Income Tax Calculator India — FY 2025-26 & FY 2026-27
Estimate your income tax under both regimes. Enter your gross income, toggle between the new and old regime, and see a slab-wise breakup plus a side-by-side comparison that recommends the cheaper option.
Total tax — new regime
–
including 4% health & education cess
Effective tax rate
–
total tax ÷ gross income
Tax by slab
How the selected regime taxes each income slab.
Slab-wise breakup
| Income slab | Taxable in slab | Tax |
|---|
How income tax is computed
India taxes individuals slab-wise: each portion of your taxable income is taxed at the rate for its slab, and the portions are added up. From the total you then subtract the standard deduction (for salaried), apply the Section 87A rebate or marginal relief if eligible, and finally add the 4% health and education cess.
New regime slabs (FY 2025-26 & FY 2026-27)
| Taxable income | Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4 – 8 lakh | 5% |
| ₹8 – 12 lakh | 10% |
| ₹12 – 16 lakh | 15% |
| ₹16 – 20 lakh | 20% |
| ₹20 – 24 lakh | 25% |
| Above ₹24 lakh | 30% |
Salaried individuals get a ₹75,000 standard deduction. If taxable income is ₹12 lakh or less, the 87A rebate wipes out the tax entirely (maximum rebate ₹60,000). Just above ₹12 lakh, marginal relief caps your tax at the amount by which your income exceeds ₹12 lakh.
Old regime slabs
| Taxable income | Rate |
|---|---|
| Up to ₹2.5 lakh | Nil |
| ₹2.5 – 5 lakh | 5% |
| ₹5 – 10 lakh | 20% |
| Above ₹10 lakh | 30% |
The old regime keeps the ₹50,000 standard deduction for salaried individuals plus deductions like 80C (₹1.5 lakh), 80D, HRA and home-loan interest. The 87A rebate zeroes tax up to ₹5 lakh of taxable income (maximum rebate ₹12,500) — with no marginal relief beyond that.
Worked example
A salaried individual earns ₹12 lakh and claims ₹1.5 lakh of 80C deductions:
- New regime: taxable = 12,00,000 − 75,000 = ₹11,25,000 → within the ₹12 lakh rebate limit → tax ₹0.
- Old regime: taxable = 12,00,000 − 50,000 − 1,50,000 = ₹10,00,000 → slab tax ₹1,12,500 → no rebate → + 4% cess = ₹1,17,000.
The new regime wins by ₹1,17,000 here. Flip the deductions to ₹4+ lakh (80C + HRA + home-loan interest) and the old regime can still come out ahead — which is exactly why comparing both matters.
Income Tax Calculator FAQs
Which is better — the new or old tax regime?
It depends on your deductions. If you claim few deductions (no 80C, HRA or home-loan interest), the new regime's lower slabs and ₹12 lakh rebate usually win. If you claim large deductions — 80C, 80D, HRA and home-loan interest together — the old regime can still be cheaper. This calculator computes both and tells you which is lower.
What is the Section 87A rebate?
Section 87A gives a full rebate of your slab tax when taxable income is within the limit — ₹12 lakh under the new regime (maximum rebate ₹60,000) and ₹5 lakh under the old regime (maximum rebate ₹12,500). The result: zero tax up to those limits, before the 4% cess.
What is marginal relief in the new regime?
Just above ₹12 lakh of taxable income, your slab tax could exceed the extra income you earned — e.g. ₹50,000 more income triggering ₹67,500 of tax. Marginal relief caps your tax at the amount by which your income exceeds ₹12 lakh, so earning more never leaves you worse off.
Is the new regime the default option?
Yes. Since FY 2023-24 the new regime is the default under Indian income tax law. If you want the old regime with its deductions, you must actively opt for it while filing your income tax return.
What deductions can I claim in the old regime?
Common old-regime deductions include 80C (EPF, PPF, ELSS, life insurance — up to ₹1.5 lakh), 80D (health insurance premiums), HRA exemption, home-loan interest up to ₹2 lakh under Section 24, NPS contributions up to ₹50,000 under 80CCD(1B), and the ₹50,000 standard deduction for salaried individuals.
Does this calculator include surcharge?
No. This calculator covers slab tax, the 87A rebate, marginal relief and the 4% health and education cess. It excludes surcharge, which applies at higher income levels (generally above ₹50 lakh), and special-rate incomes like capital gains. Treat the result as an estimate.