Income Tax Calculator
Estimate your Indian income tax under the new and old regimes for FY 2025-26 (AY 2026-27).
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Ready when you are
Adjust the inputs on the left to see your tax payable (incl. 4% cess).
Two regimes, one decision
Before any number, India hands you a choice: the old tax regime or the new one. The old regime has higher slab rates but lets you claim deductions like 80C investments, HRA, and home loan interest. The new regime offers lower slab rates and a bigger basic exemption, but strips away most of those deductions. Neither wins for everyone. It genuinely depends on how much you claim.
This calculator helps you compare. Enter your income and the deductions you actually use, and it estimates tax under both regimes so you can see which one leaves more in your hand.
How the slabs work
Income tax is not a flat percentage on your whole salary. It is tiered. Each slab of income is taxed at its own rate, and only the income inside that band pays that rate. So a higher salary does not suddenly tax all your money at the top rate, only the portion that crosses into the higher band. A health and education cess is then added on top of the computed tax.
A worked comparison
Picture a salaried person in Pune earning 12,00,000 a year who invests 1,50,000 under 80C and pays 2,00,000 in home loan interest.
Under the old regime, those deductions pull taxable income down to around 8,50,000 before the standard deduction, which trims the tax meaningfully. Under the new regime, the deductions vanish, but the lower rates and a rebate for moderate incomes can still come out ahead. For someone with heavy deductions like this, the old regime often wins. For someone who claims almost nothing, the new regime usually does.
The point is not the exact rupee figure. It is that the right regime can swing your tax bill by tens of thousands, purely based on what you claim.
Before you rely on the number
A few honest caveats:
- Slabs, the rebate limit, and the standard deduction get revised in most Union Budgets. Confirm the figures for your assessment year before filing.
- This tool estimates tax on salary-type income. Capital gains, business income, and other heads follow their own rules and rates.
- Your final liability also depends on TDS already deducted, advance tax paid, and any refunds due.
Treat the result as a planning estimate to choose a regime and budget your savings, not as a filed return. For anything complex, a chartered accountant earns their fee.
Income Tax Calculator — frequently asked questions
Which is better, the old or new tax regime?
It comes down to deductions. If you claim a lot, like 80C investments, HRA, and home loan interest, the old regime often saves more despite its higher rates. If you claim little, the new regime usually wins thanks to lower rates and a larger exemption. Compare both with your actual numbers, since the gap can run into tens of thousands.
How do income tax slabs actually work?
Slabs are tiered, not flat. Each band of income is taxed only at its own rate, so crossing into a higher slab does not tax your entire salary at that higher rate, only the part above the threshold. A cess is then added on the computed tax. This is why a raise never leaves you with less money overall.
What deductions does the new regime remove?
The new regime drops most popular deductions, including 80C investments, HRA exemption, and many others available under the old system. In return it offers lower slab rates and a higher basic exemption. The standard deduction for salaried taxpayers has been allowed in the new regime in recent years, but confirm the current rules for your assessment year.
Do I pay tax on my entire salary?
No. You pay tax on taxable income, which is your salary minus the standard deduction and any eligible deductions, depending on your regime. Income below the basic exemption is not taxed at all, and a rebate can make moderate incomes effectively tax-free. So your real tax outgo is almost always far less than a flat rate on gross salary.
Can I switch between the two regimes each year?
Salaried taxpayers without business income can generally choose afresh each year when filing, picking whichever regime suits that year. Those with business income face tighter switching rules. Your employer also asks for your choice for TDS purposes, but you can still change it at filing if the other regime works out better. Confirm the current rules before deciding.
Is this calculator enough to file my return?
It gives a solid estimate for choosing a regime and planning your savings, but it is not a filed return. It focuses on salary-type income and assumes standard slabs. Capital gains, business income, TDS already deducted, and advance tax all affect your final figure. For anything beyond a simple salary, a chartered accountant is worth the cost.
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Results from this calculator are estimates for informational use only — not financial, medical, or professional advice. Read our full disclaimer before acting on any number you see here.