Free Online Tool

Income Tax Calculator 2025-26

Calculate your income tax liability for FY 2025-26 under both new and old tax regimes. Includes surcharge, 4% health and education cess, and automatic comparison.

Tax Regime

Annual Salary (Rs)

Other Income (Rs)

80C Deductions (Rs)

80D Health Insurance (Rs)

HRA Exemption (Rs)

Other Deductions (Rs)

New Regime Slabs 2025-26

Income Range	Rate
Rs 0 - Rs 4,00,000	Nil
Rs 4,00,001 - Rs 8,00,000	5%
Rs 8,00,001 - Rs 12,00,000	10%
Rs 12,00,001 - Rs 16,00,000	15%
Rs 16,00,001 - Rs 20,00,000	20%
Rs 20,00,001 - Rs 24,00,000	25%
Above Rs 24,00,000	30%

What is the Income Tax Calculator for 2025-26?

The Income Tax Calculator for FY 2025-26 is a comprehensive financial tool that helps individual taxpayers in India estimate their income tax liability accurately. Whether you prefer the new tax regime with lower rates and fewer deductions or the old regime with higher rates but more exemptions, this calculator handles both. It automatically computes tax based on the latest income tax slabs announced in the Union Budget 2025, includes surcharge where applicable, applies the 4% health and education cess, and gives you a clear comparison so you can choose the regime that minimizes your tax outgo.

Tax calculation in India involves multiple steps: computing gross total income from all sources, subtracting allowable deductions, applying slab rates, adding surcharge for high incomes, and finally adding cess. One small mistake in any step can lead to incorrect tax estimation. This calculator eliminates all errors by handling every step programmatically based on the latest tax rules.

How to Use the Income Tax Calculator

Using this tax calculator takes less than a minute:

Select regime: Choose New, Old, or Compare Both to see which saves you more.
Enter annual salary: Include your basic pay, dearness allowance, HRA, special allowances, and bonuses.
Enter other income: Add interest from savings accounts and fixed deposits, rental income, capital gains, or any other income.
Enter deductions: For old regime, add Section 80C investments (max Rs 1.5 lakh), 80D health insurance premiums, HRA exemption, and other deductions.
Click Calculate Tax: The tool instantly shows your tax liability, surcharge, cess, and effective tax rate.

The comparison mode shows tax under both regimes side by side, helping you make an informed decision before filing your ITR.

New Tax Regime vs Old Tax Regime for 2025-26

The new tax regime introduced in Budget 2020 has been significantly revised for FY 2025-26. The basic exemption limit has been raised to Rs 4 lakh, and the tax rebate under Section 87A now covers income up to Rs 7 lakh, meaning zero tax liability for incomes up to Rs 7 lakh. The new regime has six slab brackets with rates from 5% to 30%, and the standard deduction of Rs 75,000 is available to salaried employees.

The old tax regime retains the traditional four-slab structure with higher exemption limits for deductions. It allows Section 80C deductions up to Rs 1.5 lakh, 80D for health insurance, HRA exemption, LTA, and various other deductions. The tax rebate under Section 87A provides zero tax liability for income up to Rs 5 lakh in the old regime. The choice between regimes depends entirely on your ability to claim deductions and exemptions.

Surcharge and Cess Calculation

Surcharge is an additional tax levied on taxpayers with higher incomes. For FY 2025-26, surcharge applies at 10% for income above Rs 50 lakh, 15% above Rs 1 crore, 25% above Rs 2 crore, and 37% above Rs 5 crore under the new regime. The old regime caps surcharge at 25% for income above Rs 5 crore. Marginal relief ensures that the additional tax due to surcharge does not exceed the amount by which income exceeds the threshold.

Health and Education Cess is uniformly applied at 4% of the total tax amount plus surcharge. It was introduced in 2018 to fund health and education infrastructure. Our calculator automatically applies the correct surcharge rate based on your income level and the 4% cess on the total tax.

Important Deductions Under Section 80C

Section 80C remains one of the most popular tax-saving provisions, allowing deductions up to Rs 1.5 lakh under the old regime. Eligible investments include Employee Provident Fund (EPF), Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS) with a 3-year lock-in, National Savings Certificate (NSC), 5-year tax-saving fixed deposits with banks, life insurance premium payments, tuition fees paid for children's education, principal repayment of home loan, and Sukanya Samriddhi Yojana.

Additional deductions under Section 80CCC (pension funds) and 80CCD(1B) (National Pension System) provide extra tax-saving opportunities. Section 80CCD(1B) allows an additional deduction of up to Rs 50,000 for NPS contributions over and above the Rs 1.5 lakh 80C limit, making it an attractive option for retirement planning with tax benefits.

Frequently Asked Questions

How to calculate income tax for 2025-26?

To calculate income tax for FY 2025-26, first determine your total annual income including salary, business income, capital gains, and other sources. Subtract applicable deductions under sections 80C (up to Rs 1.5 lakh), 80D (health insurance), 80E (education loan), etc. Apply the applicable tax slab rates for your chosen regime. Add surcharge if income exceeds Rs 50 lakh. Add 4% health and education cess on the total tax amount. Our calculator does all this automatically.

What are the income tax slabs for 2025-26 under new regime?

