Income Tax Calculator (India)
Reviewed by Subir Kumar Debsharma, Tax, GST and ROC professional with 20+ years of experience.
Most income tax calculators give you two totals and leave you to trust them. This one shows the work. Enter your income and deductions for FY 2025-26, and it computes the tax under both the old and new regimes, names the cheaper one with the exact rupee difference, and prints the full line-item breakdown side by side, including the marginal-relief row on the ₹12 lakh cliff that most calculators quietly skip. It covers salary and other slab-rate income. It is an educational estimate, not tax advice.
Total income before deductions. Salary plus interest, rent and other slab-rate income.
Employer's NPS contribution. The one deduction that also counts under the new regime (up to 14% of salary).
Old regime only. Capped at ₹1,50,000. PPF, ELSS, EPF, life insurance, etc.
Old regime only. Health insurance premium for self and family.
Old regime only. Extra ₹50,000 over and above the ₹1.5 lakh 80C limit.
Old regime only for a self-occupied home. Capped at ₹2,00,000.
HRA exemption, 80G, 80E, 80TTA and any other old-regime deductions, added together.
Lower tax payable, New regime
₹97,500
- New regime total tax
- ₹97,500
- Old regime total tax
- ₹2,02,800
- You save on the lower regime
- ₹1,05,300
- Effective rate, lower regime
- 6.5%
- Monthly in-hand, lower regime
- ₹1,16,875
Line-item breakdown, old vs new
| Step | Old regime | New regime |
|---|---|---|
| Taxable income | ₹12,75,000 | ₹14,25,000 |
| Tax on slabs | ₹1,95,000 | ₹93,750 |
| Less: Section 87A rebate | ₹0 | ₹0 |
| Less: marginal relief | ₹0 | ₹0 |
| Surcharge | ₹0 | ₹0 |
| Health and education cess (4%) | ₹7,800 | ₹3,750 |
| Total tax payable | ₹2,02,800 | ₹97,500 |
The marginal-relief row is the one most calculators hide. It caps the tax on income just above ₹12 lakh taxable so it never exceeds the income over that line. FY 2025-26 (AY 2026-27) slabs. Budget 2026 made no slab change, so FY 2026-27 is the same. This is an estimate for salary and other slab-rate income, not tax advice.
How the calculator works
The calculator applies the FY 2025-26 (AY 2026-27) slabs to your income under each regime, then layers the rebate, surcharge and cess exactly as the Income Tax Department does. Under the new regime it applies the ₹75,000 standard deduction and the employer's NPS contribution, and nothing else. Under the old regime it applies the ₹50,000 standard deduction plus your 80C (capped at ₹1.5 lakh), 80D, 80CCD(1B) NPS (capped at ₹50,000), self-occupied home-loan interest (capped at ₹2 lakh) and any other old-regime deductions you enter. It then runs the Section 87A rebate, marginal relief, surcharge with its own marginal relief, and 4% cess, and reports both totals plus your effective rate and monthly in-hand pay. Budget 2026 left the slabs unchanged, so FY 2026-27 uses the same numbers.
Which regime is cheaper for you?
The cheaper regime is whichever taxes your income the least after deductions, and the answer flips on how much you actually claim. The new regime charges lower rates but ignores your deductions; the old regime charges higher rates but lets you shrink taxable income with 80C, 80D, HRA and home-loan interest. For a salaried person earning ₹15 lakh who maxes 80C and pays ₹25,000 of 80D, the new regime still wins by a wide margin, because ₹1.75 lakh of deductions is not enough to overcome the rate gap. The old regime only pulls ahead once total deductions climb into the several-lakh range. Our [break-even walkthrough](/blog/indian-income-tax-guide-salaried-fy-2025-26) shows the deduction level where the old regime starts to win at each income.
Is ₹12.75 lakh really tax-free?
A salaried person pays no tax up to ₹12,75,000 of gross salary under the new regime, and the two numbers people confuse are worth separating. The ₹75,000 standard deduction brings ₹12,75,000 gross down to ₹12,00,000 taxable. The Section 87A rebate then cancels the ₹60,000 of slab tax on ₹12,00,000, so the tax is zero. The widely-quoted ₹12.75 lakh is the gross salary figure; the rebate and the marginal-relief band both operate on taxable income, which is ₹12,00,000. Push taxable income past ₹12 lakh and marginal relief takes over, holding the tax down until about ₹12,70,588 of taxable income. Our [income tax slabs guide](/blog/income-tax-slab-india-explained) walks the arithmetic in full.
