What is Income Tax Calculator?
An Income Tax Calculator for FY 2025-26 (AY 2026-27) helps Indian taxpayers calculate their exact tax liability, compare Old vs New Tax Regime, and plan tax-saving investments. This comprehensive tool calculates income tax based on your salary, deductions under Section 80C, 80D, HRA exemption, and other allowances. Get instant clarity on which regime saves you more money - the Old Regime with deductions or the New Regime with lower tax rates!
Formula
Tax = Sum of (Tax Slab Rate × Income in that Slab)
Old Regime Slabs: ₹2.5L (0%), ₹2.5-5L (5%), ₹5-10L (20%), >₹10L (30%)
New Regime Slabs: ₹3L (0%), ₹3-6L (5%), ₹6-9L (10%), ₹9-12L (15%), ₹12-15L (20%), >₹15L (30%)
Benefits of Using Income Tax Calculator
Old vs New Regime Comparison – See which saves you more tax
Section 80C Deductions – Include PPF, ELSS, life insurance premiums
HRA Exemption Calculator – Calculate house rent allowance benefits
Updated for FY 2025-26 – Latest tax slabs and rates included
Rebate Under 87A – ₹25,000 rebate for income up to ₹7 lakh
Cess & Surcharge – Accurate calculation including 4% health cess
Pro Tip: New Regime is better if you don't invest much in 80C. Old Regime is better if you have high deductions (>₹2.5 lakhs). Standard Deduction of ₹75,000 is available in New Regime from FY 2023-24!
Frequently Asked Questions
It depends on your deductions! If you invest heavily in 80C (PPF, ELSS, LIC), claim HRA, and have home loan interest, Old Regime usually saves more. If you have minimal deductions, New Regime with lower rates is better. Use our calculator to compare both side-by-side!
New Regime: 0% up to ₹3L, 5% (₹3-6L), 10% (₹6-9L), 15% (₹9-12L), 20% (₹12-15L), 30% above ₹15L. Old Regime: 0% up to ₹2.5L, 5% (₹2.5-5L), 20% (₹5-10L), 30% above ₹10L. Plus 4% health & education cess on total tax.
HRA exemption is the minimum of: (1) Actual HRA received, (2) 50% of salary for metro cities or 40% for non-metro, (3) Rent paid minus 10% of salary. Our calculator automatically applies this formula!
Section 80C allows deductions up to ₹1.5 lakh for: PPF, ELSS mutual funds, Life insurance premiums, EPF contributions, NSC, 5-year tax-saving FDs, home loan principal, tuition fees, and SSY (Sukanya Samriddhi Yojana).
Section 87A provides a tax rebate of ₹25,000 if your total taxable income is up to ₹7 lakh (in New Regime). This means if your tax is less than ₹25,000, you pay ZERO tax! Available in both regimes with different conditions.
Yes! Salaried individuals can switch between Old and New Regime every year while filing ITR. Business owners can switch only once. Choose the regime that saves you more tax each year!