Income Tax Calculator
Estimate your income tax liability for FY 2025-26 (AY 2026-27) under both the old and new tax regimes side by side, for a salaried individual under 60, and see which regime saves you more.
New Regime
Old Regime
How to Use the Income Tax Calculator
- 1Enter your annual gross income (before any deductions).
- 2Enter your total deductions and exemptions for the old regime only — for example, Section 80C, 80D and HRA combined (this field only affects the old regime calculation; the new regime doesn't allow most of these).
- 3Your taxable income, tax payable (including 4% Health & Education Cess) and effective tax rate appear for both regimes, side by side.
- 4A one-line verdict tells you which regime saves you more, and by how much.
Tax Slabs & Formula Used (FY 2025-26)
This calculator compares tax liability for a salaried individual below 60 years of age under the two regimes available for FY 2025-26 (AY 2026-27). It explicitly excludes surcharge, which applies only above ₹50 lakh of income — if your income exceeds ₹50 lakh, consult a CA, since surcharge can meaningfully change your final tax liability.
New Regime: A standard deduction of ₹75,000 is first subtracted from gross income (for salaried individuals) to arrive at taxable income. Slabs applied on taxable income (marginal, not flat):
- ₹0 – ₹4,00,000: 0%
- ₹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%
A Section 87A rebate makes tax payable fully ₹0 if taxable income is ₹12,00,000 or less. A 4% Health & Education Cess is then added on top of tax after rebate.
Old Regime: A standard deduction of ₹50,000 is subtracted from gross income, followed by your entered Total Deductions (80C, 80D, HRA, etc. combined), to arrive at taxable income. Slabs applied (below age 60):
- ₹0 – ₹2,50,000: 0%
- ₹2,50,001 – ₹5,00,000: 5%
- ₹5,00,001 – ₹10,00,000: 20%
- Above ₹10,00,000: 30%
A Section 87A rebate makes tax payable fully ₹0 if taxable income is ₹5,00,000 or less under the old regime. A 4% Health & Education Cess is then added on top of tax after rebate.
What changed in the new regime: The new regime offers a higher basic exemption and wider slabs, plus a larger standard deduction (₹75,000 vs ₹50,000) and a higher 87A rebate threshold (₹12L vs ₹5L taxable income) — but it disallows most other deductions and exemptions (80C investments, HRA, home loan interest, etc.) that the old regime allows. Broadly, taxpayers with few deductions tend to benefit more from the new regime, while those with large 80C/80D/HRA claims may still do better under the old regime.
Worked example — ₹15,00,000 gross salary, ₹1,50,000 old-regime deductions:
New Regime: Taxable income = 15,00,000 − 75,000 = 14,25,000. Marginal tax: 0% on first 4L = ₹0; 5% on next 4L (4L–8L) = ₹20,000; 10% on next 4L (8L–12L) = ₹40,000; 15% on remaining 2,25,000 (12L–14.25L) = ₹33,750. Slab tax = ₹93,750. Since taxable income (14.25L) exceeds the ₹12L rebate threshold, no rebate applies. Add 4% cess (₹3,750) → Total tax ≈ ₹97,500. Effective rate ≈ 6.5%.
Old Regime: Taxable income = 15,00,000 − 50,000 − 1,50,000 = 13,00,000. Marginal tax: 0% on first 2.5L = ₹0; 5% on next 2.5L (2.5L–5L) = ₹12,500; 20% on next 5L (5L–10L) = ₹1,00,000; 30% on remaining 3L (10L–13L) = ₹90,000. Slab tax = ₹2,02,500. Taxable income exceeds the ₹5L rebate threshold, so no rebate applies. Add 4% cess (₹8,100) → Total tax ≈ ₹2,10,600. Effective rate ≈ 14.04%.
In this example, the New Regime saves about ₹1,13,100 compared to the Old Regime.
Frequently Asked Questions
Formula and figures on this page were checked against official sources as of August 2026. See our editorial process. This tool is for informational purposes only and isn't financial, tax or medical advice.