India Income Tax Calculator FY 2026-27 — Old vs New Regime — Free
Calculate your income tax for FY 2025-26 (AY 2026-27). Compare Old and New tax regimes, calculate surcharge, cess, and find the best regime.
Income Tax Calculator FY 2026-27
Income Details
Basic + HRA + Allowances + Bonuses
FD, Savings Account, RD Interest
Annual rental income from house property
Freelance, Consultancy, Commission, etc.
Agricultural income (exempt but included for rate calculation)
Tax deducted by employer, bank, or other deductors
Tax Calculation ResultsNo Tax / Refund
Total Income
₹12,50,000
Taxable Income
₹11,75,000
Total Tax
₹0
Net Tax Payable
₹0
Tax Breakdown
Effective Tax Rate
of your total income
About this calculator
How to Calculate Income Tax in India (FY 2025-26)
Calculating your income tax accurately is the most crucial step in personal financial planning. With the dual tax regime system in India, taxpayers often wonder whether to stick with the Old Regime (which offers deductions like 80C, 80D, HRA) or switch to the New Regime (which offers lower tax rates but fewer deductions). Our Income Tax Calculator helps you make this decision effortlessly.
Understanding the Two Tax Regimes
1. The New Tax Regime (Default Regime): The new tax regime has been made the default option. It offers lower tax rates but requires you to forego most major deductions and exemptions, such as HRA, LTA, Chapter VI-A deductions (80C, 80D, etc.), and interest on housing loans for self-occupied properties. However, a standard deduction of ₹50,000 is now available under the new regime for salaried employees.
New Regime Tax Slabs (FY 2025-26):
- Up to ₹3,000,000: Nil
- ₹3,000,001 - ₹6,000,000: 5%
- ₹6,000,001 - ₹9,000,000: 10%
- ₹9,000,001 - ₹12,000,000: 15%
- ₹12,000,001 - ₹15,000,000: 20%
- Above ₹15,000,000: 30%
(Note: Rebate under Section 87A makes income up to ₹7,00,000 tax-free under the new regime).
2. The Old Tax Regime: The old regime features higher tax rates but allows you to claim around 70 exemptions and deductions. This is highly beneficial if you have substantial investments in PPF, ELSS, Life Insurance (80C), pay health insurance premiums (80D), or pay rent (HRA).
Old Regime Tax Slabs (for individuals below 60 years):
- Up to ₹2,50,000: Nil
- ₹2,50,001 - ₹5,00,000: 5%
- ₹5,00,001 - ₹10,00,000: 20%
- Above ₹10,00,000: 30%
(Note: Rebate under Section 87A makes income up to ₹5,00,000 tax-free under the old regime).
Components of Income
To use the calculator, you'll need to input your income from various sources:
- Income from Salary: Your gross salary before any deductions.
- Income from House Property: Rental income, or interest paid on a home loan.
- Income from Capital Gains: Profits from selling assets like stocks, mutual funds, or real estate.
- Income from Business/Profession: Net profit from your freelance work or business.
- Income from Other Sources: Interest from savings accounts, FDs, dividends, etc.
Common Deductions (Old Regime)
If you opt for the old regime, you can reduce your taxable income using:
- Section 80C: Up to ₹1.5 Lakhs for investments in EPF, PPF, ELSS, Life Insurance, principal repayment of home loan, etc.
- Section 80D: Premium paid for medical insurance (up to ₹25,000 for self/family, additional ₹50,000 for senior citizen parents).
- Section 24(b): Interest paid on home loans up to ₹2 Lakhs for self-occupied property.
- Standard Deduction: A flat ₹50,000 deduction available to all salaried employees and pensioners.
Surcharge and Cess
After calculating your base tax based on the slabs, two additional components may apply:
- Surcharge: Applicable only if your net taxable income exceeds ₹50 Lakhs. The rate varies from 10% to 37% (capped at 25% under the new regime) depending on the income level.
- Health and Education Cess: A flat 4% cess is levied on the total of income tax plus surcharge.
Which Regime Should You Choose?
There is no one-size-fits-all answer. As a general rule of thumb:
- If your total deductions (80C, 80D, HRA, Home Loan Interest) are less than ₹1.5 Lakhs to ₹3.75 Lakhs (depending on your income bracket), the New Regime is generally better.
- If you maximize your 80C (₹1.5L), 80D (₹25k+), and have significant HRA or home loan interest, the Old Regime will likely save you more tax.
Use our calculator to instantly compare both regimes side-by-side and find exactly how much tax you will save!
Formula
Income Tax Calculation Formula
Indian income tax uses progressive tax brackets:
Tax = Sum of (Income in bracket × Tax rate for bracket) - Deductions - Rebates
Tax Slab Calculation Steps
- Determine gross income
- Subtract deductions (80C, 80D, HRA, etc.)
