Income Tax Calculator India
Is your employer deducting the right TDS? Is the new regime actually saving you money? Get your exact tax under both regimes in seconds — with HRA, NPS, surcharge, and marginal relief.
| Rate | Slab Range | Income in Slab | Tax in Slab |
|---|
New Tax Regime — FY 2025-26 & 2026-27
| Taxable Income Range | Rate | Tax on Slab | Cumulative Tax |
|---|---|---|---|
| ₹0 – ₹4,00,000 | 0% | ₹0 | ₹0 |
| ₹4,00,001 – ₹8,00,000 | 5% | ₹20,000 | ₹20,000 |
| ₹8,00,001 – ₹12,00,000 | 10% | ₹40,000 | ₹60,000 |
| ₹12,00,001 – ₹16,00,000 | 15% | ₹60,000 | ₹1,20,000 |
| ₹16,00,001 – ₹20,00,000 | 20% | ₹80,000 | ₹2,00,000 |
| ₹20,00,001 – ₹24,00,000 | 25% | ₹1,00,000 | ₹3,00,000 |
| Above ₹24,00,000 | 30% | — | — |
Standard Deduction: ₹75,000 | Sec 87A Rebate: ₹60,000 for taxable income ≤ ₹12L (net tax = ₹0) | Plus 4% Health & Education Cess on total tax.
Old Tax Regime — FY 2025-26 (Below 60 Years)
| Taxable Income | Rate |
|---|---|
| Up to ₹2,50,000 | 0% |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Old Regime — Senior Citizen (60–79) & Super Senior (80+)
| Income | Senior Citizen (60–79) | Super Senior (80+) |
|---|---|---|
| Basic Exemption | ₹3,00,000 | ₹5,00,000 |
| Next Slab | 5% on ₹3L–5L | 20% on ₹5L–10L |
| ₹5L–₹10L | 20% | 20% |
| Above ₹10L | 30% | 30% |
Deduction Comparison — New vs Old Regime
| Deduction | New Regime | Old Regime |
|---|---|---|
| Standard Deduction | ✓ ₹75,000 | ✓ ₹75,000 |
| Section 80C (up to ₹1.5L) | ✗ Not allowed | ✓ Available |
| HRA Exemption | ✗ Not allowed | ✓ Available |
| Home Loan Interest 24b (₹2L) | ✗ Not allowed | ✓ Available |
| 80D Health Insurance | ✗ Not allowed | ✓ Up to ₹75,000 |
| 80CCD(1B) NPS Self (₹50K) | ✗ Not allowed | ✓ Available |
| 80CCD(2) Employer NPS | ✓ Available | ✓ Available |
| Zero Tax Ceiling | ₹12,00,000 | ₹5,00,000 |
Surcharge Rates — FY 2025-26
| Total Income | Surcharge | New Regime |
|---|---|---|
| Up to ₹50 Lakh | Nil | Nil |
| ₹50L – ₹1 Crore | 10% | 10% |
| ₹1Cr – ₹2 Crore | 15% | 15% |
| ₹2Cr – ₹5 Crore | 25% | 25% |
| Above ₹5 Crore | 37% | Capped at 25% |
How to Use This Income Tax Calculator India
This free Income Tax Calculator India computes your exact tax liability under both the new and old tax regimes for FY 2025-26 and FY 2026-27, using Union Budget 2025 rules. Here’s how to get the most accurate result:
- Select Financial Year. Choose FY 2025-26 (ITR due July 31, 2025) or FY 2026-27. Both support Budget 2025 updated slabs.
- Choose your age group. Age affects basic exemption limits under the old regime (₹2.5L below 60, ₹3L senior, ₹5L super senior).
- Enter your annual salary or pension. Use gross salary (CTC). The ₹75,000 standard deduction is applied automatically to both regimes.
- Add rental or freelance income. Rental income gets an automatic 30% standard deduction. Enable 44ADA to treat 50% of freelance gross as taxable income.
- Enter TDS deducted by employer. Found on your pay slips or Form 16 Box 4. The calculator shows your TDS refund or additional tax payable.
