How income tax is calculated in India (FY 2025-26)

Your income tax is calculated by applying slab rates to your taxable income — that is, your gross income minus the standard deduction and, under the old regime, eligible deductions such as 80C, 80D and HRA. A Section 87A rebate, surcharge (for high incomes) and a 4% health and education cess are then applied.

This income tax calculator computes your tax under both the new and old regimes for FY 2025-26 (AY 2026-27) and tells you which one results in lower tax, so you can plan ahead before filing your ITR.

New tax regime vs old tax regime

The new regime (the default) has lower slab rates and a higher rebate but removes most exemptions and deductions. The old regime keeps higher rates but lets you claim HRA, LTA, 80C investments, 80D medical insurance, home loan interest and more. Taxpayers with significant deductions often save more under the old regime; those with few deductions usually benefit from the new regime.

Under the new regime for FY 2025-26, income up to ₹12,00,000 is effectively tax-free thanks to the enhanced Section 87A rebate (₹12,75,000 for salaried individuals after the ₹75,000 standard deduction).

For CA firms and tax consultants

Chartered Accountants can use this calculator for quick regime comparison during client advisory and tax planning. Hidesc helps CA firms manage ITR filing workflows, deadlines and client documents across the whole practice.

New regime income tax slabs (FY 2025-26)