Income Tax Calculator

Two regimes, one choice

Individuals in India can choose between the new tax regime (the default) and the old regime. The new regime has more slabs with lower rates, a higher standard deduction for salaried people, and a large rebate that makes income up to a threshold effectively tax-free, but it removes most deductions and exemptions. The old regime keeps deductions like 80C, 80D, HRA and home loan interest, with higher rates.

How the calculation works

1. Taxable income = income − standard deduction (for salaried and pensioners) − deductions allowed in that regime.
2. Slab tax is calculated progressively, each rate applying only to income within its slab.
3. Rebate: if taxable income is within the rebate limit, tax is reduced up to the maximum rebate. In the new regime, marginal relief ensures that earning slightly above the limit doesn’t cost more in tax than the extra income.
4. Surcharge applies at higher incomes (above ₹50 lakh), with marginal relief at each threshold.
5. Health and education cess of 4% is added on tax plus surcharge.

Slabs used

Slabs, rebate limits, standard deduction and surcharge rates are stored in our admin panel and shown for the financial year noted below the result. For example, under the new regime introduced in Budget 2025, income up to ₹12 lakh has no tax after the rebate, and a salaried person with the ₹75,000 standard deduction pays no tax on a salary up to ₹12.75 lakh. Budgets can change these numbers, so check the year shown.

Old-regime deductions at a glance

• 80C up to ₹1.5 lakh: EPF, PPF, ELSS, life insurance, tuition fees, home loan principal.
• 80D: health insurance premiums for self, family and parents.
• HRA exemption: calculate yours with the HRA calculator.
• Section 24(b): up to ₹2 lakh home loan interest on a self-occupied house.

Important

This calculator covers regular income. Capital gains, business income, special-rate income and agricultural income have separate rules. For take-home pay, see the in-hand salary calculator. Verify with the Income Tax Department’s official calculator or a tax adviser before filing.