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.
Calculate Income Tax
Your total annual taxable income for FY 2025-26
New regime is default from FY 2023-24 onwards
Total Tax Payable
₹0
Income Tax
₹0
Health & Education Cess (4%)
₹0
Effective Tax Rate
0.00%
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.
Formula & Explanation
Tax = Sum of (Income in each slab × Slab rate) + 4% CessIncome 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.
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.
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