Income Tax Calculator India (FY 2025-26)
About Income Tax Calculator India
This free Income Tax Calculator India helps individuals calculate their income tax liability for FY 2025-26 under both the Old Tax Regime and New Tax Regime. The calculator follows the latest slab rates announced by the Government of India and includes standard deduction, rebate under Section 87A, senior citizen benefits, and 4% health & education cess.
Whether you are a salaried employee, freelancer, business owner, or pensioner, this tool allows you to instantly compare which tax regime is more beneficial based on your income and deductions.
How Income Tax is Calculated in India
Income tax in India is calculated on a slab basis. Different portions of income are taxed at different rates. The final tax payable is computed after applying deductions, rebates, and cess.
New Tax Regime Formula
Tax Payable = Slab-wise Tax on (Total Income – ₹75,000 Standard Deduction) + 4% Cess
Under the new regime, rebate under Section 87A is available for income up to ₹7,00,000.
Old Tax Regime Formula
Tax Payable = Slab-wise Tax on (Total Income – Eligible Deductions) + 4% Cess
Under the old regime, individuals can claim deductions under sections like 80C, 80D, HRA, home loan interest, etc. Rebate under Section 87A is available for income up to ₹5,00,000.
How to Use This Calculator
- Enter your total annual income before tax.
- Select your correct age category.
- Enter total deductions (only if calculating under Old Regime).
- Select your preferred regime or choose Compare Both.
- Click “Calculate Tax” to view instant results.
Why Compare Old vs New Tax Regime?
Choosing the right tax regime can save thousands of rupees every year. The new regime offers lower tax rates but fewer deductions, while the old regime provides multiple deduction benefits but higher slab rates. Comparing both helps you legally minimize tax liability.
Use this updated and accurate tax calculator to make informed financial decisions and plan your investments effectively.
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