Income Tax Calculator FY 2025-26
Calculate exact income tax for FY 2025-26 India
Updated for FY 2025-26 (AY 2026-27): New regime tax slabs revised effective 1st April 2025. Standard deduction increased to ₹75,000. Rebate under Section 87A raised to ₹60,000 — making income up to ₹12.75 lakh tax-free for salaried employees under the new regime.
Enter your income to calculate your exact tax liability for FY 2025-26
This calculator covers both old and new tax regimes, all surcharge slabs, Section 87A rebate, cess, and all major deductions — giving you the same result a CA would compute.
Every salaried Indian looks at their payslip and wonders the same thing: is the TDS my employer is deducting actually correct? The answer, more often than not, is that it is either slightly wrong or computed on assumptions that do not match your actual investments and deductions. An employee who has declared Rs 1.5 lakh in 80C investments, Rs 25,000 in health insurance, and a home loan with Rs 2 lakh in annual interest could be saving anywhere between Rs 60,000 and Rs 1.2 lakh in tax compared to someone with identical income and no deductions but only if they have filed their investment declaration correctly and chosen the right regime. Most people do neither with full information.
This income tax calculator for FY 2025-26 is built to give you complete clarity on your exact tax liability before you walk into the HR office, before you file your ITR, and before you make any investment decision. Enter your gross annual income, select your age group, choose between the old and new regime, enter every applicable deduction, and the calculator computes your taxable income, slab-wise breakup, Section 87A rebate, surcharge, cess, effective tax rate, take-home monthly salary, and a side-by-side comparison of both regimes with a clear verdict on which one saves you more money. Updated fully for the revised slabs and enhanced rebate effective 1st April 2025.
Why This Income Tax Calculator Is Different From Every Other Tool Online
Most income tax calculators in India give you one number: your tax payable. That number is useful but not enough. It does not tell you whether you are in the right regime, exactly which slab is consuming how much of your money, what changes to your deductions would move the needle most, or whether your employer's TDS is in the right ballpark. This tool is built to answer all of those questions together.
automatic side-by-side comparison with verdict. Old regime vs new regime
This is the question every Indian taxpayer needs answered before filing. The calculator computes your tax liability under both regimes simultaneously and displays them side by side with every line item: taxable income, tax before rebate, Section 87A rebate, surcharge, cess, total tax, effective rate, and monthly take-home salary. A plain-language verdict at the bottom tells you which regime saves you more and by exactly how much per year and per month. You do not have to run the calculator twice or do any mental arithmetic. The comparison is built into every calculation.
verify every rupee of your tax calculation. Slab-wise breakup table
The slab-wise table shows exactly how much income falls in each tax bracket and how much tax is computed within that bracket, with a running cumulative total. This is the calculation a chartered accountant would perform manually. If your employer's TDS seems wrong, this table lets you check their arithmetic slab by slab. Active slabs, those actually contributing tax, are visually highlighted so you can instantly see which portions of your income are the most expensive. The Section 87A rebate appears as a separate line within the table so you can see exactly how much of your computed tax is being wiped out.
Complete deduction panel for old regime: All eight sections in one place
The old regime deduction panel covers 80C (EPF, PPF, ELSS, life insurance, home loan principal), 80D (health insurance), HRA exemption, LTA, Section 24(b) home loan interest, 80CCD(1B) for NPS additional contribution, 80TTA for savings account interest, and a combined field for other deductions like 80E education loan interest and 80G donations. All eight categories in one place with default values that match common middle-class Indian investment patterns. Update any field and the total deduction and tax figures update instantly. No separate calculation or second tool needed.
general, senior, and super senior, the correct age-based exemption limits
India's old regime tax law gives different basic exemption limits to three age groups. General taxpayers below 60 years have a basic exemption of Rs 2.5 lakh. Senior citizens between 60 and 79 years have a basic exemption of Rs 3 lakh. Super senior citizens aged 80 and above have a basic exemption of Rs 5 lakh. Most online calculators ignore these distinctions and apply the general limit to everyone. This calculator applies the correct slab set based on the age group you select, which means the tax computed for a 68-year-old retiree or a 75-year-old pensioner is genuinely accurate.
