Income Tax Calculator
Estimate your income tax for the selected financial year under both the new and old regimes, including the Section 87A rebate, surcharge and 4% cess.
What is the Income Tax Calculator?
Income tax is charged on your total income at slab rates. India offers two regimes: the new regime (default) with lower rates and few deductions, and the old regime with higher rates but deductions such as 80C, 80D, HRA and home loan interest.
How does it work?
For each regime, taxable income = gross income − standard deduction (₹75,000 new / ₹50,000 old for salaried) − eligible deductions. Tax is calculated slab by slab, the 87A rebate is applied (with marginal relief just above ₹12 lakh in the new regime), then surcharge (with marginal relief) and 4% health & education cess. Rates are read from a versioned rules file for each financial year.
Formula
Tax = Σ (income in slab × slab rate) − 87A rebate + surcharge + 4% cess
Example
FY 2025-26, salary ₹15 lakh: new regime taxable income ₹14.25 lakh → tax ₹97,500 (₹93,750 + cess). With ₹1.5 lakh 80C and ₹25,000 80D, the old regime tax is ₹2,02,800, so the new regime saves ₹1,05,300.
Frequently asked questions
Is income up to ₹12 lakh tax-free?
In the new regime for FY 2025-26, yes — the 87A rebate makes tax nil up to ₹12 lakh of taxable income (₹12.75 lakh salary after standard deduction). It does not apply to special-rate income like capital gains.
Can I switch regimes every year?
Salaried individuals without business income can choose each year when filing the return. Those with business income can switch back to the old regime only once.
What is marginal relief?
It ensures the extra tax just above a threshold (the ₹12 lakh rebate limit or a surcharge limit) is never more than the extra income.
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