What is an Income Tax Calculator?
An income tax calculator estimates how much tax you owe for the financial year under both the New Tax Regime and the Old Tax Regime, so you can pick the one that saves you more. It applies the latest tax slabs, standard deduction, Section 87A rebate, surcharge and 4% health & education cess to your income and deductions.
Salaried employees, pensioners and professionals in India can use it to plan investments before the year ends and to choose the right regime when declaring to their employer.
How to use the Income Tax Calculator
- 1Select the financial year and your age group.
- 2Enter your gross annual income.
- 3Enter deductions such as 80C (EPF, PPF, ELSS, life insurance), 80D (health insurance), HRA and home loan interest — these apply only to the old regime.
- 4Compare the tax payable under both regimes and see which one is lower.
Income Tax Calculation Formula
- Taxable income
- — Gross income − standard deduction − eligible deductions
- Slab tax
- — Tax computed band by band on taxable income
- Cess
- — 4% health & education cess on tax + surcharge
Example: ₹15 lakh salary, FY 2025–26, New Regime
| Standard deduction | ₹75,000 |
|---|---|
| Taxable income | ₹14,25,000 |
| Tax on slabs | ₹93,750 |
| Tax + 4% cess | ₹97,500 |
Slab working: 5% on ₹4–8 lakh (₹20,000) + 10% on ₹8–12 lakh (₹40,000) + 15% on ₹12–14.25 lakh (₹33,750).
New Tax Regime slabs (FY 2025–26)
- Up to ₹4,00,000 — Nil
- ₹4,00,001 to ₹8,00,000 — 5%
- ₹8,00,001 to ₹12,00,000 — 10%
- ₹12,00,001 to ₹16,00,000 — 15%
- ₹16,00,001 to ₹20,00,000 — 20%
- ₹20,00,001 to ₹24,00,000 — 25%
- Above ₹24,00,000 — 30%
Under the new regime, a rebate under Section 87A makes income up to ₹12 lakh (₹12.75 lakh for salaried taxpayers after the ₹75,000 standard deduction) effectively tax-free.
Old Tax Regime slabs (below 60 years)
- Up to ₹2,50,000 — Nil
- ₹2,50,001 to ₹5,00,000 — 5%
- ₹5,00,001 to ₹10,00,000 — 20%
- Above ₹10,00,000 — 30%
Senior citizens (60–80) get a ₹3 lakh basic exemption and super senior citizens (80+) get ₹5 lakh. The old regime allows deductions such as 80C (₹1.5 lakh), 80D, HRA, LTA and home loan interest under Section 24(b).
New vs Old regime: which should you choose?
The new regime suits most taxpayers who don't claim large deductions — it has lower rates and a higher rebate. The old regime can still win if you claim substantial deductions together, such as full 80C, 80D, HRA on high rent and home loan interest. Enter your figures above to compare both side by side before deciding.
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Results from this calculator are estimates based on the inputs and assumptions you enter. They are for information and education only and are not financial, tax or investment advice.