Calculate & Compare tax liability under New Tax Regime vs Old Tax Regime for AY 2026-27.
The India Income Tax Calculator for FY 2025-26 (AY 2026-27) helps individuals, salaried employees, and freelancers quickly estimate their tax liability under both the New Tax Regime and the Old Tax Regime. All calculations happen in real time directly in your browser — no data is uploaded, no account is required.
The Union Budget 2025-26 introduced significant changes to India's income tax structure. The New Tax Regime now features updated slab rates with a higher rebate limit of ₹12 lakh under Section 87A, making it more attractive for a wide range of taxpayers. This calculator incorporates the latest slabs announced in the February 2025 Budget so you can make an informed tax planning decision.
Whether you are deciding which tax regime to choose, planning investments under Section 80C, or simply wanting to know how much TDS should be deducted from your salary — this tool gives you an instant, accurate estimate.
| Income Slab | New Regime Rate | Old Regime Rate |
|---|---|---|
| Up to ₹3,00,000 | Nil | Nil |
| ₹3,00,001 – ₹7,00,000 | 5% | 5% (up to 5L) |
| ₹7,00,001 – ₹10,00,000 | 10% | 20% |
| ₹10,00,001 – ₹12,00,000 | 15% | 30% |
| ₹12,00,001 – ₹15,00,000 | 20% | 30% |
| Above ₹15,00,000 | 30% | 30% |
Note: New Regime offers full rebate (zero tax) up to ₹12,00,000 income under Section 87A. Old Regime offers full rebate up to ₹5,00,000.
It depends on your deductions. If you have significant investments under 80C (₹1.5L), HRA exemptions, home loan interest under 24(b), or other exemptions totalling more than ₹3-4 lakh, the Old Regime may be better. If your total deductions are under ₹2.5 lakh, the New Regime typically results in lower taxes. Use the comparison feature to find out which works for you.
Yes. Budget 2025-26 enhanced the Section 87A rebate for the New Tax Regime. Individuals with taxable income up to ₹12,00,000 will receive a full rebate, effectively making their tax liability zero. For salaried employees, the ₹75,000 standard deduction means zero tax up to ₹12,75,000 CTC.
The Old Regime allows: Standard Deduction (₹50,000 for salaried), Section 80C (up to ₹1.5L — PPF, ELSS, LIC, EPF, etc.), Section 80D (health insurance premiums), HRA exemption, LTA, Section 24(b) home loan interest (up to ₹2L), Section 80CCD(1B) NPS (additional ₹50,000), and many more. These can significantly reduce your taxable income.
Health and Education Cess is charged at 4% on your total income tax (including surcharge). It is mandatory and applicable to all taxpayers regardless of income. This calculator automatically adds the 4% cess to your total tax liability.
Yes. This calculator uses the latest tax slabs, rebates, and cess rates as announced in Union Budget 2025-26 for FY 2025-26 / AY 2026-27. It is updated to reflect the enhanced Section 87A rebate of ₹60,000 (effective zero tax up to ₹12L) under the New Regime. However, for complex tax situations involving surcharge, AMT, or special income, please consult a Chartered Accountant.