Full surcharge calculation across all income bands above Rs 50 lakh
Surcharge is the most commonly missed component in DIY tax calculations. It applies at 10% on income above Rs 50 lakh, 15% above Rs 1 crore, 25% above Rs 2 crore, and either 25% (new regime) or 37% (old regime) above Rs 5 crore. This calculator applies the correct surcharge rate for each band automatically when the toggle is enabled, and shows it as a separate line item in both the breakdown and the regime comparison table. For high income taxpayers this can add lakhs to the tax liability, making it one of the most important fields in the tool.
income split and regime comparison bar chart
The donut chart shows your income split between tax paid and after-tax income, with percentages, making the effective rate immediately intuitive. The grouped bar chart shows total tax and after-tax income side by side for both regimes, so the visual gap between old and new regime tax becomes instantly clear. These charts are not decoration. A person seeing that their tax bar is nearly as tall as their income bar for the first time often reconsiders their financial planning in ways that a table of numbers alone does not trigger.
Updated for the Budget 2025 changes effective FY 2025-26: New regime slabs revised with zero tax up to Rs 4 lakh, the Section 87A rebate raised from Rs 25,000 to Rs 60,000 making income up to Rs 12 lakh tax-free under the new regime, standard deduction for salaried employees increased from Rs 50,000 to Rs 75,000 making the effective zero-tax threshold Rs 12.75 lakh for salaried employees, and the new regime continuing as the default tax regime for all individuals who do not opt out. The old regime remains available for taxpayers with significant deductions. All changes are incorporated in this calculator. For official tax law reference, see the Income Tax Department of India website.
What Changed in FY 2025-26 and How It Affects Your Tax
The Union Budget 2025 introduced the most significant changes to individual income tax in several years. Understanding exactly what changed and what did not is essential before you decide whether to opt for the old or new regime this year. Here is a clear breakdown of everything that is different in FY 2025-26 compared to the previous year.
The new regime has been made significantly more attractive this year. The zero tax slab now covers income up to Rs 4 lakh (previously Rs 3 lakh). The Section 87A rebate has been raised from Rs 25,000 to Rs 60,000, which effectively makes total taxable income up to Rs 12 lakh completely tax-free because the maximum tax on Rs 12 lakh income is exactly Rs 60,000. Add the standard deduction of Rs 75,000 for salaried employees, and the zero-tax threshold for salaried individuals under the new regime is Rs 12.75 lakh gross income.
This is a fundamental change. A salaried employee earning Rs 12 lakh per year paid Rs 26,000 in tax last year. This year, after the rebate enhancement, they pay zero. An employee at Rs 12.75 lakh pays zero after applying the standard deduction. These are not marginal tweaks, they are changes that make the new regime the correct choice for a significantly larger population of Indian taxpayers than before.
The old regime tax slabs have not changed. Basic exemption remains Rs 2.5 lakh for general taxpayers, Rs 3 lakh for senior citizens, and Rs 5 lakh for super senior citizens. The 87A rebate under the old regime remains at Rs 12,500 for taxable income up to Rs 5 lakh. Standard deduction under old regime remains Rs 50,000 for salaried employees. All Section 80C, 80D, HRA, LTA, Section 24(b), and other deduction provisions remain intact and unchanged for those who opt for the old regime.
The old regime continues to be more beneficial for taxpayers with very large deductions. Specifically, if your total deductions including 80C, 80D, HRA, home loan interest, and NPS exceed approximately Rs 3.75 lakh, the old regime is likely to produce a lower tax liability than the new regime. Use the comparison section of this calculator to find your exact crossover point. To understand how your home loan deduction affects this calculation, see our EMI calculator to get the annual interest component of your home loan for Section 24(b) entry.
The Exact Formula and Logic behind how Your Income Tax Is Calculated
India uses a progressive tax system, which means different slabs of your income are taxed at different rates. Understanding how this works prevents the common misconception that "moving into a higher slab" makes all your income more expensive — only the incremental income above the slab threshold is taxed at the higher rate. Here is the full calculation logic this tool uses.
