Income Tax Calculator (India)
The income tax calculator estimates how much income tax you owe in India under either the new or old regime, applying standard deduction, the 87A rebate and 4% health and education cess — a ₹15,00,000 new-regime income comes to about ₹97,500, while ₹12,00,000 is fully rebated to zero.
verified_userReviewed by the Calculopedia editorial teamLast updated 2026-08-14
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quizExample
How this calculator works, with real numbers (no JavaScript needed):
Inputs
- Annual income
- 1200000
- Tax regime
- new
- Deductions (80C, 80D, etc.)
- 150000
Results
- Taxable income
- ₹11,25,000
- Income tax
- ₹0
- Health & education cess (4%)
- ₹0
- Total tax payable
- ₹0
- Effective tax rate
- 0%
functionsThe formula
India's income tax applies progressive slabs — different portions of your income are taxed at different rates. How much you owe depends on which regime you choose, and you can pick whichever gives you lower tax. Income tax has a long history here — India was one of the first countries to adopt a formal income tax, introduced in 1860 — but the modern system has two parallel tracks that make the calculation genuinely two-sided.
The new regime (default since FY 2023-24)
No exemptions needed — lower rates, a flat ₹75,000 standard deduction, and income up to ₹12,00,000 is tax-free thanks to the 87A rebate:
| Slab | Rate |
|---|---|
| 0 – ₹4,00,000 | 0% |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
The old regime
You can claim deductions — Section 80C (up to ₹1.5 lakh), 80D (health insurance), HRA, home-loan interest and more. Rates: 0% up to ₹2.5 lakh, 5% up to ₹5 lakh, 20% up to ₹10 lakh, 30% above. The 87A rebate makes income up to ₹5,00,000 tax-free.
How the calculator computes tax
- Deduct the standard deduction (₹75,000 new / ₹50,000 old) and any 80C/80D-style deductions (old regime) to get taxable income.
- Apply the slabs — tax each portion at its rate.
- Apply the 87A rebate: if taxable income is at or below the rebate limit (₹12 lakh new / ₹5 lakh old), tax becomes ₹0.
- Add 4% health and education cess.
Worked example
Income of ₹12,00,000, new regime:
- Taxable = 12,00,000 − 75,000 = ₹11,25,000
- Slab tax = 0 + 5% × 4,00,000 + 10% × 3,25,000 = ₹52,500
- Rebate 87A applies (income ≤ ₹12 lakh) → tax = ₹0
Income of ₹15,00,000, new regime:
- Taxable = ₹14,25,000
- Slab tax = 0 + 5% × 4,00,000 + 10% × 4,00,000 + 15% × 2,25,000 = ₹93,750
- Cess 4% = ₹3,750 → total ≈ ₹97,500
Notice how the second example jumps from zero tax to nearly a lakh — a single ₹3 lakh of income crossing the rebate boundary costs more than the marginal 15% slab rate would suggest. For incomes just above a limit, real-world filings may also attract marginal relief, which caps the tax so the extra income is not completely swallowed; this calculator applies the standard slab computation for clarity.
Which regime actually wins?
Run your own numbers both ways, but the rule of thumb is:
| Your situation | Likely winner |
|---|---|
| Few or no deductions (standard 80C, no HRA claim) | New regime |
| Max 80C + 80D + HRA + home-loan interest | Old regime |
| Salary income only, mid-range | Usually new |
The gap is often a modest lakh or two of salary difference away from flipping, so the calculator is genuinely worth running twice — before you file, your employer's form asks you to choose a regime, and the choice locks for the tax year.
Effective vs marginal rate
The slab tables quote marginal rates (the rate on the top rupee). What most people actually pay is far lower: on a ₹15,00,000 income, the ₹97,500 total is an effective rate of just 6.5%, because the first ₹4 lakh is tax-free and each slab only taxes its own slice. When someone says "30% tax bracket", they usually mean the top slice — rarely what their whole income pays.
The slabs and rebate shown here are the latest available (FY 2025-26). Budget announcements can change them — this page is updated when they do.
helpFrequently asked questions
question_markWhich tax regime is better: new or old?
The old regime wins if you claim many deductions (80C, 80D, HRA, home-loan interest). The new regime wins if you have few deductions. Use this calculator for both to compare — and keep the lower one.
question_markWhat are the income tax slabs for FY 2025-26?
Under the new regime: 0% up to ₹4 lakh, 5% to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh, 20% to ₹20 lakh, 25% to ₹24 lakh and 30% above. Income up to ₹12 lakh is tax-free via the 87A rebate.
question_markWhat is the 87A rebate?
Section 87A lets you reduce your tax to zero if your taxable income is within the rebate limit — ₹12 lakh in the new regime and ₹5 lakh in the old regime.
question_markDoes the calculator include cess?
Yes. A 4% health and education cess is added to the income tax in the total shown. The calculator also shows it as a separate line.