- Calculate taxable income
- Apply applicable tax slabs
- Add cess (if applicable): 4% on tax amount
- Subtract applicable rebates/credits
TDS (Tax Deducted at Source)
TDS is advance tax deducted at the source of income:
TDS Amount = Gross Income × TDS Rate
TDS rates vary by income type:
- Salary: 10-30% (depends on income)
- Interest: 10% (banks deduct TDS on FD interest)
- Dividends: 20%
- Freelance income: 10-30%
Comparison & Examples
Income Tax Slabs (FY 2025-26) - Individuals Below 60 Years
| Income Range | Tax Rate | Tax on ₹5,00,000 Income |
|---|---|---|
| ₹0 - ₹3,00,000 | Nil | ₹0 |
| ₹3,00,001 - ₹7,50,000 | 5% | ₹11,250 |
| ₹7,50,001 - ₹12,50,000 | 20% | N/A |
| ₹12,50,001 - ₹20,00,000 | 30% | N/A |
| Above ₹20,00,000 | 45% | N/A |
Tax Deduction Limits (Section 80C)
| Deduction Type | Maximum Limit | Deductible Amount |
|---|---|---|
| Life Insurance Premium | ₹1,50,000 | ₹50,000 |
| PPF Contribution | ₹1,50,000 | ₹1,50,000 |
| ELSS Investment | ₹1,50,000 | ₹1,50,000 |
| Home Loan Principal | ₹1,50,000 | ₹1,25,000 |
| Tuition Fees | ₹1,50,000 | ₹50,000 |
| Total 80C Limit | ₹1,50,000 | ₹1,50,000 |
Frequently Asked Questions
Which tax regime is better: Old or New?
It depends on your eligible deductions. If your total deductions (under Section 80C, 80D, HRA, home loan interest, etc.) exceed approximately ₹3.75 Lakhs, the Old Regime is typically better. Otherwise, the New Regime, with its lower tax rates and ₹75,000 standard deduction, usually saves you more money.
What is the maximum tax-free income in FY 2025-26?
Under the New Regime, income up to ₹12 Lakhs is effectively tax-free due to the Section 87A rebate of ₹60,000. Under the Old Regime, income up to ₹5 Lakhs is tax-free due to the ₹12,500 rebate.
Can I switch between Old and New tax regimes every year?
Salaried individuals (without business income) can switch between the Old and New tax regimes every year when filing their Income Tax Return. However, individuals with business or professional income can switch to the Old regime only once in their lifetime.
Is the standard deduction available in the New Tax Regime?
Yes, starting from FY 2023-24, the standard deduction was introduced to the New Regime. In the latest budget for FY 2025-26, the standard deduction under the New Regime was increased to ₹75,000 (up from ₹50,000).
What happens if I miss the ITR filing deadline?
A late filing fee of up to ₹5,000 is charged under Section 234F (reduced to ₹1,000 if your total income is below ₹5 Lakhs). Additionally, you will be liable to pay penal interest at 1% per month on the pending tax amount under Section 234A, and you will lose the right to carry forward certain losses.
Are agricultural incomes taxable in India?
Agricultural income is entirely exempt from income tax under Section 10(1) of the Income Tax Act. However, if your non-agricultural income exceeds the basic exemption limit, your agricultural income is added to your total income for the purpose of determining the tax slab rate applicable to your non-agricultural income.
Are gifts from relatives taxable?
No, gifts received from specified relatives (parents, spouse, siblings, etc.) are fully exempt from tax regardless of the amount. However, gifts exceeding ₹50,000 in a year received from non-relatives or friends are fully taxable under "Income from Other Sources."
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Disclaimer
This calculator is provided for informational purposes only. It is not financial, investment, tax, or professional advice. Results are estimates based on the assumptions and inputs you provide. Always consult with a qualified financial advisor or tax professional before making any financial decisions. Past performance is not a guarantee of future results.
Sources & References
The figures, formulas, and guidance behind this Income Tax Calculator India FY 2025-26 draw on authoritative primary sources. For verification and further reading:
- Income Tax Department, Government of India
- Reserve Bank of India
- Securities and Exchange Board of India
- Association of Mutual Funds in India
Frequently Asked Questions
What is the difference between the old and new tax regimes in India?
The old tax regime allows you to claim numerous exemptions and deductions (HRA, LTA, Section 80C, 80D, home loan interest, etc.) before calculating tax on slabs. The new tax regime offers lower slab rates but most exemptions and deductions are not available. The better option depends on how much you can claim in deductions — the calculator lets you compare both regimes side by side.
Which deductions are allowed under the new tax regime for FY 2025-26?
Under the new regime, most popular deductions are not available, but a few remain — including the standard deduction for salaried employees and pensioners, employer's NPS contribution under Section 80CCD(2), and agniveer corpus contributions. The calculator applies these automatically based on your inputs so you see the correct net liability under each regime.
How do I enter income from multiple sources in this calculator?
You can typically enter income under different heads — salary, house property (rental income or loss), capital gains, and other sources — separately. The calculator aggregates them into your gross total income, applies eligible deductions, and then computes tax on the resulting net taxable income. Ensure you input each source accurately to get a reliable estimate.
What is surcharge and how does it affect my tax liability?
Surcharge is an additional levy on the income tax amount (not on income itself) applicable when your total income exceeds certain thresholds. Different surcharge rates apply at different income levels. Additionally, a Health and Education Cess is levied on the combined tax and surcharge amount. The calculator adds both automatically.
Is the tax computed by this calculator exactly what I need to pay?
The calculator gives a reliable estimate for salary and standard income scenarios, but the actual tax liability determined while filing your ITR may differ if you have complex income (e.g., equity capital gains, foreign income, business income, carried-forward losses). Always verify your final tax with a chartered accountant or by using the official income tax portal's computation.
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