Taxable Income = Gross Income − Standard Deduction − Other Deductions
- New Regime (Salaried): Taxable Income = Gross Income − Rs 75,000 standard deduction
- Old Regime (Salaried): Taxable Income = Gross Income − Rs 50,000 − 80C (max Rs 1.5L) − 80D − HRA − LTA − 24(b) − 80CCD(1B) − other
- Self-Employed (Both Regimes): No standard deduction; only business expenses and applicable deductions
Under the new regime, the only deduction available is the standard deduction of Rs 75,000 for salaried employees and NPS employer contribution under Section 80CCD(2). No 80C, 80D, HRA, or home loan interest deduction is permitted. Under the old regime, the full range of deductions is available and the total deduction can legitimately exceed Rs 5 lakh for a taxpayer with a home loan, full 80C investments, health insurance, and NPS contributions.
Tax = Sum of (Income in Each Slab × Slab Rate) for all slabs up to taxable income
- New Regime Example — Rs 15 lakh taxable income:
- Rs 0 to Rs 4L at 0% = Rs 0
- Rs 4L to Rs 8L at 5% = Rs 20,000
- Rs 8L to Rs 12L at 10% = Rs 40,000
- Rs 12L to Rs 15L at 15% = Rs 45,000
- Total tax before rebate = Rs 1,05,000
- Old Regime Example — Rs 15 lakh taxable income:
- Rs 0 to Rs 2.5L at 0% = Rs 0
- Rs 2.5L to Rs 5L at 5% = Rs 12,500
- Rs 5L to Rs 10L at 20% = Rs 1,00,000
- Rs 10L to Rs 15L at 30% = Rs 1,50,000
- Total tax before rebate = Rs 2,62,500
This example clearly shows why the new regime wins for taxpayers without large deductions. At Rs 15 lakh taxable income, the new regime produces Rs 1,05,000 in tax versus Rs 2,62,500 under the old regime, a saving of Rs 1,57,500 per year. For this person to benefit from the old regime, their total deductions would need to reduce their taxable income from Rs 15 lakh down to approximately Rs 9.6 lakh means they would need deductions of around Rs 5.4 lakh. That is achievable only with a combination of maximum 80C, significant health insurance, a large home loan, and NPS contributions.
Tax After Rebate = Max(0, Tax Before Rebate − Rebate Amount)
- New Regime: If taxable income is at or below Rs 12 lakh, rebate = min(tax before rebate, Rs 60,000)
- Old Regime: If taxable income is at or below Rs 5 lakh, rebate = min(tax before rebate, Rs 12,500)
- Rebate cannot exceed the actual tax computed. It reduces tax to zero but cannot create a refund situation from the rebate alone.
The Section 87A rebate is often misunderstood. It is not an exemption — it is a tax credit applied after the slab-based tax is computed. This is why taxable income of exactly Rs 12 lakh under the new regime results in zero tax: the slab computation produces Rs 60,000 and the rebate is exactly Rs 60,000, resulting in zero. But Rs 12.1 lakh produces Rs 61,500 in tax with zero rebate, meaning the entire Rs 61,500 is payable. This sharp cliff is important to be aware of for year-end tax planning purposes.
Surcharge = Tax After Rebate × Applicable Surcharge Rate
- Taxable income Rs 50 lakh to Rs 1 crore: Surcharge at 10%
- Taxable income Rs 1 crore to Rs 2 crore: Surcharge at 15%
- Taxable income Rs 2 crore to Rs 5 crore: Surcharge at 25%
- Taxable income above Rs 5 crore: Surcharge at 25% (new regime) or 37% (old regime)
Surcharge adds very significantly to high-income tax liability. A person with Rs 1.5 crore taxable income under the old regime pays a 15% surcharge on their already computed tax. This alone can add Rs 5 to 10 lakh to the tax bill depending on the base tax amount. Marginal relief is available where the surcharge is capped so that the increase in tax does not exceed the increase in income above the threshold, but this is a complex provision and your chartered accountant should verify it. For advance tax planning on high incomes, consult a tax professional alongside using this calculator.
