How to Use the India Income Tax Calculator
- Enter your annual salary and other income sources
- Add your deductions under Section 80C, 80D, HRA, and NPS
- Include any capital gains from equity investments
- View the side-by-side comparison of old vs new regime
- The tool recommends the best regime based on your numbers
India Income Tax 2025-26 — How It Works
The Union Budget 2025 made the new tax regime the default option for all taxpayers. Under the new regime, income up to ₹12 lakh is effectively tax-free due to the enhanced rebate under Section 87A. However, the new regime does not allow most deductions (80C, 80D, HRA) that are available under the old regime.
The old regime still offers significant tax savings for individuals who make full use of deductions — such as ₹1.5 lakh under 80C (PPF, ELSS, life insurance), health insurance premiums under 80D, and HRA exemption. The choice between regimes depends entirely on how many deductions you can claim.
New Regime Tax Slabs (2025-26)
| Income Range | Rate |
|---|---|
| ₹0 - ₹4,00,000 | Nil |
| ₹4,00,001 - ₹8,00,000 | 5% |
| ₹8,00,001 - ₹12,00,000 | 10% |
| ₹12,00,001 - ₹16,00,000 | 15% |
| ₹16,00,001 - ₹20,00,000 | 20% |
| ₹20,00,001 - ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Plus 4% Health & Education Cess on total tax.
Who Should Use This Tool?
- Salaried employees deciding between old and new tax regime
- Freelancers with multiple income sources
- Investors with capital gains and deduction-heavy portfolios
- Anyone filing ITR wanting to compare tax outcomes
Important Notes
- This calculator provides estimates only. Consult a CA for advice specific to your situation
- Rates are based on the 2025-26 Union Budget proposals
- Surcharge is not included in this calculator (applicable for income above ₹50 lakh)
- Does not include alternative minimum tax (AMT) or securities transaction tax (STT)
Frequently Asked Questions
Is the new regime better for everyone? No. The new regime is better for those who cannot claim significant deductions. The old regime still wins for individuals with high 80C, 80D, and HRA claims.
What is the rebate under Section 87A? Under the new regime, income up to ₹12 lakh pays zero tax due to the rebate. Under the old regime, income up to ₹5 lakh gets a rebate.
Does this include cess? Yes, 4% Health & Education Cess is included in the total tax calculation.
Is my data stored? No. All calculations happen in your browser. Nothing is sent to any server.
Is this tool free? Yes, completely free with no login, no limits, and no watermarks.