Income Tax Calculator
Compare the old and new tax regimes side by side and estimate your income tax for FY 2025-26 (AY 2026-27).
Financial Year: FY 2025-26 (AY 2026-27)| Metric | New Regime | Old Regime |
|---|---|---|
| Taxable Income | ₹11,25,000 | ₹10,00,000 |
| Tax Before Rebate | ₹52,500 | ₹1,12,500 |
| Section 87A Rebate | ₹52,500 | ₹0 |
| Health & Education Cess | ₹0 | ₹4,500 |
| Effective Tax Rate | 0.00% | 9.75% |
Old vs New Tax Regime — What's the Difference?
The new tax regime offers lower slab rates and a simpler structure but removes most exemptions and deductions (such as 80C, 80D and HRA). The old regime retains higher slab rates but allows those deductions to reduce your taxable income. Which one is cheaper depends entirely on how much you can legitimately claim in deductions under the old regime.
How Tax Is Calculated
Tax is calculated using a slab-based marginal system — each portion of your taxable income is taxed at the rate for that slab, not your entire income at the highest applicable rate. A Section 87A rebate can reduce your final tax to zero if your taxable income falls below the regime's rebate threshold, and a 4% health and education cess is added on top of the tax after rebate.
Important Notes
- Tax slabs shown are for FY 2025-26 (AY 2026-27) and may change in future budgets — always verify current rules.
- This calculator excludes surcharge, which applies to very high incomes (typically above ₹50 lakh).
- Senior citizen exemption limits and other special cases are not modeled — consult a tax advisor for personalized guidance.
Frequently Asked Questions
Which tax regime should I choose — old or new?
The new regime offers lower slab rates but removes most deductions and exemptions. The old regime has higher rates but allows deductions like 80C, 80D and HRA. If your eligible deductions are substantial, the old regime may work out cheaper — compare both using this calculator.
What financial year do these tax slabs apply to?
This calculator uses income tax slabs for FY 2025-26 (AY 2026-27) as per the Union Budget 2025. Tax rules change periodically — always verify current rules with the Income Tax Department or a tax professional before filing.
What is the Section 87A rebate?
Section 87A provides a rebate that can reduce your tax liability to zero if your taxable income is below a specified threshold — ₹12,00,000 under the new regime and ₹5,00,000 under the old regime for FY 2025-26, subject to the rebate cap.
Does this calculator include surcharge for high incomes?
No — this calculator computes slab-based tax plus health and education cess only. Surcharge, which applies to very high incomes (typically above ₹50 lakh), is not included in this estimate.
What deductions can I claim under the old regime?
Common deductions include Section 80C (up to ₹1.5 lakh for PPF, ELSS, life insurance, etc.), Section 80D (health insurance premiums), and home loan interest under Section 24(b). Enter your total eligible deductions in the "Other Deductions" field.