Cess = (Tax After Rebate + Surcharge) × 4%
Total Tax = Tax After Rebate + Surcharge + Cess
- Cess of 4% applies to every taxpayer with a tax liability, regardless of income level
- Cess is calculated on the sum of base tax and surcharge, not just base tax
- On a tax liability of Rs 1 lakh, cess adds Rs 4,000 — bringing total to Rs 1,04,000
The 4% cess replaces the older 3% education cess and 1% secondary and higher education cess that were combined in 2018. Unlike income tax, cess cannot be reduced by any deduction or investment. It applies on the final tax amount including surcharge and there is no rebate or exemption mechanism for cess. Always include cess in your tax calculations which represents a meaningful addition for taxpayers in higher brackets.
How to Use This Income Tax Calculator: Step by Step
Step 1: Enter your annual gross income correctly
Enter your total annual gross income from all sources before any deductions. For salaried employees this is your CTC minus employer PF contribution, or simply your gross salary as shown in Form 16 Part B. Include all income sources: salary, rent from a second property, freelance income, interest income, and any other earnings. Do not enter only your basic salary or your take-home salary. The correct figure is the total income from all sources before deductions, as you would declare in your ITR. If you receive a variable component like performance bonus, use the annualised figure or the amount you actually received in the financial year.
Step 2: Select your age group
Age group affects the basic exemption limit under the old regime only. If you are below 60 years, select General. If you are between 60 and 79 years, select Senior Citizen. If you are 80 years or above, select Super Senior Citizen. Under the new regime, all taxpayers use the same slab structure regardless of age, so this selection only changes your tax computation if you end up with the old regime being more beneficial.
Step 3: Choose your regime and employment type
Select New Regime if you want to compute tax under the revised FY 2025-26 slabs with the enhanced rebate. Select Old Regime if you have significant deductions and want to see whether those deductions bring your tax below the new regime amount. For employment type, Salaried applies the standard deduction of Rs 75,000 (new regime) or Rs 50,000 (old regime). Self-employed or business income earners do not get the standard deduction. The regime comparison at the bottom of the results always shows both options regardless of which you select here, so you can see the full picture before making a decision.
Step 4: Fill in deductions (old regime panel)
The deduction panel appears when you select the old regime. Fill in each category with the actual amount you have invested or are eligible to claim. For 80C, this includes EPF contributions (yours, not employer's), PPF deposits, ELSS mutual fund investments, life insurance premiums, and home loan principal repayment, subject to the combined limit of Rs 1.5 lakh. For 80D, enter the actual health insurance premium paid for self, spouse, children, and parents, up to the applicable limits. For HRA, enter the exempt amount after computing the three-formula HRA exemption. For home loan interest under Section 24(b), enter actual interest paid (not principal), subject to Rs 2 lakh for self-occupied property. To find your home loan's annual interest component, use our EMI calculator to get the interest breakup for the financial year.
Step 5: Review the regime comparison and verdict
After calculation, scroll to the Old Regime vs New Regime comparison section. The verdict banner at the bottom states plainly which regime saves you more money and by how much per year and per month. If the old regime is better, the verdict also shows the annual deduction amount that is making it beneficial. This gives you actionable information: if you are currently filing under the new regime but the old regime would save you Rs 80,000 per year, you need to notify your employer of your regime choice at the start of the financial year via the regime declaration form. Missing that window means paying higher TDS all year. To understand how the monthly tax saving interacts with your full monthly budget and savings rate, use our income and expense planner.
Real Examples: Exact Calculator Output for Three Common Indian Taxpayer Profiles
Every number below is produced directly by this calculator. Enter the same inputs and the results will match exactly.
