How the income tax calculator works
Enter your gross annual income and your total deductions, choose your
financial year and age group, and indicate whether your income is
salaried. The calculator then runs the full computation under both regimes:
it subtracts the standard deduction and (for the old regime) your other
deductions to get taxable income, applies the slab rates, removes any Section 87A
rebate, adds surcharge and 4% cess, and shows the total tax for each regime side
by side — with the cheaper one marked.
New regime slabs (FY 2025-26)
The new regime is the default. After Budget 2025 its slabs are:
| Taxable income | 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% |
A ₹75,000 standard deduction applies to salaried and pension income, and the
Section 87A rebate makes income up to ₹12 lakh tax-free. Most other deductions
are not available here.
Old regime slabs (FY 2025-26)
The old regime keeps the traditional slabs and a higher basic exemption for
seniors (₹3 lakh for ages 60–79, ₹5 lakh for 80+):
| Taxable income (below 60) | Rate |
|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
In return you can claim deductions such as 80C, 80D, HRA and home-loan interest,
plus a ₹50,000 standard deduction on salary. The 87A rebate makes taxable income
up to ₹5 lakh tax-free.
Old vs new: which is cheaper?
There is no universal answer — it turns on how much you can deduct. As a rough
guide, the more deductions you genuinely claim, the more the old regime works in
your favour; with few deductions, the new regime’s lower rates usually win.
Rather than rely on rules of thumb, put your actual income and deductions into the
calculator above and read off the recommended regime. For a deeper walkthrough of
the trade-off, see our guide on choosing between the old and new tax
regime.
Rebate, surcharge and cess explained
- Section 87A rebate wipes out tax for lower incomes — up to ₹12 lakh in the
new regime and ₹5 lakh in the old. Just above the new-regime limit, marginal
relief caps the tax at the income earned over the threshold.
- Surcharge is an extra charge on the tax itself for high earners (over
₹50 lakh), with its own marginal relief so crossing a threshold never costs more
than the extra rupee that crossed it.
- Health & Education cess of 4% is added to the tax plus surcharge under both
regimes.
This income tax calculator is an estimation and planning aid for general
information only. It is not tax advice. Tax rules change and individual
situations vary; figures here may not reflect every deduction, exemption,
capital-gains rate or surcharge that applies to you. Always confirm your final
liability with a qualified chartered accountant or tax professional, or via the
official Income Tax Department portal, before filing or making decisions.