Income Tax Calculator (FY 2025-26)

The rates on this page are for FY 2025-26 (assessment year 2026-27), from the Budget of February 2025. Slabs move almost every Budget. If you are estimating for FY 2026-27, check what changed in February 2026 before trusting any figure here.

The FY 2025-26 slabs, both regimes

Type in your gross annual income, pick a regime, and if it is the old regime add up your deductions (80C, 80D, home loan interest, everything under Chapter VI-A) into one box. The last question, salaried or not, decides whether you get the standard deduction. Business and professional income does not.

New regime, the default since FY 2023-24:

Taxable income	Rate
Up to ₹4,00,000	Nil
₹4,00,001 to ₹8,00,000	5%
₹8,00,001 to ₹12,00,000	10%
₹12,00,001 to ₹16,00,000	15%
₹16,00,001 to ₹20,00,000	20%
₹20,00,001 to ₹24,00,000	25%
Above ₹24,00,000	30%

Standard deduction ₹75,000. Section 87A rebate wipes out the tax when taxable income is ₹12,00,000 or less, up to ₹60,000.

Old regime, with deductions:

Taxable income	Rate
Up to ₹2,50,000	Nil
₹2,50,001 to ₹5,00,000	5%
₹5,00,001 to ₹10,00,000	20%
Above ₹10,00,000	30%

Standard deduction ₹50,000. Section 87A rebate up to ₹12,500 when taxable income is ₹5,00,000 or less.

Health and education cess is 4% of the tax under both. Surcharge starts above ₹50 lakh of taxable income.

₹15 lakh through both regimes

The calculator’s default is a salaried person on ₹15,00,000 gross with nothing to deduct. New regime first.

Taxable income is ₹15,00,000 minus the ₹75,000 standard deduction, so ₹14,25,000. Deductions play no part.

₹4,00,000 to ₹8,00,000    @  5%  =   ₹20,000
₹8,00,000 to ₹12,00,000   @ 10%  =   ₹40,000
₹12,00,000 to ₹14,25,000  @ 15%  =   ₹33,750
                          slab tax   ₹93,750
                          4% cess     ₹3,750
                          TOTAL      ₹97,500

Total tax payable	₹97,500
Taxable income	₹14,25,000
Section 87A rebate	₹0
Health and education cess	₹3,750
Monthly TDS	₹8,125
Effective tax rate	6.50%

The monthly TDS line is what a payroll team would cut from each salary if they had nothing else to go on. Your actual Form 16 will differ if you joined mid-year, declared other income, or changed regimes in the investment declaration.

Now the same person under the old regime. With no deductions at all, taxable income is ₹14,50,000 and the tax comes to ₹2,57,400, an effective rate of 17.16%. Give them ₹2,00,000 of deductions (a full 80C plus some 80D) and taxable income drops to ₹12,50,000: slab tax ₹1,87,500, cess ₹7,500, total ₹1,95,000.

	New regime	Old regime, ₹2 lakh deductions
Taxable income	₹14,25,000	₹12,50,000
Total tax	₹97,500	₹1,95,000
Effective rate	6.50%	13.00%

The new regime is ₹97,500 cheaper, exactly half, even though it taxes a higher income. The old regime’s 20% band starting at ₹5 lakh and 30% at ₹10 lakh is what kills it; the new regime does not reach 30% until ₹24 lakh.

The ₹12 lakh rebate, and the cliff behind it

Under the new regime, taxable income up to ₹12,00,000 pays nothing because section 87A rebates the whole tax. Add the standard deduction and a salaried person on ₹12,75,000 gross pays zero. Run it in the calculator: slab tax ₹60,000, rebate ₹60,000, total nil.

Above that line the rebate disappears completely. Not tapered, gone. Someone on ₹12,85,000 gross has taxable income of ₹12,10,000 and would owe ₹61,500 of slab tax on a ₹10,000 raise, if that were the end of the story.

Marginal relief is the end of the story. It caps the tax at the amount by which taxable income exceeds ₹12,00,000. So the ₹12,85,000 earner pays ₹10,000 plus 4% cess, ₹10,400, and keeps most of the raise. At ₹13,00,000 gross the calculator gives ₹26,000. The relief fades out around ₹12,75,000 of taxable income, where normal slab tax falls below the excess anyway. Several bank and payroll calculators I have checked skip this step and show the cliff; this one applies it.

The practical point for anyone negotiating an appraisal around ₹13 lakh: the raise is not worthless, but between ₹12.75 lakh and roughly ₹13.5 lakh of gross a large share of each extra rupee goes to tax. Ask for the employer NPS contribution under 80CCD(2) instead, which stays deductible in the new regime.

Picking a regime, and where Form 16 will disagree

The new regime wins for most salaried people now. The old regime only pulls ahead when the deductions are genuinely large, and at ₹15 lakh the crossover sits somewhere above ₹3.5 to ₹4 lakh of deductions. In practice that means a full ₹1,50,000 under 80C, plus ₹2,00,000 of home loan interest on a self-occupied flat, plus a meaningful HRA exemption, plus 80D. Two of those four is usually not enough. Run both here with your real numbers rather than trusting the rule of thumb; the take-home salary calculator shows the same comparison as an in-hand monthly figure, which is easier to feel.

What you give up in the new regime: 80C, 80D, HRA, LTA, home loan interest on a self-occupied property, and the professional tax deduction. What you keep: the standard deduction and the employer’s NPS contribution.

Salaried people with no business income can switch regimes every year at filing time. Your employer’s choice in April is only for TDS purposes; the ITR is where it is decided. Business income is stickier, with a once-in-a-lifetime switch back.

Things this calculator does not do, and where the number on your Form 16 or the ITR portal will part ways with it:

• Capital gains. Equity, mutual fund and property gains are taxed at their own rates and are not in the slab working. A big redemption from a Groww or Zerodha account can be more tax than a year of salary.
• Surcharge marginal relief at ₹50 lakh and ₹1 crore. The basic surcharge is applied; the relief that softens those steps is not.
• Deduction sub-limits. 80D depends on age and who is covered, 80C has its own list, home loan interest is capped at ₹2,00,000 on a self-occupied house. The box here takes whatever total you type.
• Section 89 relief for arrears, and anything involving foreign income or a second employer’s Form 16.
• Interest income. Savings and FD interest is added to your income and taxed at slab rates; the bank’s 10% TDS is rarely the whole liability. The FD calculator shows the interest to add.

TDS is an estimate, not the final tax. If your employer did not know about your FD interest or your last job, you settle the difference as self-assessment tax before filing in July, with interest under 234B and 234C if the shortfall is big. If they deducted too much, the refund comes after processing, usually within a few weeks of e-verification.

Check the financial year at the top of this page against the one you are filing for. The calculator and this article carry the same constant precisely so a stale year cannot pass as a current one.