Gross Income: Rs 12,75,000 | Regime: New | Employment: Salaried | Age: General
- Standard deduction: Rs 75,000
- Taxable income: Rs 12,75,000 minus Rs 75,000 = Rs 12,00,000
- Tax before rebate (new regime slabs): Rs 60,000
- Section 87A rebate: Rs 60,000 (taxable income at or below Rs 12 lakh)
- Total tax payable: Rs 0
- Effective tax rate: 0%
- Monthly take-home (before PF and other deductions): Rs 1,06,250
Ananya pays zero income tax under the new regime despite earning Rs 12.75 lakh per year. This is the direct result of the Budget 2025 combination of enhanced standard deduction and raised Section 87A rebate. Her taxable income of exactly Rs 12 lakh sits precisely at the rebate threshold, and the full Rs 60,000 tax is offset by the rebate. Under the old regime with maximum 80C investment of Rs 1.5 lakh and Rs 25,000 in health insurance, her taxable income would be Rs 11,50,000 and tax would be Rs 1,17,000 (including cess) which is significantly higher than the new regime's zero. The new regime verdict here is clear and unambiguous.
Gross Income: Rs 25,00,000 | New Regime Tax vs Old Regime Tax with Full Deductions
- New Regime: Taxable Income = Rs 25L minus Rs 75K = Rs 24.25L | Tax = Rs 3,93,750 | After cess = Rs 4,09,500
- Old Regime deductions: 80C Rs 1.5L + 80D Rs 50K + HRA Rs 1.2L + 24(b) home loan interest Rs 2L + 80CCD(1B) Rs 50K = Rs 5.7L total
- Old Regime: Taxable Income = Rs 25L minus Rs 50K standard minus Rs 5.7L = Rs 18.8L | Tax = Rs 3,54,000 | After cess = Rs 3,68,160
- Old regime saves: Rs 4,09,500 minus Rs 3,68,160 = Rs 41,340 per year | Rs 3,445 per month
- Verdict: Old Regime is better for Vikram by Rs 41,340 per year
Vikram is the classic case where the old regime remains superior despite the new regime's lower slab rates. His large deduction stack which is maximum of 80C, health insurance for himself and parents, significant HRA, a home loan, and NPS contribution of totals Rs 5.7 lakh before standard deduction. This brings his taxable income down far enough that the old regime's higher marginal rates apply to a much smaller income base than the new regime's lower rates on a higher base. The saving of Rs 41,340 is real and worth the administrative effort of declaring investments and maintaining proof. Vikram should use our wealth class calculator to verify that his investments like ELSS and NPS are also serving his broader net worth goals, not just tax saving.
Gross Income: Rs 8,00,000 | Age Group: Senior Citizen (60-79) | Regime: New
- New Regime — Standard deduction (pension is treated as salary): Rs 75,000
- Taxable income: Rs 8,00,000 minus Rs 75,000 = Rs 7,25,000
- Tax before rebate: Rs 16,250 (Rs 0 on first Rs 4L + Rs 16,250 on Rs 3.25L at 5%)
- Section 87A rebate: Rs 16,250 (taxable income within Rs 12L rebate limit)
- Total tax payable: Rs 0
- Old Regime (Senior Citizen bracket, Rs 3L basic exemption): Taxable Income Rs 7,50,000 | Tax Rs 62,500 | After cess Rs 65,000
- New Regime saves: Rs 65,000 per year for Sanjay
Senior citizens often assume the old regime is automatically better because of their higher basic exemption and because they have historically invested heavily in tax-saving instruments. Sanjay's case shows that the new regime's dramatic improvement in FY 2025-26 has overturned this assumption at many income levels. At Rs 8 lakh pension income, the new regime produces zero tax while the old regime (even with the senior citizen Rs 3 lakh exemption) produces Rs 65,000 in tax. Sanjay should switch to the new regime. If his income comes from FD interest and not pension, the standard deduction may not apply, which slightly changes the calculation. He should enter his income type accurately and verify the result.
Income Tax Liability Quick Reference: New Regime FY 2025-26
The table below shows the tax payable under the new regime for common income levels, for salaried employees including the Rs 75,000 standard deduction. These are the figures this calculator produces for each income level. Use this for a quick sanity check of your employer's TDS deduction.
