Income Tax Calculator India: New Regime vs Old (FY 2025-26)
Compare old vs new tax regime instantly. Enter your annual salary and other income to estimate tax for FY 2025-26 (AY 2026-27), including standard deduction, Section 87A rebate and 4% cess.
About Income Tax Calculator (Old vs New Regime)
This calculator helps you compare Income Tax Calculator India – new regime vs old for FY 2025-26. New regime is the default option and offers simpler compliance with fewer deductions, while old regime can be beneficial if you claim higher deductions (80C/80D/HRA etc.).
Income Tax Slab Comparison (FY 2025-26)
New regime slabs are revised for FY 2025-26. Old regime slabs remain classic (2.5L/5L/10L), with higher basic exemption for senior and super senior citizens (resident).
| Income Bracket | New Regime Rate (FY 2025-26) | Old Regime Rate |
|---|---|---|
| Up to ₹2.5L | — | Nil |
| Up to ₹4L | Nil | — |
| ₹2.5L – ₹5L | — | 5% |
| ₹5L – ₹10L | — | 20% |
| Above ₹10L | — | 30% |
| ₹4L – ₹8L | 5% | — |
| ₹8L – ₹12L | 10% | — |
| ₹12L – ₹16L | 15% | — |
| ₹16L – ₹20L | 20% | — |
| ₹20L – ₹24L | 25% | — |
| Above ₹24L | 30% | — |
Example: Tax on ₹15 Lakh Salary (New Regime)
Example below assumes salary income only and applies ₹75,000 standard deduction (FY 2025-26):
₹15,00,000 Salary – New Regime (FY 2025-26)
- Gross Salary₹15,00,000
- Less: Standard Deduction– ₹75,000
- Net Taxable Income₹14,25,000
- ₹0 – ₹4L (Nil)₹0
- ₹4L – ₹8L (5% on ₹4L)₹20,000
- ₹8L – ₹12L (10% on ₹4L)₹40,000
- ₹12L – ₹14.25L (15% on ₹2.25L)₹33,750
- Total Tax (Before Cess)₹93,750
- Add: Cess (4%)₹3,750
- Final Tax Payable₹97,500
How to calculate taxable income in india
Before you can determine your final tax liability, you need to understand how to calculate taxable income in india. Your gross income includes your basic salary, HRA, special allowances, and other sources like savings interest or rental income.
- Step 1: Sum up your Gross Salary and Other Incomes.
- Step 2: Subtract the Standard Deduction (₹75,000 for New Regime, ₹50,000 for Old Regime).
- Step 3: If using the Old Regime, subtract eligible deductions like Section 80C (up to ₹1.5 Lakh), 80D (Health Insurance), and Home Loan Interest.
- Step 4: The final figure is your Net Taxable Income, on which the income tax slabs are applied.
Let’s break down the process step-by-step using the new tax regime.
Example: ₹12,00,000 Salary – New Regime
- Gross Salary₹12,00,000
- Less: Standard Deduction– ₹75,000
- Net Taxable Income₹11,25,000
- 0 – 4L (0%)₹0
- 4L – 8L (5% on 4L)₹20,000
- 8L – 11.25L (10% on 3.25L)₹32,500
- Total Tax (Before Cess)₹52,500
- Add Cess (4%)+ ₹2,100
- Final Tax Payable₹54,600
How to calculate income tax on salary with example
Many taxpayers search for a practical guide on How to calculate income tax on salary with example to cross-verify their HR payroll sheets. Let’s assume you have a gross salary of ₹9,00,000 and choose the Old Tax Regime with ₹1,50,000 invested in 80C.
First, apply the standard deduction of ₹50,000. Your income becomes ₹8,50,000. Now, subtract the ₹1,50,000 (80C deduction). Your Net Taxable Income is strictly ₹7,00,000. According to the Old Regime slabs:
– ₹0 to ₹2.5 Lakh = Nil
– ₹2.5 Lakh to ₹5 Lakh (5%) = ₹12,500
– ₹5 Lakh to ₹7 Lakh (20%) = ₹40,000
Total Tax becomes ₹52,500. Add 4% Health & Education Cess (₹2,100), and your Final Tax is ₹54,600. Using our tool above skips this manual math completely!
Income tax calculator new regime with marginal relief
One of the biggest pain points for taxpayers earning slightly above the rebate limit is the sudden tax spike. This is why using an income tax calculator new regime with marginal relief is crucial.
For instance, in the FY 2025-26 New Regime, income up to ₹12 Lakhs is completely tax-free due to the Section 87A rebate. But what if you earn ₹12,10,000? Without marginal relief, you would suddenly owe around ₹60,000+ in taxes just for earning ₹10,000 extra! Our calculator automatically applies the Marginal Relief formula, ensuring that your tax payable never exceeds the extra income earned above the ₹12 Lakh threshold.
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