Income Tax Calculator (FY 2026-27, FY 2025-26, FY 2024-25 & FY 2023-24)
Compare Old vs New Tax Regime with Income-tax Act, 2025 & Budget 2025 rules, ₹12 Lakh zero-tax rebate, ₹75,000 standard deduction, and surcharge marginal relief.
Gross salary before deductions (Form 16 Part B)
Interest, freelance, or other taxable income
Old Regime Deductions
EPF, PPF, ELSS, Life Insurance (Max ₹1.5 Lakhs)
Medical insurance for self & parents
Self-occupied home loan interest (Max ₹2 Lakhs)
Tax-exempt HRA under Section 10(13A)
The New Tax Regime (Sec 115BAC) saves you ₹1,11,800 annually due to lower slab rates and the ₹75,000 standard deduction.
Regime Comparison Snapshot (2026-27)
Side-by-Side Slabs & Liability (2026-27)
How this is Calculated: Income Tax Calculation Basis (2026-27)
Mathematical Formula
Variable Definitions
Worked Example Walkthrough
Scenario: Salaried individual earning ₹12,75,000 gross salary.
Calculation: ₹12,75,000 gross - ₹75,000 std ded = ₹12,00,000 taxable income. Slabs tax = ₹60,000. Full 87A rebate = ₹60,000.
Result: New Tax Regime tax liability is exactly ₹0.
Assumptions & Methodology
- Resident individual under 60 years of age.
- Excludes surcharge unless taxable income exceeds ₹50 Lakhs.
About this Calculation Model
The Indian Income Tax calculator provides an exhaustive, side-by-side comparison between the New Tax Regime (Section 115BAC / Income-tax Act, 2025 default) and the Old Tax Regime for FY 2026-27 (AY 2027-28), FY 2025-26 (AY 2026-27), FY 2024-25, and FY 2023-24. It incorporates the ₹75,000 standard deduction for salaried individuals, Section 87A rebate up to ₹12,00,000 with marginal relief under Budget 2025, Chapter VI-A deductions (80C, 80D, 24b, HRA), and 4% Health & Education Cess.
How to Choose Your Calculator Inputs
1Gross Annual Salary
Your total annual salary before standard deductions, professional tax, or exemptions.
2Section 80C Deductions
Eligible investments in EPF, PPF, ELSS mutual funds, life insurance, and home loan principal (capped at ₹1,50,000 in Old Regime).
3Section 80D Health Insurance
Medical insurance premiums paid for self, spouse, children (up to ₹25,000) and parents (up to ₹50,000 for senior citizens).
4Home Loan Interest (Section 24b)
Interest paid on home loan for a self-occupied residential property, deductible up to ₹2,00,000 under Old Regime.
Interpreting Your Projections
The comparator highlights in green whichever regime yields lower aggregate tax payable. It details the exact annual savings and displays side-by-side slab-by-slab tax distributions, including rebate under Section 87A and 4% health & education cess.
Important Statutory & Practical Considerations
- Not Formal Tax Filing Advice: This calculator provides mathematical estimates based on statutory income tax slabs. Consult a Chartered Accountant (CA) or certified tax professional for complex multi-source returns.
- Surcharge & High-Net-Worth Caps: Surcharge rates apply for taxable income exceeding ₹50 Lakhs (10%, 15%, 25%, capped at 25% under New Regime vs 37% under Old Regime).
- Capital Gains Segregation: Special rate incomes such as equity capital gains (Section 111A STCG 20%, Section 112A LTCG 12.5%) are taxed separately and cannot be offset by standard deductions.
- Marginal Relief Rules: Marginal relief under Section 87A applies to salaried individuals whose taxable income marginally exceeds ₹7,00,000 under the New Regime.
Frequently Asked Questions
What is the standard deduction for salaried employees under New Regime in FY 2024-25 / 2025-26?
The Finance (No. 2) Act, 2024 increased the standard deduction for salaried individuals and pensioners under the New Tax Regime from ₹50,000 to ₹75,000. Under the Old Tax Regime, it remains ₹50,000.
Up to what salary is income tax zero under the New Tax Regime?
For salaried individuals earning up to ₹7,75,000, taxable income becomes ₹7,00,000 after the ₹75,000 standard deduction. Under Section 87A, 100% of the tax liability is rebated, resulting in zero net tax payable.
How do I know whether Old or New Regime is better for me?
If your total deductions (80C, 80D, HRA exemption, and Section 24b home loan interest) exceed approximately ₹3,75,000 to ₹4,25,000 (depending on salary tier), the Old Regime may save more money. Otherwise, the New Regime is generally superior.
Can I switch between Old and New Regime every financial year?
Salaried individuals with no business or professional income can freely switch between the Old and New Tax Regimes every year when filing their ITR under Section 139(1). Individuals with business income have restricted switching options.
Related Financial Calculators
SIP Calculator
Calculate wealth growth and maturity value of your monthly Systematic Investment Plan.
Lump Sum Calculator
Forecast the compounded future value of a one-time lump sum mutual fund investment.
Loan EMI Calculator
Calculate monthly home, car, or personal loan EMIs, interest payable, and payoff schedules.
Commercial Partnership & Editorial Independence Notice
Finminto is a free, privacy-first financial utility. To sustain server infrastructure and continuous tool development without charging subscriptions or erecting paywalls, we may include links to licensed financial platforms, AMFI-registered mutual fund distributors, or banking partners.
- Zero Algorithmic Bias: Calculations, schedules, and mathematical formulas are strictly deterministic and never adjusted to favor any commercial partner.
- Zero Data Sharing: Your calculation inputs (loan amount, salary, investments) execute locally in your browser and are never passed to commercial partners.
- Sponsored Disclosure: Any outbound commercial affiliate link carries mandatory
rel="sponsored nofollow"tags in compliance with ASCI and search engine standards.