| Annual Gross Income | Taxable Income | Tax Before Rebate | Section 87A Rebate | Total Tax (incl cess) | Effective Rate | Monthly TDS |
|---|---|---|---|---|---|---|
| Rs 7,00,000 | Rs 6,25,000 | Rs 11,250 | Rs 11,250 | Rs 0 | 0% | Rs 0 |
| Rs 10,00,000 | Rs 9,25,000 | Rs 46,250 | Rs 46,250 | Rs 0 | 0% | Rs 0 |
| Rs 12,00,000 | Rs 11,25,000 | Rs 56,250 | Rs 56,250 | Rs 0 | 0% | Rs 0 |
| Rs 12,75,000 | Rs 12,00,000 | Rs 60,000 | Rs 60,000 | Rs 0 | 0% | Rs 0 |
| Rs 15,00,000 | Rs 14,25,000 | Rs 83,750 | Rs 0 | Rs 87,100 | 5.81% | Rs 7,258 |
| Rs 20,00,000 | Rs 19,25,000 | Rs 1,58,750 | Rs 0 | Rs 1,65,100 | 8.26% | Rs 13,758 |
| Rs 25,00,000 | Rs 24,25,000 | Rs 3,93,750 | Rs 0 | Rs 4,09,500 | 16.38% | Rs 34,125 |
| Rs 30,00,000 | Rs 29,25,000 | Rs 5,43,750 | Rs 0 | Rs 5,65,500 | 18.85% | Rs 47,125 |
| Rs 50,00,000 | Rs 49,25,000 | Rs 11,43,750 | Rs 0 | Rs 11,89,500 | 23.79% | Rs 99,125 |
Notice the sharp jump between Rs 12.75 lakh (zero tax) and Rs 15 lakh (Rs 87,100 tax) in the new regime. This cliff exists because the Section 87A rebate is completely withdrawn once taxable income crosses Rs 12 lakh. A person earning Rs 12.76 lakh gross has taxable income of Rs 12.01 lakh just Rs 1,000 above the rebate threshold and pays the full tax on their entire income with no rebate. The rebate is all-or-nothing, not graduated. This is worth noting especially for self-employed individuals or those with year-end bonuses who have some control over timing of income recognition. To model how changes to your income affect your annual tax outgo, use the calculator above with different income values and compare the results.
Old Regime vs New Regime: At What Deduction Amount Does the Old Regime Win?
The single most common question from Indian taxpayers in FY 2025-26 is which regime to choose. The answer depends entirely on the size of your deductions. The table below shows the approximate total deduction threshold at which the old regime becomes more beneficial than the new regime at different income levels. These are the breakeven points computed by this calculator.
| Annual Gross Income | New Regime Tax | Deductions Needed for Old Regime to Win | Practical Verdict |
|---|---|---|---|
| Rs 10,00,000 | Rs 0 | Old regime cannot win here (NR is zero tax) | New Regime always better |
| Rs 12,75,000 | Rs 0 | Old regime cannot win here (NR is zero tax) | New Regime always better |
| Rs 15,00,000 | Rs 87,100 | Deductions above approximately Rs 3.25 lakh | Old Regime if heavily invested |
| Rs 20,00,000 | Rs 1,65,100 | Deductions above approximately Rs 3.75 lakh | Old Regime if full 80C + HRA + 80D |
| Rs 25,00,000 | Rs 4,09,500 | Deductions above approximately Rs 5 lakh | Old Regime for home loan + NPS holders |
| Rs 30,00,000 | Rs 5,65,500 | Deductions above approximately Rs 5.5 lakh | Old Regime for large home loan holders |
Frequently Asked Questions
Disclaimer This calculator is for financial education and tax planning purposes only. It does not constitute professional tax advice. Fintool Baba is not a chartered accountant, tax consultant, or SEBI-registered financial advisor. Results are estimates based on user inputs and standard tax computation logic. Special income types such as capital gains, perquisites, business income, agricultural income, and foreign income require separate computation not fully covered by this tool. For personalised tax planning and ITR filing, consult a qualified chartered accountant or tax professional. To understand how your tax saving impacts your monthly budget allocation, use our income and expense planner. To assess whether your home loan is giving you sufficient benefit under the old regime, use our EMI calculator for the annual interest figure. To evaluate your full financial health including net worth and investment progress, use our wealth class calculator. To calculate SIP amounts needed to build wealth after optimising your tax outgo, use our SIP calculator. Fintool Baba is not responsible for financial or tax decisions made based on this tool's output.
