Income Tax Calculator
Old vs new regime, slab-wise tax liability
Other income
Exemptions & deductions (old regime)
- Income after tax₹14.03 L94%
- Total tax₹97,5006.5%
- Old Regime tax
- ₹1,35,720
- New Regime tax
- ₹97,500
- You save with the New Regime
- ₹38,220
The New Regime costs ₹38,220 less than the Old Regime on these numbers — the lower slab rates outweigh the deductions you would give up.
| Income after tax | ₹14.03 L | 93.5% |
| Total tax | ₹97,500 | 6.5% |
Slab-wise tax · New Regime · FY 2026-27
| Income slab | Rate | Taxable in slab | Tax |
|---|---|---|---|
| ₹0 – ₹4,00,000 | 0% | ₹4,00,000 | ₹0 |
| ₹4,00,000 – ₹8,00,000 | 5% | ₹4,00,000 | ₹20,000 |
| ₹8,00,000 – ₹12,00,000 | 10% | ₹4,00,000 | ₹40,000 |
| ₹12,00,000 – ₹16,00,000 | 15% | ₹2,25,000 | ₹33,750 |
| Total | ₹14,25,000 | ₹93,750 |
Understand the result
About the Income Tax Calculator
How is income tax calculated in India?
Income tax is charged on your taxable income — gross income from salary, interest, rent and other sources, minus exemptions and deductions — using slab rates that rise with income. A rebate, a surcharge on high incomes and a 4% health and education cess then adjust the final figure. Since FY 2023-24, the new tax regime is the default; you can choose the old regime if its deductions save you more.
This income tax calculator works out your tax under both regimes for FY 2024-25, 2025-26 and 2026-27, including HRA exemption, standard deduction, Chapter VI-A deductions, the Section 87A rebate with marginal relief, surcharge and cess, and tells you which regime costs less.
How this calculator works
Income tax is worked out in a fixed order. Your gross income is reduced by exemptions such as HRA, then by the standard deduction, then by Chapter VI-A deductions like 80C and 80D. What remains is your taxable income, and slab rates are applied to it band by band — not a single flat rate on the whole amount.
Rebate under section 87A is applied next: if your taxable income is within the limit, the rebate can wipe out the tax entirely. Surcharge applies only to high incomes, and 4% health and education cess is added last, on tax plus surcharge.
The new regime has wider, lower slabs but removes almost every deduction. The old regime keeps the deductions but taxes at higher rates. Which one wins depends entirely on how much you actually claim, which is why both are calculated for you above.
Every slab, threshold and rate lives in a single configuration file, so the calculator can be updated for a new Finance Act without touching the calculation logic.
Formula
Taxable income = gross income − exemptions − standard deduction − deductions Slab tax = Σ (income in each slab × that slab's rate) Tax after 87A = slab tax − rebate (if eligible) Surcharge = tax × surcharge rate (with marginal relief) Cess = (tax + surcharge) × 4% Total tax = tax + surcharge + cess
Worked example
- Salary ₹15,00,000 under the new regime for FY 2026-27.
- Standard deduction ₹75,000 → taxable income ₹14,25,000.
- Slab tax: nil on the first ₹4L, 5% on ₹4–8L (₹20,000), 10% on ₹8–12L (₹40,000), 15% on ₹12–14.25L (₹33,750) = ₹93,750.
- Add 4% cess (₹3,750) → total tax ₹97,500, about ₹8,125 a month.
New regime tax at common salaries
| Gross salary | Tax payable | Effective tax rate |
|---|---|---|
| ₹12.75 lakh | ₹0 | 0% |
| ₹13 lakh | ₹26,000 | 2.0% |
| ₹15 lakh | ₹97,500 | 6.5% |
| ₹18 lakh | ₹1,50,800 | 8.4% |
| ₹20 lakh | ₹1,92,400 | 9.6% |
| ₹25 lakh | ₹3,19,800 | 12.8% |
| ₹30 lakh | ₹4,75,800 | 15.9% |
| ₹50 lakh | ₹10,99,800 | 22.0% |
Just above ₹12.75 lakh, marginal relief limits the tax to the income above the rebate threshold — at ₹13 lakh the tax is ₹26,000 including cess rather than about ₹66,000.
Recent changes to remember
- Finance Act 2025 (from FY 2025-26): new-regime slabs widened, and the rebate raised so that taxable income up to ₹12 lakh pays no tax.
- Finance Act 2024: new-regime standard deduction raised to ₹75,000, employer NPS deduction under 80CCD(2) raised to 14% of basic in the new regime, and capital gains rates revised.
- The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026 and renumbered sections; the familiar section numbers are used on this page.
Assumptions & important notes
What this calculator assumes
- You are a resident individual. Rates for non-residents, HUFs, firms and companies differ.
- Capital gains use the rates for listed equity: 12.5% long-term above the ₹1.25 lakh exemption and 20% short-term. Property, debt funds, gold and unlisted shares follow different rules and are not modelled.
- The 15% cap on surcharge for capital-gains income is not applied separately — surcharge is computed on total tax.
- Rental income is reduced by the flat 30% standard deduction; municipal taxes and home loan interest on a let-out property are not handled separately.
Important notes
- The new regime is the default. You must opt out of it to use the old regime, and salaried taxpayers can switch every year.
- Under the new regime for FY 2025-26 and FY 2026-27, income up to ₹12 lakh attracts no tax after the ₹60,000 rebate — ₹12.75 lakh for salaried taxpayers once the standard deduction is counted.
- Marginal relief protects you just above the rebate and surcharge thresholds, so a small rise in income can never cost more in tax than the rise itself.
- This is an estimate for planning. Verify with a tax professional or the Income Tax Department’s utility before filing.
Frequently asked questions
Which regime should I choose?
Compare the two figures above using your real deductions. As a rough guide, the old regime usually wins only when your total deductions and exemptions — 80C, 80D, HRA and home loan interest together — run into several lakh rupees. Otherwise the new regime’s lower rates come out ahead.
Is income up to ₹12 lakh really tax-free?
Under the new regime, yes, for FY 2025-26 and FY 2026-27. Tax is computed normally and then a rebate of up to ₹60,000 under section 87A cancels it out for taxable income up to ₹12 lakh. A salaried taxpayer can reach ₹12.75 lakh of salary because of the ₹75,000 standard deduction. The rebate does not apply to capital gains.
Can I claim HRA under the new regime?
No. HRA exemption, 80C, 80D and most other deductions are only available under the old regime. The new regime allows the standard deduction and the employer’s NPS contribution under 80CCD(2).
What is marginal relief?
It stops a tiny increase in income from causing a disproportionate jump in tax. If your income just crosses the rebate limit or a surcharge threshold, the extra tax is capped at the extra income. This calculator applies it automatically.
How do I update the calculator when the Budget changes the slabs?
All rates live in src/data/taxRules.ts. Copy the most recent financial-year entry, change the numbers, and the new year appears in the dropdown — no other file needs editing.
Do I need to file a return if my tax is zero?
Usually yes, if your gross income before deductions is above the basic exemption limit (₹4 lakh in the new regime, ₹2.5 lakh in the old regime for those below 60), and in several other situations — for example, to claim a refund of TDS or if you have foreign assets.
What is the standard deduction?
A flat deduction from salary or pension income, with no proof needed: ₹75,000 in the new regime and ₹50,000 in the old regime.
PaiseWise runs entirely in your browser — the figures you enter are never sent anywhere. Results are estimates for planning only, not financial, tax or investment advice.