Income tax calculation might seem complicated, but it's actually quite straightforward once you understand the basics. The government taxes your annual income in slabs – the more you earn, the higher the percentage you pay. For FY 2025-26, if you earn up to ₹4 lakh under the new tax regime, you pay zero tax. Beyond that, tax rates gradually increase from 5% to 30%.
The tricky part is choosing between the old tax regime vs new tax regime. The old tax regime lets you claim tax deductions for things like EPF contributions, health insurance premiums, and home loan interest. The new tax regime offers lower income tax rates but takes away most of these tax-saving deductions. Our Income Tax Calculator helps you compare both options side by side so you can make an informed decision about your tax planning.
When calculating your tax liability, don't forget about HRA exemption if you're paying rent. The house rent allowance can significantly reduce your taxable income. Also, make sure to include all your Section 80C investments like PPF, ELSS mutual funds, and life insurance premiums. These tax-saving investments can save you thousands in taxes.
If you're also dealing with other types of income like capital gains from selling stocks or property, you might want to use our capital gains tax calculator to get a complete picture of your total tax liability. This is especially important if you've made profits from equity investments or real estate sales.
For salaried employees and business owners who need to plan their quarterly advance tax payments, our advance tax calculator can help you estimate how much you need to pay each quarter to avoid advance tax penalties. This is crucial for freelancers and self-employed individuals who don't have TDS deducted from their income.
Don't forget about Section 87A rebate under the new tax regime which can reduce your tax by up to ₹60,000 if your taxable income is up to ₹12 lakh for FY 2025-26. This tax rebate is subject to the tax payable and can significantly lower your tax burden. Under the old regime, the rebate is limited to those with total income up to ₹5 lakh. Also, if you're paying professional tax in your state, make sure to include that in your calculations as it's deductible from your taxable income.
Need more detailed information about tax filing and ITR submission? Check out the official Income Tax Department's tax slabs and rates guide for the latest information on tax rates and slabs for FY 2025-26.
Select between Old Regime (with deductions) or New Regime (simplified). The calculator will show which regime saves you more tax.
Input your gross annual salary. For Old Regime, also provide basic salary, HRA received, and rent paid for accurate HRA calculation.
Enter your Section 80C investments (max ₹1.5L), Section 80D medical insurance (max ₹25K), and other deductions.
Press "Calculate Tax" to get instant results with detailed breakdown, regime comparison, and tax savings analysis.
Check the summary cards, detailed calculation breakdown, and regime comparison to understand your tax liability.
Use the regime comparison to choose the best option and explore tax-saving strategies in the information section below.
For Old Regime:
For New Regime:
This calculator provides estimates based on current FY 2025-26 tax rates. For complex income structures or multiple income sources, consult a tax professional. Always verify calculations with your CA or tax advisor before filing returns.
Regime Comparison
New regime has lower tax rates but limited deductions. Old regime allows more deductions but has higher tax rates. Choose the regime that results in lower tax liability for your income level.
Accuracy Disclaimer
This calculator provides estimates based on current tax laws for FY 2025-26. Results include surcharge for high incomes and marginal relief. For complex scenarios involving specific deductions beyond 80C/80D, consult a tax professional.
Our Income Tax Calculator for FY 2025-26 is designed to help Indian taxpayers accurately estimate their tax liability under both the old and new tax regimes. With the recent updates to the new regime including increased basic exemption limit to ₹4 lakhs and enhanced rebate provisions, it's crucial to compare both regimes to determine which option saves you more money.
This calculator takes into account all the latest changes including the revised tax slabs, increased standard deduction of ₹75,000 for the new regime, and the enhanced Section 87A rebate of up to ₹60,000 for incomes up to ₹12 lakhs. It also includes comprehensive calculations for HRA exemption, Section 80C and 80D deductions for the old regime, along with surcharge and cess calculations for high-income earners.
Whether you're a salaried employee, freelancer, or business owner, this tool helps you make informed decisions about your tax planning strategy. The side-by-side comparison feature instantly shows which regime works better for your specific income and deduction scenario, potentially saving you thousands of rupees in taxes.
| Income Range | Tax Rate |
|---|---|
| ₹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% |
• Standard Deduction: ₹75,000
• Section 87A Rebate: Up to ₹60,000 (for income ≤ ₹12L)
• Limited deductions available
| Income Range | Tax Rate |
|---|---|
| ₹0 - ₹2,50,000 | 0% |
| ₹2,50,001 - ₹5,00,000 | 5% |
| ₹5,00,001 - ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
• Standard Deduction: ₹50,000
• Section 87A Rebate: Up to ₹12,500 (for income ≤ ₹5L)
• HRA, 80C, 80D deductions available
• Surcharge: 10% (₹50L–₹1Cr), 15% (₹1Cr–₹2Cr), 25% (₹2Cr–₹5Cr), 37% (above ₹5Cr for old regime)
• Health & Education Cess: 4% on tax + surcharge
• Marginal relief is applicable for surcharge calculations
| Exemption / Deduction | Old Regime | New Regime |
|---|---|---|
| Standard Deduction | ₹50,000 | ₹75,000 |
| House Rent Allowance (HRA) | Available | Not Available |
| Section 80C (PPF, ELSS, LIC, etc.) | Up to ₹1.5L | Not Available |
| Section 80D (Health Insurance) | Up to ₹75K | Not Available |
| Leave Travel Allowance (LTA) | Available | Not Available |
| Home Loan Interest (Self-occupied) | Up to ₹2L | Not Available |
| Section 87A Rebate | Up to ₹12.5K (income ≤ ₹5L) | Up to ₹60K (income ≤ ₹12L) |
The Old Regime offers multiple deductions but has higher tax rates, while the New Regime has lower tax rates but limited deductions. Choose based on your deduction eligibility and income level. Use the calculator above to compare both regimes for your specific situation.
You can use our free India Tax Calculator to instantly calculate your income tax for FY 2025-26. Simply enter your income details, select your tax regime (old or new), add eligible deductions, and get accurate results. Our calculator is updated with the latest tax slabs, including the enhanced Section 87A rebate of ₹60,000 for the new regime.
The key differences for FY 2025-26 are:
The new tax regime is beneficial for individuals with limited deductions who earn between ₹6–15 lakhs annually. With the enhanced ₹60,000 rebate, taxpayers earning up to ₹12 lakhs can pay zero tax. It's also suitable for young professionals who don't claim many deductions like HRA, 80C investments, or home loan interest.
If your gross total income exceeds the basic exemption limit but you pay zero tax due to rebate u/s 87A, filing ITR is still mandatory. For FY 2025-26, if your income exceeds ₹2.5 lakh (old regime) or ₹3 lakh (new regime), you must file ITR even if your final tax liability is zero after rebate.
HRA exemption under old regime is the minimum of:
Note: HRA exemption is not available under the new tax regime.
Our calculator computes your annual tax liability accurately for FY 2025-26, but it doesn't calculate TDS (Tax Deducted at Source) month-by-month. TDS is computed by employers based on projected annual income. The final tax liability calculated by our tool helps you determine if you need to pay additional tax or claim a refund during ITR filing.
With the enhanced rebate under the new regime, taxpayers earning up to ₹12 lakhs can save significantly. Use this calculator to compare both regimes and make an informed decision. The higher standard deduction of ₹75,000 under the new regime also reduces your taxable income effectively.