The new tax regime slabs for FY 2025-26 are: Rs 0-4 lakh (nil), Rs 4-8 lakh (5%), Rs 8-12 lakh (10%), Rs 12-16 lakh (15%), Rs 16-20 lakh (20%), Rs 20-24 lakh (25%), and above Rs 24 lakh (30%). The tax rebate under Section 87A allows zero tax liability for income up to Rs 7 lakh. For salaried individuals, standard deduction of Rs 75,000 is available.

What are the income tax slabs for 2025-26 under old regime?

The old tax regime slabs for FY 2025-26 are: Rs 0-2.5 lakh (nil), Rs 2.5-5 lakh (5%), Rs 5-10 lakh (20%), and above Rs 10 lakh (30%). The old regime allows various deductions and exemptions including 80C (Rs 1.5 lakh), 80D, HRA exemption, LTA, standard deduction of Rs 75,000, and more. The tax rebate under Section 87A applies for income up to Rs 5 lakh.

Which tax regime is better for 2025-26?

The choice between new and old tax regimes depends on your deductions and exemptions. The new regime offers lower tax rates but eliminates most deductions. The old regime has higher rates but allows 80C, 80D, HRA, LTA, and other deductions. Generally, if you claim deductions exceeding Rs 3-4 lakh annually, the old regime may be beneficial. For those with minimal deductions or salaried employees without HRA, the new regime often results in lower tax. Use our comparison feature to evaluate both.

What is surcharge on income tax for 2025-26?

Surcharge is an additional tax levied on high-income individuals for FY 2025-26. The rates are: 10% if income exceeds Rs 50 lakh, 15% if income exceeds Rs 1 crore, 25% if income exceeds Rs 2 crore, and 37% if income exceeds Rs 5 crore (new regime) or 25% (old regime above Rs 5 crore). Surcharge is calculated on the basic tax amount before cess. The marginal relief provision ensures that the additional tax due to surcharge does not exceed the income above the threshold.

What is health and education cess?

Health and Education Cess is levied at 4% of the total tax amount including surcharge for FY 2025-26. It was introduced to fund health and education initiatives. The cess applies uniformly to all taxpayers regardless of income level. It is calculated as: Cess = (Basic Tax + Surcharge) × 4%. For example, if your tax is Rs 50,000 with no surcharge, the cess is Rs 2,000, making the total tax payable Rs 52,000.

How to claim HRA exemption in income tax?

HRA (House Rent Allowance) exemption is calculated as the minimum of three amounts: (1) Actual HRA received from employer, (2) Rent paid minus 10% of basic salary, (3) 50% of basic salary for metro cities (Delhi, Mumbai, Chennai, Kolkata) or 40% for non-metro cities. For FY 2025-26, HRA exemption is only available under the old tax regime. The new regime does not allow HRA exemption as it has lower tax rates instead.

What deductions are available under Section 80C?

Section 80C allows deductions up to Rs 1.5 lakh for FY 2025-26 under the old regime. Eligible investments include: Employee Provident Fund (EPF), Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS), National Savings Certificate (NSC), 5-year fixed deposits, life insurance premiums, tuition fees for children, principal repayment of home loan, and Sukanya Samriddhi Yojana. Section 80C is not available in the new tax regime.

What is the standard deduction for salaried employees in 2025-26?

The standard deduction for salaried employees and pensioners is Rs 75,000 for FY 2025-26. This deduction is available in both the old and new tax regimes. It is a flat deduction from gross salary income and does not require any investment or documentation. The standard deduction was increased from Rs 50,000 to Rs 75,000 in the Union Budget 2025.

How to calculate tax on salary above Rs 50 lakh?

For income above Rs 50 lakh, additional surcharge applies. For example, if your taxable income is Rs 60 lakh: calculate tax as per applicable slabs (say Rs 12,00,000), apply 10% surcharge on tax amount (Rs 1,20,000), add 4% cess on (Rs 12,00,000 + Rs 1,20,000) = Rs 52,800. Total tax = Rs 12,00,000 + Rs 1,20,000 + Rs 52,800 = Rs 13,72,800. Our calculator handles surcharge and cess automatically.

Can I switch between old and new tax regimes?

Salaried individuals can switch between old and new tax regimes each financial year, provided they do not have business income. For FY 2025-26, you can choose whichever regime gives lower tax liability. Once you file your return under a regime, you can switch the next year. Business taxpayers who opt for the new regime can switch only once in their lifetime, so they must choose carefully.

What is the difference between gross total income and taxable income?

Gross Total Income (GTI) is your total income from all sources including salary, house property, capital gains, business/profession, and other sources before any deductions. Taxable income is GTI minus allowable deductions under Sections 80C to 80U. For FY 2025-26, deductions can include 80C (Rs 1.5 lakh), 80D, 80E, 80G (donations), and others under the old regime. Tax is calculated on taxable income, not GTI.

How much tax do I pay if my income is Rs 10 lakh?

Under the new regime for FY 2025-26, on income of Rs 10 lakh after standard deduction: first Rs 4 lakh nil, next Rs 4 lakh at 5% (Rs 20,000), next Rs 2 lakh at 10% (Rs 20,000). Total tax = Rs 40,000. Under the old regime: first Rs 2.5 lakh nil, next Rs 2.5 lakh at 5% (Rs 12,500), next Rs 5 lakh at 20% (Rs 1,00,000). Total tax = Rs 1,12,500. Add 4% cess to both. The calculator gives exact comparison.