Income Tax Calculator

In five steps. First, add up all income taxed at slab rates — salary, interest, rent, professional fees. Second, subtract the deductions your regime allows: the standard deduction in both regimes, plus 80C, 80D, HRA and home-loan interest in the old one. What remains is your taxable income. Third, apply the slab rates progressively — only the income inside each slab is taxed at that slab's rate. Fourth, subtract the section 87A rebate if you qualify. Fifth, add any surcharge, then 4% health and education cess on the total. The breakdown on this page shows each of those steps with its own figure.

It is a rebate that cancels your tax outright if your taxable income is below a threshold, and it is applied automatically — there is nothing to claim and no field to fill in. For FY 2025-26 the new regime gives up to ₹60,000 of rebate on taxable income up to ₹12,00,000, which is why a salary of ₹12.75 lakh comes out at zero tax once the ₹75,000 standard deduction is applied. The old regime gives up to ₹12,500 on taxable income up to ₹5,00,000. For FY 2024-25 the new regime figure was ₹25,000 up to ₹7,00,000.

Marginal relief protects you, under the new regime. Without it, one rupee over ₹12,00,000 would cost about ₹60,000 in tax. Instead your income tax is capped at the amount by which your income exceeds the limit — earn ₹12,10,000 and the tax is ₹10,000, not ₹61,500. One wrinkle: the 4% cess is charged on top of that capped figure, so take-home dips by a few hundred rupees across the relief band before recovering at about ₹12.75 lakh. The old regime has no marginal relief on 87A, so its ₹5,00,000 limit is a genuine cliff.

Whichever costs less, which depends entirely on the deductions you genuinely claim rather than intend to. The new regime has lower rates, a wider rebate and a ₹75,000 standard deduction, but allows almost nothing else. The old regime taxes at higher rates but allows 80C, 80D, 80CCD(1B), HRA and home-loan interest. This calculator runs both on your figures and tells you the difference; as a rough guide, the old regime starts winning once you claim somewhere around ₹4 lakh to ₹5 lakh of deductions, but check it against your own numbers rather than the rule of thumb.

Under the old regime, yes. The basic exemption is ₹2,50,000 below 60, ₹3,00,000 for senior citizens aged 60 to 79, and ₹5,00,000 for super seniors aged 80 and above — which removes the 5% band entirely. Seniors also get a larger 80D ceiling of ₹50,000 and can claim 80TTB on interest income at ₹50,000 instead of the ₹10,000 under 80TTA. The new regime applies one set of slabs to everyone regardless of age.

The standard deduction of ₹75,000 on salary, and the employer's contribution to NPS under section 80CCD(2) — up to 14% of basic salary, against 10% in the old regime. That employer NPS deduction is the one meaningful planning lever the new regime leaves open, and it is often overlooked. Everything else — 80C, 80D, 80CCD(1B), HRA, home-loan interest on a self-occupied property — is old regime only.

Health and education cess, charged at 4% on the tax plus any surcharge. It applies under both regimes and to everyone, so the headline slab rate always understates the real cost slightly. It is charged after the 87A rebate, not before.

On taxable income above ₹50 lakh: 10% above ₹50 lakh, 15% above ₹1 crore and 25% above ₹2 crore. The old regime adds a 37% band above ₹5 crore; the new regime caps surcharge at 25%. Marginal relief applies at each threshold, so crossing one can never cost more in extra tax than the extra income that crossed it.

No. Capital gains, lottery winnings and similar income are taxed at their own rates rather than at slab rates, and are calculated separately. The section 87A rebate does not apply to them either. Enter only income taxed at slab rates — salary, interest, rent, professional fees.

It is an estimate for planning, built on the slab rates, rebate thresholds, deduction ceilings and surcharge bands enacted for the year you select, and its calculation logic is covered by a suite of worked test cases. It does not model losses carried forward, clubbing of income, relief under sections 89, 90 or 91, or income taxed at special rates. Check the result against your Form 16 or a qualified adviser before relying on it.