Income Tax Calculator India 2025-26
Calculate your income tax under the New Regime or Old Regime for FY 2024-25. Compare both to choose the best option.
What Is an Income Tax Calculator?
An income tax calculator is a free online tool that estimates your annual income tax liability based on your earnings, deductions, and exemptions. It uses the latest tax slabs and rules for the financial year to compute your tax accurately under both the Old Tax Regime and the New Tax Regime introduced by the Indian government.
This calculator helps salaried individuals, business owners, freelancers, and senior citizens make informed decisions about tax planning. Compare both regimes, claim available deductions, and optimize your tax outflow — all without sharing personal data or signing up.
For investment-related tax planning, also use our Interest Calculator for FD tax implications, and Loan Calculator for home loan tax benefits under Section 80C and 24(b).
Income Tax Slabs FY 2025-26 (AY 2026-27)
The Government of India offers two parallel tax regimes. Choose the one that minimizes your total tax liability.
New Tax Regime (Default from FY 2023-24)
The New Tax Regime offers lower tax rates but eliminates most deductions and exemptions. It's the default option unless you explicitly opt out.
| Income Range | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹7,00,000 | 5% |
| ₹7,00,001 – ₹10,00,000 | 10% |
| ₹10,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Key Benefits: Standard deduction of ₹75,000 for salaried individuals (raised from ₹50,000 in Budget 2024), rebate under Section 87A available for total income up to ₹7 lakh (making tax effectively zero).
Old Tax Regime
The Old Tax Regime has higher tax rates but allows numerous deductions and exemptions that can significantly reduce taxable income.
| Income Range | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Key Benefits: Standard deduction ₹50,000, rebate under Section 87A for income up to ₹5 lakh, plus numerous deductions (Section 80C up to ₹1.5 lakh, 80D for health insurance, 24(b) for home loan interest, HRA exemption, LTA exemption, etc.).
Old vs New Tax Regime: Which One to Choose?
This is the most common question. The answer depends on your investments and deductions:
Choose New Regime if:
- You have minimal investments under Section 80C (less than ₹1.5 lakh annually)
- You don't pay rent (live in own home or with family)
- No home loan interest deductions to claim
- Your salary structure has minimal allowances (HRA, LTA)
- You prefer simplicity over deductions
- Income below ₹7 lakh (tax becomes zero under Section 87A rebate)
Choose Old Regime if:
- You actively invest in tax-saving instruments (PPF, ELSS, Insurance)
- You pay significant rent and can claim HRA
- You have a home loan (Section 24b interest up to ₹2 lakh deduction)
- You have health insurance premiums (Section 80D up to ₹75,000)
- You have significant medical expenses for senior citizen parents
- Your total deductions exceed ₹3.5 lakh annually
Break-even Analysis
For most salaried individuals, the break-even point is approximately ₹3-4 lakh in deductions. If your deductions exceed this, Old Regime usually wins. Below this, New Regime is better.
| Gross Salary | New Regime Tax | Old Regime Tax (with deductions) | Better Regime |
|---|---|---|---|
| ₹5 lakh | ₹0 | ₹0 | Either |
| ₹7 lakh | ₹0 | ₹33,800 | New |
| ₹10 lakh | ₹54,600 | ₹72,800 | New |
| ₹15 lakh | ₹1,40,400 | ₹1,72,250 | New |
| ₹25 lakh | ₹4,50,200 | ₹4,28,000 | Old (with high deductions) |
Major Deductions Available (Old Regime Only)
The Old Regime allows numerous deductions. Maximizing these can significantly reduce your tax outflow:
- Section 80C (₹1,50,000): PPF, ELSS mutual funds, EPF, NSC, life insurance premiums, home loan principal, children's tuition fees, Sukanya Samriddhi
- Section 80D (₹25,000 + ₹50,000): Health insurance premiums for self/family and senior citizen parents
- Section 24(b) (₹2,00,000): Home loan interest deduction for self-occupied property
- Section 80E: Education loan interest (full amount, no upper limit, for 8 years)
- Section 80G: Donations to specified charitable institutions (50% or 100%)
- Section 80TTA: ₹10,000 deduction on savings account interest
- Section 80TTB: ₹50,000 for senior citizens on interest income
- Section 80EEA: Additional ₹1.5 lakh for first-time homebuyers on affordable housing
- HRA Exemption: Based on rent paid, salary, and city
- LTA Exemption: Leave Travel Allowance for domestic travel (twice in 4 years)
For home loan-specific tax benefits, see our Mortgage Calculator.
