Income Tax Calculator - Calculate Tax for FY 2025-26

Calculate your income tax under new and old regime for FY 2025-26 (AY 2026-27). Get instant tax liability with slab-wise breakdown, rebate u/s 87A, and cess computation based on latest Budget 2025 slabs.

Last updated: June 2026 for FY 2025-26Formula verified against RBI / government guidelinesReviewed by Ranveer Patel, Finance Professional
100% private: All calculations run in your browser. Your numbers never leave your device — no server, no storage, no account required.

How to Use This Income Tax Calculator

Using our Income Tax Calculator is simple and takes just a few seconds. Enter your values using the sliders or input fields above, and the results will update instantly — no need to click a calculate button.

All calculations are performed in your browser using standard financial formulas. Your data is never stored or transmitted to any server, ensuring complete privacy.

The results shown are estimates based on the inputs you provide. For precise figures, consult with your bank or financial advisor. Use this tool for quick comparisons, planning, and understanding how different variables affect your financial outcomes.

Advertisement

Formula & Explanation

Tax = Sum of (Income in each slab × Slab rate) + 4% Cess

Income tax is calculated by applying progressive slab rates to different portions of your taxable income. For FY 2025-26 new regime: 0-4L (Nil), 4-8L (5%), 8-12L (10%), 12-16L (15%), 16-20L (20%), 20-24L (25%), above 24L (30%). Health & Education Cess of 4% is added to the total tax amount. Rebate u/s 87A makes income up to ₹12 lakh tax-free under new regime.

Calculation Examples

₹12 Lakh Income (New Regime)

Annual income of ₹12 lakhs under new regime FY 2025-26

Tax: ₹0 (Rebate u/s 87A applies)

₹16 Lakh Income (New Regime)

Annual income of ₹16 lakhs under new regime FY 2025-26

Tax: ₹62,400 | Effective Rate: 3.9%

₹25 Lakh Income (New Regime)

Annual income of ₹25 lakhs under new regime FY 2025-26

Tax: ₹3,43,200 | Effective Rate: 13.73%

Benefits

  • Updated for FY 2025-26 Budget 2025 slabs
  • Compare old vs new regime instantly
  • Slab-wise tax breakdown
  • Includes rebate u/s 87A calculation
  • Quick effective tax rate estimation

Use Cases

  • Annual tax planning for FY 2025-26
  • Salary negotiation
  • Investment declaration planning
  • Old vs new regime comparison
  • Advance tax calculation

About Income Tax Calculator

Our Income Tax Calculator helps you estimate your tax liability for FY 2025-26 (Assessment Year 2026-27) based on the latest tax slabs announced in Union Budget 2025. Compare tax under both old and new tax regimes, understand slab-wise breakdowns, and plan your tax-saving investments effectively. The new regime now offers zero tax up to ₹12 lakh income with revised slabs.

New Tax Regime vs. Old Tax Regime

Choosing the right tax regime is the most crucial financial decision for salaried employees in India. The Old Tax Regime allows you to claim around 70 deductions and exemptions, including HRA, LTA, and Section 80C (up to ₹1.5 lakh). The New Tax Regime offers lower, more attractive tax slab rates and a higher basic exemption limit, but it forces you to forego almost all major deductions.

When to Choose the Old Regime?

If you are paying significant house rent (HRA), have an ongoing home loan (Section 24b), and max out your Section 80C (EPF, ELSS, PPF) and 80D (Health Insurance) investments, the Old Regime might still save you more money in taxes.

When to Choose the New Regime?

The New Tax Regime is now the default tax system in India. It is highly beneficial for individuals earning up to ₹7-7.5 lakhs, as their tax liability becomes effectively zero. It is also ideal for those who prefer higher monthly take-home pay and do not want to lock their money into rigid tax-saving instruments.

How to Use This Income Tax Calculator

Simply enter your Gross Salary, HRA exemptions, and expected deductions (like 80C). Our calculator instantly runs the math for both regimes side-by-side, explicitly telling you which regime is better for your specific income profile for FY 2025-26.

Frequently Asked Questions

The old tax regime allows deductions like 80C (₹1.5 lakh), HRA, standard deduction, and home loan interest that reduce taxable income. The new regime offers lower slab rates but disallows most deductions. For FY 2025-26, income up to ₹12 lakh is effectively tax-free under the new regime due to rebate u/s 87A — making it better for those with limited deductions. Use the free Income Tax Calculator on AbacusHand to calculate your exact result instantly.

Under the new regime for FY 2025-26, ₹10 lakh gross salary minus ₹75,000 standard deduction = ₹9.25 lakh taxable income. Tax works out to approximately ₹42,500 + 4% cess = ₹44,200. Under the old regime, with 80C (₹1.5L) + standard deduction (₹50K), taxable income = ₹8 lakh, tax approximately ₹75,400. New regime saves around ₹31,200 here. Use the free Income Tax Calculator on AbacusHand to calculate your exact result instantly.

The standard deduction for salaried employees is ₹75,000 under the new tax regime for FY 2025-26 — increased from ₹50,000 in the previous year. This automatically reduces taxable income by ₹75,000 with no proof required. Under the old tax regime, standard deduction remains ₹50,000. Pensioners receive ₹25,000 standard deduction under the new regime. Use the free Income Tax Calculator on AbacusHand to calculate your exact result instantly.

HRA exemption under the old regime is the lowest of: (1) actual HRA received; (2) 50% of basic salary for metro cities (40% non-metro); (3) actual rent paid minus 10% of basic salary. If basic is ₹6 lakh/year, HRA received ₹3 lakh, rent paid ₹2.4 lakh: exemption = ₹2.4L − ₹60K = ₹1.8 lakh. HRA exemption is not available under the new regime. Use the free Income Tax Calculator on AbacusHand to calculate your exact result instantly.

The new regime is better if your total deductions (80C + HRA + home loan interest + NPS) are less than approximately ₹3.75 lakh. The old regime benefits those claiming: ₹1.5L under 80C, ₹2L home loan interest, HRA, and NPS contributions. As a rule: if your combined deductions on ₹12–15 lakh income exceed ₹4 lakh, stick to the old regime; otherwise the new regime saves more tax. Use the free Income Tax Calculator on AbacusHand to calculate your exact result instantly.

Related Calculators

GST Calculator

Calculate GST with CGST/SGST breakdown

Profit Margin Calculator

Calculate profit margin and markup

Salary Calculator

Calculate salary breakdown from CTC

Salary Hike Calculator

Calculate salary after appraisal hike

New vs Old Tax Regime Calculator

Compare old and new income tax regimes

TDS Calculator

Calculate monthly TDS deducted from salary

Advance Tax Calculator

estimate advance tax instalments and remaining income tax payable for India.

ITR Refund Calculator

estimate income tax refund or extra tax payable while filing ITR.

Related Articles

tax - 9 min read

HRA Calculation: How to Claim House Rent Allowance

Learn the exact HRA calculation formula with examples. Understand how to claim maximum House Rent Allowance exemption and save tax under the old regime.

tax - 12 min read

New vs Old Tax Regime: Complete Comparison 2025-26

Detailed comparison of new and old income tax regimes for FY 2025-26. Find out which regime saves you more tax based on your salary and deductions.

tax - 10 min read

Section 80C Deductions: Complete List of Tax-Saving Options

Complete guide to all Section 80C deductions for FY 2025-26. Explore PPF, ELSS, NPS, LIC, EPF & more to save up to ₹46,800 in taxes every year.