Income tax calculator - FY 2025-26

What this calculator does

It computes your tax under both regimes for FY 2025-26 and shows the slab-by-slab arithmetic rather than a single number, so you can see where the tax is actually accruing. It applies the standard deduction, the Section 87A rebate, marginal relief near the rebate threshold, surcharge at the higher income levels, and 4% cess on top.

Enter your gross annual salary and, if you want the old regime compared honestly, your actual deductions. Leaving deductions blank makes the new regime look better than it is for anyone with a real 80C and HRA position.

The FY 2025-26 slabs

Both regimes add 4% health and education cess on the tax amount.

Why ₹12.75 lakh is the number people quote

Under the new regime, the Section 87A rebate cancels tax of up to ₹60,000 as long as taxable income is within ₹12 lakh. Salaried people also get a ₹75,000 standard deduction, so a gross salary of ₹12,75,000 lands at exactly ₹12 lakh taxable and pays nothing.

The rebate is a discount applied at the end, not a bigger nil slab. That distinction matters just above the threshold, where marginal relief caps your tax at the amount by which income crosses ₹12 lakh, so a ₹10,000 raise over the line costs roughly ₹10,000 rather than the ₹61,500 the slabs alone would produce. Full mechanics are in income up to ₹12 lakh explained.

Which regime wins

For most salaried people, the new one. The old regime only pulls ahead when deductions are large enough to offset its higher rates: roughly ₹6.5 lakh of total deductions at an ₹18 lakh salary, and around ₹8 lakh at ₹30 lakh. That means big metro HRA, ₹2 lakh of home loan interest, full 80C, NPS and 80D all stacked at once, not 80C alone.

Salaried taxpayers without business income can choose afresh each year at filing time, whatever they declared to their employer for TDS. The regime comparison guide works four salary levels end to end.

What the calculator does not include

• Capital gains, which are taxed at their own rates and are generally outside the 87A rebate.
• Income from house property, business income, and other heads.
• Advance tax and interest under sections 234B and 234C.

It is a salary tax calculator, so treat the output as a planning figure rather than a filed return. For anything unusual, confirm with a CA.

From tax to take-home

Income tax is one of three deductions between your gross salary and your bank credit, alongside provident fund and professional tax. To go all the way from CTC to a monthly number, use the in-hand salary calculator, or the in-hand salary by CTC pages for a quick read at a given LPA.