Written & reviewed byNarasimha MakireddiLast reviewed How we verify

Estimates only — not financial advice. Results are estimates for education and planning. Consult a qualified financial advisor (CA, CFP, or SEBI-registered advisor) before any major financial decision. See how results are validated on our Verification Methodology page, or read the full Terms of Service.

About This Income Tax Calculator

This free income tax calculator computes your exact tax liability for FY 2025-26 (AY 2026-27) under both the New and Old regimes side-by-side, so you can see which one leaves more money in your hands. It handles salary income, house property, other sources, HRA exemption with metro/non-metro rules, and nine deduction categories including 80C, 80D, and home loan interest — using the slab rates from the Finance Act 2025.

Every April, lakhs of Indian employees are asked by their HR portal to pick a tax regime for the year — and most pick blindly. The choice is not trivial: for a typical ₹15 lakh salary, the gap between regimes can exceed ₹40,000 a year depending on how much you invest in 80C instruments, pay in rent, or pay as home loan interest. A Gurgaon renter claiming full HRA may save more in the Old regime, while a Bengaluru techie with no deductions is almost always better off in the New regime. This calculator answers that question with your actual numbers in under a minute.

Why You Need an Income Tax Calculator

Choosing the wrong regime is a silent, recurring cost — you pay the extra tax every single month through TDS and only notice (if ever) at filing time. The other common mistake is investing in tax-saving products you don't need: locking ₹1.5 lakh into an ELSS or PPF for 80C benefits is pointless if the New regime is already cheaper for you. Run both regimes here before your investment declaration, not after. For detailed guidance, read how to calculate income tax in India, our New vs Old regime comparison, and tax-saving strategies for salaried employees.

How to Use This Tax Calculator

  1. Gross Salary: Your total annual salary before any deductions — the CTC minus employer PF and gratuity, or simply the "gross" figure on your salary slip × 12.
  2. House Property / Other Sources: Add rental income or interest income (savings account, FDs) if any. Leaving out FD interest is the most common cause of a surprise tax demand later.
  3. HRA details (Old regime): Enter Basic Salary, HRA Received, annual Rent Paid, and select metro or non-metro city. The calculator applies the least-of-three HRA exemption rule automatically.
  4. Deductions (Old regime): Fill in 80C (PF, ELSS, LIC — capped at ₹1.5 lakh), 80D health insurance, home loan interest, NPS, and other applicable sections.
  5. Age group: Select your bracket — senior citizens get higher exemption limits under the Old regime.

The results panel shows tax under both regimes, the effective tax rate, and a clear verdict on which regime saves you more and by how much. Standard deduction (₹75,000 New / ₹50,000 Old) and the 4% health-and-education cess are applied automatically — do not subtract them yourself before entering your salary.

How Income Tax Is Calculated in India — FY 2025-26

India operates a slab-based income tax system under the Income Tax Act, 1961. For FY 2025-26, there are two parallel tax regimes: the New Tax Regime (default) with lower slab rates but no major deductions, and the Old Tax Regime with higher slab rates but access to exemptions under Section 80C, HRA, 80D, and others. Taxpayers can choose the regime more beneficial to them when filing returns.

New Regime Tax Slabs — FY 2025-26 (Finance Act 2025-26)

Salaried employees get a standard deduction of ₹75,000 under the new regime. Section 87A provides a full tax rebate for net taxable income up to ₹12,00,000 (₹12,75,000 for salaried after standard deduction).

Worked Example — New Regime

Gross salary ₹15,00,000 for a salaried individual with no special deductions:

Under the Old Regime with ₹1.5L 80C + ₹25,000 80D + ₹50,000 standard deduction, total deductions can reach ₹2.25 lakh, reducing taxable income and potentially saving ₹20,000–₹40,000 in tax. Use the calculator to compare both regimes for your exact situation.

Real-World Tax Examples

Ananya, 27, Bengaluru — ₹12.75 lakh salary, no investments

Ananya rents a flat but has no 80C investments or health insurance. Under the New regime, the ₹75,000 standard deduction brings her taxable income to ₹12 lakh — fully covered by the Section 87A rebate, so her tax is zero. Under the Old regime she would owe well over ₹1 lakh. Verdict: New regime, and no need to lock money into tax-saving products she doesn't want.

Rajesh, 41, Delhi — ₹18 lakh salary, heavy deductions

Rajesh pays ₹25,000/month rent, invests the full ₹1.5 lakh in 80C, pays ₹28,000 for family health insurance (80D), and contributes ₹50,000 to NPS. With HRA exemption plus ₹2.28 lakh of deductions, his Old-regime taxable income drops sharply — the calculator shows the Old regime beating the New by roughly ₹15,000–30,000 depending on his exact HRA figures. Takeaway: high rent + maxed deductions is the classic Old-regime profile; always verify with your own numbers.

Accuracy & Common Questions

Is this tax calculator accurate for FY 2025-26?

Yes — slab rates, the ₹75,000 standard deduction, Section 87A rebate, marginal relief, and the 4% cess follow the Finance Act 2025 as published by the Income Tax Department. It is an estimate for planning; your final liability can differ with capital gains, surcharge above ₹50 lakh, or employer-specific perquisites.

Can I switch between the New and Old regime every year?

Salaried taxpayers can choose either regime each year when filing their return, regardless of what they told their employer (the employer choice only affects monthly TDS). Business income earners have restrictions on switching back after opting out of the New regime.

When should I use this instead of the retirement calculator?

Use this calculator for your current-year tax liability and regime choice. For long-term planning — how much corpus you need and how tax-advantaged instruments like NPS fit in — use our retirement calculator.