What is Income Tax?
The Income Tax Calculator helps you compute your exact tax liability under BOTH the Old and New Tax Regimes for FY 2025-26 (AY 2026-27). Switch between regimes using the 'Regime' field to instantly compare which one saves you more tax.
**New Regime (Default):** Lower tax rates (0% up to ₹4L, then 5%, 10%, 15%, 20%, 25%, 30%) but almost no deductions. Standard deduction of ₹75,000 and NPS 80CCD(1B) of ₹50,000 are the only major deductions allowed. Income up to ₹12,75,000 (₹12L taxable after ₹75K standard deduction) is effectively tax-free due to Section 87A rebate.
**Old Regime:** Higher tax rates (0% up to ₹2.5L, 5%, 20%, 30%) but allows all deductions — Section 80C (₹1.5L for EPF, PPF, ELSS, LIC), Section 80D (₹25K-₹1L medical insurance), HRA exemption, Home Loan interest (₹2L under Section 24), NPS, 80G (donations), 80E (education loan interest), 80TTA (savings account interest up to ₹10K), and more.
**Which regime is better?** The Old Regime is better if your total deductions exceed approximately ₹3.75 Lakhs. This is common for salaried employees who pay rent (HRA), have a home loan, invest in 80C instruments, and have medical insurance. The New Regime is better for those with fewer deductions — especially young professionals without home loans or HRA.
**Senior citizens (60-79 years)** get a higher basic exemption of ₹3L in the Old Regime. **Super senior citizens (80+)** get ₹5L exemption and are exempt from 5% slab entirely in the Old Regime. In the New Regime, age-based exemptions do not apply.
This calculator applies to Individuals and HUF (Hindu Undivided Family), which share the same tax slabs. For HUF-specific calculations, use our HUF Tax Calculator.
Also check our Salary Calculator for CTC-to-in-hand conversion, HRA Calculator for rent exemption, and EPF Calculator for retirement planning.
Formula
**New Regime Tax Slabs (FY 2025-26):** ₹0 – ₹4,00,000: 0% ₹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% Standard Deduction: ₹75,000 Rebate u/s 87A: Full rebate if taxable ≤ ₹12L **Old Regime Tax Slabs (FY 2025-26):** ₹0 – ₹2,50,000: 0% (₹3L for seniors, ₹5L for super seniors) ₹2,50,001 – ₹5,00,000: 5% ₹5,00,001 – ₹10,00,000: 20% Above ₹10,00,000: 30% Standard Deduction: ₹50,000 Rebate u/s 87A: Full rebate if taxable ≤ ₹5L **Surcharge (Old Regime, income > ₹50L):** ₹50L–₹1Cr: 10% | ₹1Cr–₹2Cr: 15% | ₹2Cr–₹5Cr: 25% | Above ₹5Cr: 37% **Worked Example — ₹15L salary:** *New Regime:* Taxable = ₹15L − ₹75K − ₹50K NPS = ₹13,75,000 Tax = 0 + ₹20K + ₹40K + ₹26,250 = ₹86,250 + Cess ₹3,450 = ₹89,700 *Old Regime (max deductions):* Taxable = ₹15L − ₹50K − ₹1.5L − ₹25K − ₹50K − ₹2L(HRA) = ₹10,25,000 Tax = 0 + ₹12,500 + ₹1,05,000 + ₹7,500 = ₹1,25,000 + Cess ₹5,000 = ₹1,30,000 **In this example, New Regime saves ₹40,300.** But if deductions were lower, Old Regime might win.
How to use this Income Tax Calculator?
1. **Enter Annual Income:** Your gross salary (CTC minus employer PF and gratuity). For business income, enter total business income.
2. **Select Regime:** 1 = New Regime (default, lower rates, fewer deductions). 2 = Old Regime (higher rates, all deductions available).
3. **Select Age:** Affects Old Regime exemption. Below 60: ₹2.5L exempt. Senior (60-79): ₹3L. Super Senior (80+): ₹5L.
4. **Enter Deductions (for Old Regime):** - 80C: EPF + PPF + ELSS + LIC + tuition fees (max ₹1.5L) - 80D: Health insurance premium (₹25K self, ₹25K parents, ₹50K for senior parents) - HRA: Use our HRA Calculator to compute exact exemption - Home Loan: Interest paid under Section 24 (max ₹2L for self-occupied) - NPS: 80CCD(1B) up to ₹50K (available in BOTH regimes) - Others: 80G donations, 80E education loan interest, 80TTA savings interest
5. **Compare:** Run once with Regime=1, note the tax. Then change to Regime=2, note the tax. Choose the lower one.
Pro tip: For salaried employees, your employer deducts TDS monthly. Inform them of your preferred regime at the start of the financial year.