Income Tax Calculator India
Compare the new and old tax regimes for FY 2025-26 side by side — slabs, 87A rebate, surcharge, cess and which regime saves you more.
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FY 2025-26 (AY 2026-27)
= ₹15 lakh
PF, PPF, ELSS, LIC, tuition fees, home-loan principal — max ₹1,50,000
Exempt part of HRA — use the HRA calculator
Max ₹25,000
Max ₹25,000
Self-occupied house — max ₹2,00,000
Own extra NPS contribution — max ₹50,000
80E, 80G, 80TTA/TTB, professional tax, etc.
Up to 14% of basic + DA (new) / 10% (old)
Verdict for FY 2025-26 (AY 2026-27)
The new regime saves you ₹1,05,300
New regime: ₹97,500 · Old regime: ₹2,02,800
New vs old regime, side by side
Figures for the full financial year
| New ✓ | Old | |
|---|---|---|
| Gross income | ₹15,00,000 | ₹15,00,000 |
| Standard deduction | − ₹75,000 | − ₹50,000 |
| Exemptions & deductions | − ₹0 | − ₹1,75,000 |
| Taxable income | ₹14,25,000 | ₹12,75,000 |
| Tax on slabs | ₹93,750 | ₹1,95,000 |
| Rebate u/s 87A | − ₹0 | − ₹0 |
| Health & education cess (4%) | ₹3,750 | ₹7,800 |
| Total tax payable | ₹97,500 | ₹2,02,800 |
| Effective tax rate | 6.50% | 13.52% |
| Monthly tax (TDS) | ₹8,125 | ₹16,900 |
| Income after tax / month | ₹1,16,875 | ₹1,08,100 |
New regime — slab-wise tax
| Slab | Rate | Tax |
|---|---|---|
| ₹0 – ₹4 lakh | 0% | ₹0 |
| ₹4 lakh – ₹8 lakh | 5% | ₹20,000 |
| ₹8 lakh – ₹12 lakh | 10% | ₹40,000 |
| ₹12 lakh – ₹16 lakh | 15% | ₹33,750 |
Old regime — slab-wise tax
| Slab | Rate | Tax |
|---|---|---|
| ₹0 – ₹2.5 lakh | 0% | ₹0 |
| ₹2.5 lakh – ₹5 lakh | 5% | ₹12,500 |
| ₹5 lakh – ₹10 lakh | 20% | ₹1,00,000 |
| Above ₹10 lakh | 30% | ₹82,500 |
How to use the Income Tax (India)
Enter your annual gross salary (CTC minus employer PF and gratuity, or simply the gross on your Form 16) and any other income such as savings or FD interest and rent. Choose your age group, because the old regime gives seniors a higher exemption limit.
Then add the deductions you can claim. They only reduce tax in the old regime, except employer NPS contribution (80CCD(2)), which both regimes allow. Not sure about HRA? Work it out with the HRA calculator and paste the exempt amount here.
The calculator shows both regimes side by side, the slab-wise tax, rebate, surcharge and cess, and tells you which regime costs less and by how much. It also shows the break-even deductions — how much you would need to claim before the old regime wins.
Formula
FY 2025-26 (AY 2026-27) — new regime (Section 115BAC, default): ₹0–4L nil · 4–8L 5% · 8–12L 10% · 12–16L 15% · 16–20L 20% · 20–24L 25% · above 24L 30%. Standard deduction ₹75,000 for salaried individuals and pensioners. Rebate u/s 87A up to ₹60,000 makes taxable income up to ₹12 lakh tax-free; just above ₹12 lakh, marginal relief limits the tax to the income above ₹12 lakh.
Old regime: ₹0–2.5L nil (₹3L for age 60–79, ₹5L for 80+) · 2.5–5L 5% · 5–10L 20% · above 10L 30%. Standard deduction ₹50,000. Rebate u/s 87A up to ₹12,500 if taxable income is ₹5 lakh or less. Deductions: 80C up to ₹1.5L, 80D (₹25k/₹50k self, ₹25k/₹50k parents), 80CCD(1B) up to ₹50k, home-loan interest 24(b) up to ₹2L, HRA exemption.
Tax = Slab tax − 87A rebate (− marginal relief) + Surcharge + 4% Health & Education CessSurcharge on tax: 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore, 37% above ₹5 crore (old regime only; the new regime caps surcharge at 25%). Marginal relief ensures the extra tax from crossing a surcharge threshold never exceeds the extra income.
Example: salary ₹12,75,000 → new regime taxable income ₹12,00,000 → slab tax ₹60,000 − rebate ₹60,000 = ₹0.
Simplified: assumes all income is taxed at slab rates (no capital gains taxed at special rates) and ignores rounding of income to the nearest ₹10 under Section 288A/288B.
History & interesting facts
Did you know?
Thanks to the ₹75,000 standard deduction and the enlarged 87A rebate, a salaried person earning up to ₹12.75 lakh a year pays zero income tax under the new regime for FY 2025-26.
Fascinating facts
- 1
The new regime became the default from FY 2023-24 — if you do not tell your employer otherwise, TDS is deducted under the new regime.
- 2
Salaried employees can switch between regimes every year when filing their return. Those with business income can switch back to the old regime only once.
- 3
Health and Education Cess of 4% replaced the earlier 2% education cess and 1% secondary & higher education cess in 2018.
Frequently asked questions
Which tax regime is better for a 10 lakh salary?
For a ₹10 lakh salary in FY 2025-26 the new regime is almost always better: taxable income is ₹9.25 lakh after the ₹75,000 standard deduction and the 87A rebate makes the tax zero. Under the old regime, even with the full ₹1.5 lakh 80C deduction the tax is about ₹75,400; you would need about ₹4.5 lakh of deductions beyond the standard deduction to bring old-regime tax to zero.
Is income up to 12 lakh tax-free in the new regime?
Yes, for resident individuals. Taxable income up to ₹12 lakh attracts no tax because of the Section 87A rebate of up to ₹60,000. Salaried people also get the ₹75,000 standard deduction, so a salary of up to ₹12.75 lakh is tax-free. The rebate does not apply to special-rate income such as capital gains on shares.
What happens if my income is slightly above 12 lakh?
Marginal relief applies: your tax cannot exceed the amount by which your taxable income exceeds ₹12 lakh. For example, at ₹12,10,000 taxable income the tax is limited to ₹10,000 (plus 4% cess) instead of ₹61,500. The relief stops mattering at about ₹12.7 lakh.
Which tax regime is better for a 15 lakh salary?
It depends on your deductions. On a ₹15 lakh salary the new regime tax is about ₹97,500. The old regime is cheaper only if your deductions beyond the ₹50,000 standard deduction exceed roughly ₹5.44 lakh (for example 80C, 80D, HRA, home-loan interest and NPS together). Enter your numbers above to see your break-even.
What deductions are allowed in the new tax regime?
Very few: the ₹75,000 standard deduction for salaried people and pensioners, the employer’s contribution to NPS under Section 80CCD(2) (up to 14% of basic plus DA), family pension deduction and a few others. 80C, 80D, HRA, LTA and home-loan interest on a self-occupied house are not allowed.
Can I switch between old and new tax regime?
Salaried individuals without business income can choose either regime every year at the time of filing their income tax return, regardless of what they told their employer. Taxpayers with business or professional income can opt out of the new regime and return to it only once.
How is surcharge calculated on income tax?
Surcharge is an extra percentage of the income tax: 10% if taxable income exceeds ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore and 37% above ₹5 crore in the old regime. Under the new regime the maximum surcharge is 25%. Marginal relief applies just above each threshold, and 4% cess is then charged on tax plus surcharge.