Income tax calculator (India FY 2025-26)

The new regime has been the default tax regime for individuals since FY 2023-24. Salaried taxpayers must explicitly opt out by filing Form 10-IEA to use the old regime.

FY 2025-26 slabs:

• 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: ₹75,000 for salaried / pensioners (up from ₹50,000 in FY 2023-24). Self-employed: nil.

Section 87A rebate: full rebate (up to ₹60,000) if taxable income ≤ ₹12,00,000. So a salaried person earning up to ₹12,75,000 gross pays zero income tax.

Marginal relief applies just above the ₹12L taxable threshold: the total tax payable cannot exceed the income that exceeds ₹12L. So at ₹12,10,000 taxable (₹12,85,000 gross), tax is only ₹10,000 — not the full ₹61,500 you'd compute from the slabs.

Slabs are age-dependent:

• Below 60: Up to ₹2.5L Nil; ₹2.5-5L 5%; ₹5-10L 20%; >₹10L 30%
• 60–79 (Senior): Up to ₹3L Nil; ₹3-5L 5%; ₹5-10L 20%; >₹10L 30%
• 80+ (Super Senior): Up to ₹5L Nil; ₹5-10L 20%; >₹10L 30%

Standard deduction: ₹50,000 for salaried / pensioners. 87A rebate: ₹12,500 if taxable income ≤ ₹5L (rebate cap unchanged).

Available deductions (only in old regime):

• Section 80C — up to ₹1,50,000 (EPF, PPF, ELSS, term plan premium, life insurance, NSC, 5-year tax-saver FD, principal repayment on home loan, tuition fees)
• Section 80D — up to ₹25,000 (₹50,000 if 60+) for self + family health insurance; +₹25,000/₹50,000 for parents
• Section 80CCD(1B) — additional ₹50,000 for NPS contribution
• HRA exemption — least of (actual HRA / rent − 10% of basic / 50% of basic for metros)
• Home-loan interest — up to ₹2,00,000 for self-occupied property
• Section 80G — donations to specified institutions

If your total deductions exceed roughly ₹4-4.5L, the old regime tends to win at higher incomes. This calculator computes both and tells you which one is cheaper for your exact numbers.

Surcharge is a percentage of the tax (not the income) for high earners:

• Above ₹50L: 10%
• Above ₹1Cr: 15%
• Above ₹2Cr: 25%
• Above ₹5Cr (old regime only): 37%. New regime caps at 25%.

The maximum effective tax rate at the highest slab works out to 39% in the new regime (30% slab × 1.25 surcharge × 1.04 cess) vs 42.74% in the old regime (30% × 1.37 × 1.04). That's the biggest reason ultra-high earners prefer the new regime even after losing all deductions.

Health & Education Cess (HEC) is a flat 4% on (tax + surcharge) in both regimes. Funds the government's health and education spending.

Quick decision tree (salaried, below 60):

• Gross income ≤ ₹12,75,000: new regime — zero tax under 87A rebate, no need to bother with deductions.
• Gross ₹12,75,001 – ₹15,00,000: new regime usually wins unless you have ₹2L+ of legitimate deductions.
• Gross ₹15L – ₹25L: depends on deduction level. At ₹4L+ of deductions the old regime often wins. Use this tool to compute both and pick.
• Gross > ₹50L: new regime usually wins due to the lower surcharge cap (25% vs 37%).

You can switch between regimes every year (for salaried), so re-evaluate each January when you do your investment declaration. Self-employed individuals get one lifetime switch from new to old (and back) — pick carefully.

Educational only — not tax advice. For complex scenarios (capital gains, multiple properties, ESOPs, foreign income), consult a Chartered Accountant.

Use this tool for quick planning, comparison, and what-if finance scenarios. Use official calculators, a qualified adviser, or source documents before filing taxes, signing contracts, or making irreversible money decisions.

1. Enter income + profile — Gross annual income (before any tax), age group (below 60 / senior / super senior), and whether you're salaried or self-employed. Standard deduction is auto-applied based on these.
2. Enter old-regime deductions — Sum of 80C (up to ₹1.5L) + 80D + HRA exemption + home-loan interest (up to ₹2L) + others. Used only for the old-regime calculation; new regime ignores most of these.
3. Read the comparison — Both regimes are computed and the cheaper one is highlighted. Expand 'Show slab-by-slab breakdown' on either card to see how the slab math arrives at the tax figure.

• Confirm rates, compounding frequency, tax year, dates, and rounding before acting on the result.
• Fees, penalties, inflation, and local rules can make real outcomes differ from simple formulas.
• Treat results as guidance, not financial, tax, legal, or investment advice.

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