Income Tax Calculator India — FY 2025-26

Calculate your income tax under the Old and New tax regimes for the financial year 2025-26 (AY 2026-27).

Income Slab (₹) Rate Tax (₹)
Tax Before Cess
₹0
Surcharge
₹0
Health & Edu. Cess (4%)
₹0
Total Tax Payable
₹0
Effective Tax Rate
0%
Monthly Tax
₹0

How the Indian Income Tax Calculator Works

India levies income tax on individuals based on a progressive slab system. Starting from FY 2025-26, the government offers two parallel frameworks: the New Tax Regime (default) and the Old Tax Regime. The New Regime features lower rates spread across more slabs but does not permit most deductions and exemptions. The Old Regime retains higher base rates yet allows taxpayers to claim deductions under Sections 80C, 80D, HRA exemption, and others.

New Regime Highlights (FY 2025-26)

Under the revised New Regime, a standard deduction of ₹75,000 is available to salaried individuals. The tax slabs begin at nil for income up to ₹4,00,000 and rise gradually to 30% for income above ₹24,00,000. A rebate under Section 87A ensures that taxpayers with taxable income up to ₹12,75,000 (after the standard deduction) pay zero tax, making this regime highly attractive for middle-income earners.

Old Regime and Age Benefits

Senior citizens (aged 60-80) enjoy a higher basic exemption limit of ₹3,00,000, while super senior citizens (above 80) are exempt up to ₹5,00,000. In the Old Regime, taxpayers with net taxable income up to ₹5,00,000 receive a full rebate under Section 87A. A 4% Health and Education Cess is added on top of the computed tax (including any applicable surcharge). Surcharge applies at progressive rates for incomes exceeding ₹50 lakh, with the New Regime capping the surcharge rate at 25%.

Use this calculator to compare both regimes side by side and determine which option results in lower tax liability for your specific income level. All figures are indicative and based on the Union Budget 2025-26 proposals. Consult a qualified tax professional for personalised advice.

Formula

Taxable Income = Gross Income − Standard Deduction (₹75,000 for salaried, New Regime)
Tax = Σ (Income in each slab × Slab Rate) + 4% Health & Education Cess

Where:

Example Calculation

Scenario: Salaried individual, ₹12,00,000 gross income, New Regime

  • Step 1: Taxable income = ₹12,00,000 − ₹75,000 (standard deduction) = ₹11,25,000
  • Step 2: Tax on first ₹4,00,000 = ₹0
  • Step 3: Tax on ₹4,00,001 – ₹8,00,000 = ₹4,00,000 × 5% = ₹20,000
  • Step 4: Tax on ₹8,00,001 – ₹11,25,000 = ₹3,25,000 × 10% = ₹32,500
  • Step 5: Total tax = ₹52,500 + 4% cess = ₹52,500 + ₹2,100 = ₹54,600
  • Step 6: Section 87A rebate applies (taxable income ≤ ₹12,75,000) → Tax = ₹0
  • Result: No tax payable under the New Regime

New Tax Regime Slabs – FY 2025-26

Income Slab Tax 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%

Standard deduction of ₹75,000 for salaried individuals. Section 87A rebate available up to ₹12,75,000 taxable income. 4% Health & Education Cess applies on total tax.

Disclaimer: This calculator is intended for informational and educational purposes only. The results are estimates based on publicly available tax slab information for FY 2025-26 and should not be considered as professional tax advice. Tax laws are subject to change, and individual circumstances may vary. Please consult a qualified chartered accountant or tax advisor before making any financial decisions based on these calculations. WorldlyCalc is not responsible for any discrepancies or actions taken based on the output of this tool.

Frequently Asked Questions

What is the difference between old and new tax regime?

The New Tax Regime (default from FY 2023-24 onwards) offers lower tax rates spread across more slabs but does not allow most deductions and exemptions such as 80C, 80D, and HRA. The Old Tax Regime has higher base rates but permits taxpayers to claim these deductions, which can significantly reduce taxable income for those with eligible investments and expenses.

How is income tax calculated in India?

Income tax in India is calculated using a progressive slab system. Your total income is divided into slabs, and each slab is taxed at the applicable rate. After computing the basic tax, a surcharge may apply for high incomes, and a 4% Health and Education Cess is added on top of the tax plus surcharge to arrive at the total tax payable.

What is the standard deduction under new regime?

Under the New Tax Regime for FY 2025-26, salaried individuals and pensioners are eligible for a standard deduction of Rs 75,000. This deduction is applied directly to gross salary income before computing tax, reducing the taxable income without requiring any proof of investment or expenditure.

Who is eligible for Section 87A rebate?

Under the New Tax Regime for FY 2025-26, resident individuals with taxable income up to Rs 12,75,000 (after the standard deduction of Rs 75,000) are eligible for a full rebate under Section 87A, making their tax liability zero. Under the Old Regime, the rebate is available for taxable income up to Rs 5,00,000.

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