How to Use This Income Tax Calculator
- Enter Your Annual Income — Total salary, business income, or other taxable earnings
- Select Tax Regime — Old or New (or compare both)
- Add Deductions (Old Regime only) — 80C investments, 80D, home loan interest, HRA, etc.
- Enter Age Bracket — Below 60, Senior Citizen (60-80), Super Senior (80+)
- View Results — Tax liability, net take-home, surcharge, and cess
The calculator includes the 4% Health and Education Cess and applicable surcharges for high-income individuals.
Surcharge and Cess: The Hidden Tax Add-ons
Beyond standard tax slabs, additional levies apply to higher incomes:
Health and Education Cess (4%): Applied to total tax + surcharge. This is universal across both regimes.
Surcharge: Additional tax on the income tax amount itself, applicable when total income exceeds:
- ₹50 lakh to ₹1 crore: 10% surcharge
- ₹1 crore to ₹2 crore: 15% surcharge
- ₹2 crore to ₹5 crore: 25% surcharge (Old Regime), 25% (New Regime)
- Above ₹5 crore: 37% surcharge (Old Regime), 25% capped (New Regime)
The New Regime caps maximum surcharge at 25%, making it more attractive for ultra-high-income individuals.
Tax Calculations for Senior Citizens
Senior citizens enjoy higher exemption limits under the Old Regime:
- Senior Citizens (60-80 years): Basic exemption ₹3,00,000
- Super Senior Citizens (80+ years): Basic exemption ₹5,00,000
- Section 80TTB: ₹50,000 deduction on interest from FDs and savings
- Section 80D: Higher limit of ₹50,000 for health insurance
- Section 80DDB: ₹1,00,000 deduction for specified illnesses
Under the New Regime, age-based exemptions don't apply — all citizens follow the same slabs.
Global Income Tax Comparison
How does Indian income tax compare globally? Here's a rough comparison for ₹15 lakh equivalent annual income:
| Country | Top Marginal Rate | Tax on ₹15L equivalent |
|---|---|---|
| India | 30% + cess | ~₹1.4 lakh (New) |
| USA | 37% + state tax | ~22% effective |
| UK | 45% | ~20% effective |
| Singapore | 22% | ~7% effective |
| UAE | 0% | No tax |
Frequently Asked Questions
What is the basic exemption limit for FY 2025-26?
₹3,00,000 under New Tax Regime, ₹2,50,000 under Old Tax Regime. For senior citizens (60-80 years), Old Regime exemption is ₹3,00,000. For super seniors (80+), it's ₹5,00,000.
Which tax regime is better for FY 2025-26?
New Regime suits most salaried individuals without significant deductions, especially those earning up to ₹15 lakh. Old Regime works better if you have HRA, home loan interest, and 80C investments totaling above ₹3.5-4 lakh.
Is there a 4% cess?
Yes. Health and Education Cess of 4% is added on total tax payable (after surcharge if applicable). This is universal across both regimes.
Is income up to ₹7 lakh tax-free?
Yes under New Regime. Section 87A rebate makes tax zero for total income up to ₹7,00,000 in New Regime. Under Old Regime, the rebate applies only up to ₹5,00,000.
Can I switch between regimes every year?
Yes for salaried individuals (without business income). Business owners can switch only once in their lifetime and cannot reverse the decision.
What is the standard deduction for FY 2025-26?
₹75,000 under New Regime (raised from ₹50,000 in Budget 2024). ₹50,000 under Old Regime. Available to salaried employees and pensioners.
Are PPF and EPF taxable?
PPF contributions, interest, and withdrawals are fully tax-free (EEE status). EPF is tax-free if held for 5+ continuous years; otherwise taxable. Both eligible for Section 80C deduction under Old Regime.
How are mutual fund gains taxed?
Equity funds: LTCG (held >1 year) taxed at 12.5% above ₹1.25 lakh annually. STCG (held <1 year) taxed at 20%. Debt funds: All gains taxed at slab rates from FY 2023-24 onwards.
Do NRIs pay income tax in India?
Yes, NRIs pay tax on income earned/received in India (rental, interest, capital gains). Income earned abroad is generally tax-free in India for NRIs. DTAA (Double Tax Avoidance Agreements) prevent double taxation.
What is TDS and how does it work?
Tax Deducted at Source (TDS) is tax withheld by the payer before paying you. Employers deduct TDS on salary monthly. Banks deduct 10% TDS on FD interest above ₹40,000 (₹50,000 for seniors). TDS is adjustable against your final tax liability.