Income Tax Calculator India (FY 2025-26 & 2026-27)

Why Two Regimes Exist in the First Place

India runs a dual income-tax system. The New Regime offers wider, lower slabs but strips away almost every deduction. The Old Regime keeps higher rates but lets you shrink your taxable income with investments and allowances. For FY 2025-26 (AY 2026-27), the New Regime is the default — and after the latest slab revisions, it has become hard to beat for most salaried taxpayers. This calculator runs both side by side so you never have to guess.

The FY 2025-26 New-Regime Slabs

The New Regime now uses these labelled slabs: nil up to Rs 4 lakh, 5% from Rs 4-8 lakh, 10% from Rs 8-12 lakh, 15% from Rs 12-16 lakh, 20% from Rs 16-20 lakh, 25% from Rs 20-24 lakh, and 30% above Rs 24 lakh. Layered on top is a powerful Section 87A rebate that wipes out tax entirely when taxable income stays within Rs 12 lakh. Add the Rs 75,000 standard deduction and a salaried earner can take home around Rs 12.75 lakh gross completely tax-free.

The Old-Regime Slabs

The Old Regime keeps the familiar structure: nil up to Rs 2.5 lakh, 5% from Rs 2.5-5 lakh, 20% from Rs 5-10 lakh, and 30% above Rs 10 lakh. Its 87A rebate only reaches taxable income of Rs 5 lakh, and the standard deduction is Rs 50,000. Its appeal lives entirely in deductions — without them, it almost always loses.

A Worked Example in INR

Take Priya, a salaried professional with a gross income of Rs 14,00,000, who invests Rs 1.5 lakh in PPF (80C), pays Rs 25,000 in health premiums (80D) and claims Rs 1,75,000 of HRA — total deductions of Rs 3,50,000.

New Regime: Taxable income = 14,00,000 − 75,000 = Rs 13,25,000. Slab tax = 0 (first 4L) + 20,000 (5% of 4L) + 40,000 (10% of 4L) + 18,750 (15% of 1.25L) = Rs 78,750. Income exceeds Rs 12 lakh, so no rebate. Add 4% cess (Rs 3,150) → Rs 81,900.

Old Regime: Taxable income = 14,00,000 − 50,000 − 3,50,000 = Rs 10,00,000. Slab tax = 0 + 12,500 (5% of 2.5L) + 1,00,000 (20% of 5L) = Rs 1,12,500. Add 4% cess (Rs 4,500) → Rs 1,17,000.

Here the New Regime wins by Rs 35,100, even though Priya has hefty deductions — a result that surprises many taxpayers and shows why running the numbers beats following old habits.

When the Old Regime Still Wins

Flip the example: if Priya could honestly claim Rs 5 lakh+ in deductions (large home-loan interest plus full 80C, 80D, NPS and HRA), her Old-Regime taxable income would drop enough to overtake the New Regime. The break-even point rises with income, so high earners with genuine home loans and rent often still prefer the Old Regime. The only way to know is to model your own figures.

How to Build Your Deduction Stack

Most Old-Regime savings come from disciplined, year-round investing rather than a March scramble. Anchoring your 80C limit with a safe, tax-free instrument is a classic move — model it with our PPF calculator to see the maturity value, or use the SIP calculator to project an ELSS mutual-fund plan that also qualifies under 80C.

Read the Result, Then Verify

This tool gives an indicative estimate for FY 2025-26. It does not model surcharge on incomes above Rs 50 lakh, marginal relief, or special-rate capital gains. Treat it as a planning aid: use it to choose a regime, size your deductions and forecast take-home pay — then confirm the final figure with a chartered accountant or the official Income Tax Department portal before you file.