26, on ₹15 lakh salary (after standard deduction of ₹75,000), taxable income is ₹14,25,000. Tax = ₹1,23,750 + 4% cess = ₹1,28,700. Under Old Regime with maximum deductions, it could be lower.
Standard deduction of ₹75,000 is available for salaried individuals under both New and Old tax regimes for FY 2025-26. This is a flat deduction from gross salary.
HRA exemption is the minimum of: (1) Actual HRA received, (2) Rent paid minus 10% of salary, (3) 50% of salary for metro cities (40% for non-metros). HRA can only be claimed under the Old Tax Regime.
Short-term capital gains (holding < 12 months for listed shares) are taxed at 15%. Long-term capital gains (holding > 12 months) above ₹1 lakh are taxed at 10%. For other assets, LTCG is taxed at 20% with indexation benefit.
Income tax return filing is mandatory if your gross income exceeds ₹2.5 lakh (₹3 lakh for senior citizens, ₹5 lakh for super senior citizens). However, filing a nil return is recommended even if income is below the taxable limit to maintain a clean tax record.