- Use Advanced Options for old regime deductions. The HRA Quick Calculator auto-fills your HRA exemption using the Minimum of Three Rule as you type.
Budget 2025 — Key Changes in FY 2025-26
Union Budget 2025-26 (February 1, 2025) brought the most significant income tax restructuring in years.
- Zero tax up to ₹12 lakh of taxable income under the new regime — Sec 87A rebate raised to ₹60,000
- New regime slabs restructured — 7 slabs from 0% to 30%, starting with ₹4L basic exemption
- Standard deduction ₹75,000 for salaried and pensioners in both regimes (up from ₹50,000)
- TDS on rent threshold raised to ₹50,000/month (from ₹20,000/month)
- Senior citizen FD interest deduction (80TTB) doubled to ₹1,00,000
- New regime is now the default — you must opt out to use old regime
Understanding the ₹12 Lakh Zero-Tax Cliff
This is India’s #1 tax confusion point in 2025. At exactly ₹12,00,000 taxable income, Section 87A rebate wipes out your entire tax (₹60,000). But at ₹12,00,001, you’d normally pay ₹60,000+ tax on just one rupee more. Marginal relief prevents this cliff — the extra tax can never exceed the extra income above ₹12L. Our calculator applies this automatically.
🎯 Interactive: The ₹12 Lakh Cliff Explorer
Drag the slider to see how tax changes around the ₹12L threshold (new regime, FY 2025-26)
New Regime vs Old Regime — Which Saves More?
The optimal regime depends entirely on your deductions. New regime offers lower slab rates; old regime rewards home loan holders, HRA claimants, and disciplined 80C investors.
- New regime wins for most salaried employees below ₹12.75L gross (zero tax)
- Old regime can win with deductions >₹4–5 lakh (80C + HRA + home loan combined)
- Senior citizens with FD interest: Old regime’s 80TTB (now ₹1L) is decisive
- Income above ₹5 crore: New regime’s 25% surcharge cap (vs 37%) makes it significantly better
Real-Life Tax Calculation Examples
Ramesh, 34 — Software Engineer, Bengaluru, ₹18L Salary
Has: ₹1.5L ELSS (80C), ₹20K health insurance (80D), ₹1.2L HRA, ₹1.5L home loan interest (24b)
Priya, 28 — Freelance Designer + Salary, Chennai, ₹14L Total
₹10L salary + ₹4L freelance (44ADA: 50% = ₹2L taxable). No home loan, no 80C.
Sunita, 65 — Retired Senior Citizen, Pension + FD, ₹8L Total
₹5L pension + ₹3L FD interest. Old regime: Sec 80TTB deduction ₹1L for senior citizens.
HRA Exemption — The Minimum of Three Rule
HRA exemption (old regime only) equals the minimum of: (1) Actual HRA received, (2) 50% of Basic+DA for metro / 40% non-metro, (3) Rent paid minus 10% of Basic+DA. Use the HRA Quick Calculator in Advanced Options above to auto-fill your exemption instantly.
Metro cities for the 50% rule: Mumbai, Delhi (NCR), Kolkata, Chennai only. Bengaluru, Hyderabad, Pune, Ahmedabad are non-metro (40%).
Section 44ADA — Presumptive Tax for Freelancers
Freelance professionals (designer, developer, consultant, doctor, lawyer, architect, CA etc.) with gross receipts up to ₹75 lakh can declare 50% of gross receipts as income under Section 44ADA. No books of accounts needed. Enable the 44ADA checkbox and enter gross receipts — the calculator computes 50% as taxable income automatically.
TDS Refund vs Additional Tax Payable
Enter your TDS deducted (from pay slips or Form 16). If TDS > tax liability, you get a refund — file ITR before July 31 to claim it. If TDS < liability, you need to pay the balance as self-assessment tax before ITR filing to avoid interest under Sections 234B/234C.
Adjust your Form 12BB submitted to your employer every April declaring your regime choice and expected deductions for precise monthly TDS calibration.
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