Income Tax Calculator
Calculate your income tax for FY 2025-26 (AY 2026-27). Compare the new and old tax regimes side by side with deductions like 80C, HRA, and standard deduction applied.
Your Income
₹12 Lakh
FY 2025-26 (AY 2026-27) · Includes 4% cess & 87A rebate
Total Tax — New Regime
₹0
Effective rate 0.00% · In-hand ₹12 Lakh
Regime Comparison
Tax Breakdown — New Regime
How It Works
India has two income tax regimes for individuals. The New Regime (default from FY 2024-25) offers lower slab rates but removes most deductions. The Old Regime has higher slab rates but allows deductions like 80C (₹1.5L), HRA, NPS (80CCD), home loan interest, and more. The right regime depends on your deductions — if your total deductions exceed roughly ₹3.75L, the old regime usually wins. Our calculator applies the standard deduction (₹75,000 under new, ₹50,000 under old), 87A rebate, and 4% cess, then shows you both regimes side by side so you can pick the better one.
Tax Calculation Formula
Tax = Sum of (slab income × slab rate) + 4% Health & Education Cess on tax. Rebate u/s 87A: if taxable income ≤ ₹7L (new) or ₹5L (old), tax = nil.
New Regime example: ₹12L income − ₹75K std. deduction = ₹11.25L taxable. Tax on slabs = ₹112,500. But taxable ≤ ₹12L → 87A rebate (up to ₹60K) applies. Net tax = ₹112,500 − ₹60,000 = ₹52,500 + 4% cess = ₹54,600.
With standard deduction of ₹75K, the effective zero-tax threshold under the new regime is ₹12.75L — because taxable income becomes ₹12L and rebate covers all tax.
New Regime Slabs (FY 2025-26)
- Up to ₹4 lakh
- Nil
- ₹4L – ₹8L
- 5%
- ₹8L – ₹12L
- 10%
- ₹12L – ₹16L
- 15%
- ₹16L – ₹20L
- 20%
- ₹20L – ₹24L
- 25%
- Above ₹24L
- 30%
Frequently Asked Questions
Which is better — new or old tax regime?
It depends on your deductions. The new regime is better if your total deductions (80C, HRA, home loan interest, NPS, etc.) are less than roughly ₹3.75 lakh per year. If you have substantial deductions — e.g., full 80C (₹1.5L), HRA, home loan, and NPS — the old regime often saves more tax. Our calculator shows both side by side so you can decide instantly.
What are the new tax regime slabs for FY 2025-26?
New regime slabs (FY 2025-26): Up to ₹4L — nil; ₹4L–8L — 5%; ₹8L–12L — 10%; ₹12L–16L — 15%; ₹16L–20L — 20%; ₹20L–24L — 25%; Above ₹24L — 30%. Standard deduction: ₹75,000. Rebate u/s 87A: up to ₹60,000 if income ≤ ₹12L (making effective tax nil for income up to ₹12.75L with standard deduction).
What are the old tax regime slabs for FY 2025-26?
Old regime slabs (unchanged): Up to ₹2.5L — nil; ₹2.5L–5L — 5%; ₹5L–10L — 20%; Above ₹10L — 30%. Standard deduction: ₹50,000. Rebate u/s 87A: up to ₹12,500 if taxable income ≤ ₹5L (making effective tax nil up to ₹5L). Plus 4% Health & Education Cess on computed tax.
What deductions are available under the old regime?
Old regime allows: Section 80C (₹1.5L — PPF, ELSS, LIC, EPF, home loan principal); 80D (health insurance — ₹25,000 self, ₹50,000 parents); 80CCD(1B) (NPS — ₹50,000 extra); HRA exemption; home loan interest (₹2L limit); standard deduction (₹50,000); Leave Travel Allowance; and several others. Most of these are not available under the new regime.
What is Section 87A rebate?
Section 87A provides a rebate (not deduction) that directly reduces your tax liability. Under the new regime, if your taxable income is ₹12 lakh or less, you get a rebate of up to ₹60,000 — effectively making your tax nil. Under the old regime, the rebate is ₹12,500 for income ≤ ₹5 lakh. With the standard deduction, effective zero-tax threshold under the new regime is ₹12.75 lakh.
Is surcharge applicable on my income?
Surcharge applies to higher incomes: 10% surcharge if income is between ₹50L–₹1Cr; 15% for ₹1Cr–₹2Cr; 25% for ₹2Cr–₹5Cr; 37% for above ₹5Cr (old regime only; 25% cap under new regime). Surcharge is calculated on the income tax amount (before cess), then 4% cess is applied on tax plus surcharge.