Income Tax Calculator — India, New Regime (FY 2025-26)
Estimate your income tax under India's new tax regime for FY 2025-26 (AY 2026-27). The calculator applies the latest slabs, the ₹75,000 standard deduction for salaried taxpayers, the Section 87A rebate, and 4% health & education cess.
How to use this calculator
- Enter your gross annual income in rupees — salary before any deductions.
- Select salaried/pensioner to apply the ₹75,000 standard deduction automatically.
- Press Calculate to see slab-wise tax, the Section 87A rebate if you qualify, cess and total tax.
- The monthly figure approximates the TDS your employer would deduct each month.
Formula used
New regime slabs for FY 2025-26: 0–4L nil · 4–8L at 5% · 8–12L at 10% · 12–16L at 15% · 16–20L at 20% · 20–24L at 25% · above 24L at 30%. If taxable income is up to ₹12,00,000, the Section 87A rebate makes the tax zero.
Example calculation
Salaried income of ₹15,00,000: taxable = 15,00,000 − 75,000 = ₹14,25,000.
Slab tax = 0 + 20,000 + 40,000 + 33,750 = ₹93,750. No rebate (taxable > 12L). Cess = 3,750. Total tax ≈ ₹97,500, or about ₹8,125/month.
How does India's new tax regime work?
The new regime is the default income tax system in India. It offers lower slab rates but drops most exemptions and deductions (like 80C and HRA), keeping only a few — most importantly the ₹75,000 standard deduction for salaried taxpayers and pensioners.
Its headline feature is the Section 87A rebate: if your taxable income is up to ₹12,00,000, your entire tax is rebated to zero. For salaried people, that means income up to ₹12,75,000 can be effectively tax-free. Above that, tax applies from the slabs normally — with marginal relief smoothing the jump just past the threshold.
Why use this calculator?
- Know your tax and approximate monthly TDS before salary negotiations or job changes.
- See instantly whether your income falls inside the ₹12 lakh zero-tax rebate zone.
- Understand slab-wise tax rather than the common misconception that your whole income is taxed at the top rate.
Frequently asked questions
Is income up to ₹12 lakh really tax-free in FY 2025-26?
Under the new regime, yes — if your taxable income (after the ₹75,000 standard deduction for salaried) is up to ₹12,00,000, the Section 87A rebate reduces your tax to zero. A salaried person earning up to ₹12,75,000 gross therefore pays no income tax.
Do I pay 30% on my entire income if I earn above ₹24 lakh?
No. India uses marginal slabs — only the portion above ₹24 lakh is taxed at 30%. Each earlier slice of income is taxed at its own lower rate, so your effective rate is always well below your top slab rate.
What deductions are allowed in the new regime?
Very few: the ₹75,000 standard deduction (salaried/pensioners), employer NPS contribution under 80CCD(2), and a handful of others. Popular deductions like 80C investments, HRA and home-loan interest on self-occupied property are not available.
Should I choose the old regime or the new regime?
It depends on your deductions. If your total deductions (80C, HRA, home loan interest, etc.) are large — roughly above ₹4–4.5 lakh for higher incomes — the old regime can still win. Otherwise the new regime's lower rates and the 87A rebate usually make it better. Compare both before filing.