Income tax calculator (FY 2025-26)
₹0
Total tax payable
₹11,25,000
Taxable income
0.0%
Effective tax rate
Estimate only, based on FY 2025-26 slabs — not tax advice. Doesn't model marginal relief near the rebate threshold or deductions beyond the standard deduction. Verify with a tax professional before filing.
Compare your estimated income tax under the new regime (with its ₹4L nil slab and rebate up to ₹12L taxable income) or the old regime (with its ₹2.5L nil slab and standard deductions) for FY 2025-26. Enter your annual income, pick a regime, and see taxable income, total tax, and effective rate update instantly. Everything runs in your browser using the published slab rates — this is an estimate, not tax advice.
How slab taxation actually works
A persistent misconception is that crossing into a higher slab taxes your entire income at that rate. It does not. Slabs are marginal: only the portion of income within each band is taxed at that band's rate. Earning one rupee more than a threshold means that single rupee is taxed at the higher rate, not everything below it. Nobody is ever worse off from earning slightly more.
Choosing between the regimes
The new regime offers lower rates and a higher standard deduction but removes most exemptions. The old regime keeps deductions like 80C, HRA, and home loan interest but taxes at higher rates. Which wins depends entirely on your deductions: someone paying substantial rent with a home loan and full 80C investments often does better on the old regime, while someone with few deductions almost always does better on the new one. Run both.
What this estimate leaves out
This applies the published slabs, the standard deduction, the Section 87A rebate, and 4 percent cess. It does not model surcharge on high incomes, marginal relief just above the rebate threshold, or any deduction beyond the standard one. That makes it a planning estimate, not a filing calculation — verify with a tax professional or the department's own utility before you rely on a number for anything consequential.
Frequently asked questions
- Which regime should I choose?
- It depends on your deductions — the new regime has lower slab rates but fewer deductions, while the old regime allows deductions like 80C and HRA that can lower taxable income significantly. Compare both with your actual numbers.
- Why is my tax zero even though I have income?
- Section 87A gives a full rebate on tax if your taxable income is at or below ₹12,00,000 (new regime) or ₹5,00,000 (old regime), effectively making tax nil up to that point.
- Does this account for marginal relief just above the rebate threshold?
- No — income just above the rebate threshold gets "marginal relief" so tax doesn't jump disproportionately, and this calculator doesn't model that nuance. Verify with a tax professional if your income is close to ₹12L (new) or ₹5L (old).
- Is this official tax advice?
- No, this is an estimate based on published FY 2025-26 slab rates for general planning purposes. Always verify with a qualified tax professional or the Income Tax Department before filing.
- Will earning slightly more push my whole income into a higher tax rate?
- No. Slabs are marginal, so only the income above each threshold is taxed at the higher rate. Earning more never reduces your take-home.
- Which regime should I pick?
- It depends on your deductions. Heavy 80C investment, HRA, and home loan interest usually favour the old regime; few deductions favour the new one. Compare both with your real numbers.