How surcharge and cess stack on top
Surcharge is an extra charge on the tax itself once total income crosses ₹50 lakh, and cess is a flat 4% added at the very end. Surcharge runs at 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore, and 37% above ₹5 crore, though the new regime caps it at 25% so the 37% band does not apply there. Each threshold carries marginal relief, so crossing ₹50 lakh by a small amount does not trigger the full surcharge on the whole tax, and the calculator applies that relief. The 4% health and education cess is charged on tax plus surcharge in both regimes. For the vocabulary behind these, see [tax concepts explained](/blog/tax-concepts-explained).
What the new regime makes you give up
Choosing the new regime means trading away almost every deduction for lower rates, and it is worth knowing exactly what you drop. Gone are Section 80C (the ₹1.5 lakh one for PPF, ELSS, EPF and life insurance), 80D health premiums, HRA under Section 10(13A), the extra ₹50,000 under 80CCD(1B), and self-occupied home-loan interest. One deduction survives: the employer's NPS contribution under Section 80CCD(2), up to 14% of salary. For a beginner weighing where these fit, our [Section 80C explainer](/blog/what-is-section-80c-deduction) and the [complete beginner's guide](/blog/personal-finance-for-beginners-complete-guide) put the regime choice in context.
Pair this with the guides
A calculator gives you the number; the guides explain the why. For the full FY 2025-26 filing walkthrough, including which ITR form applies and the July deadline, read the [income tax guide for salaried employees](/blog/indian-income-tax-guide-salaried-fy-2025-26). To understand why your effective rate is lower than your top slab, see [marginal vs effective tax rate](/blog/marginal-vs-effective-tax-rate-explained). Because tax turns on your exact situation, a qualified Chartered Accountant is the right person for a real return.
Frequently asked questions
Which tax regime is better, old or new, for FY 2025-26?
It depends on how many deductions you actually claim. The new regime is the default and wins for most salaried people because it charges lower slab rates and makes salary up to ₹12.75 lakh effectively tax-free, but it disallows 80C, 80D, HRA and home-loan interest. The old regime can still win if your total deductions are large enough, roughly ₹5 lakh to ₹8 lakh depending on income, to pull your taxable income far enough down. This calculator runs both on your exact numbers and names the cheaper one with the rupee difference.
Is income up to ₹12 lakh really tax-free under the new regime?
Taxable income up to ₹12,00,000 is effectively tax-free under the new regime for FY 2025-26, because the Section 87A rebate of up to ₹60,000 cancels the ₹60,000 of slab tax on that income. For a salaried person the ₹75,000 standard deduction lifts this to ₹12,75,000 of gross salary. The rebate applies to normal slab income only, not to income taxed at special rates such as capital gains.
What is marginal relief on the ₹12 lakh cliff?
Marginal relief stops the tax from jumping sharply the moment taxable income crosses ₹12,00,000. Without it, income of ₹12,10,000 would attract far more tax than the ₹10,000 of extra income. Marginal relief caps the payable tax at the amount by which income exceeds ₹12,00,000, and it applies up to about ₹12,70,588 of taxable income, above which ordinary slab tax is the smaller figure. Most online calculators ignore this and overstate tax in that band; this one applies it.
Does the new regime allow any deductions at all?
The new regime allows very few deductions. It keeps the ₹75,000 standard deduction for salaried people and the employer's NPS contribution under Section 80CCD(2) up to 14% of salary, and it disallows the rest: Section 80C, 80D, HRA under Section 10(13A), the 80CCD(1B) extra NPS deduction, and self-occupied home-loan interest. Those apply only if you choose the old regime.
Is this calculator current for the return I file in 2026?
Yes. It uses the FY 2025-26 (AY 2026-27) slabs, which govern the income tax return due in July 2026. Budget 2026 announced no change to the slabs, so FY 2026-27 uses the same rates. The calculator handles slab-rate income (salary, interest, rent, other sources). It does not compute capital gains, which are taxed at special rates. For your actual return, use the Income Tax Department portal or a qualified Chartered Accountant.
Sources
- Income Tax Department of India, Salaried Individuals for AY 2026-27, slabs, rebate, surcharge and cess, incometax.gov.in
- Income Tax Department of India, Old regime vs new regime tax calculator, incometaxindia.gov.in
- ClearTax, Surcharge and marginal relief, AY 2026-27, cleartax.in