Income Tax Calculator
Calculate your exact income tax from salary, exemptions and deductions for the new or old regime (FY 2025-26).
Formula last reviewed 4 August 2026 · How we verify our calculators
Total tax payable (new regime)
- Taxable income
- ₹11,25,000
- Income tax (after 87A rebate)
- ₹0
- Surcharge
- ₹0
- Health & education cess (4%)
- ₹0
- Effective tax rate
- 0.0%
- Annual take-home
- ₹12,00,000
- Monthly take-home
- ₹1,00,000
Updates live as you type
Frequently asked questions
No. Enter your gross salary, HRA, rent and deductions — the calculator derives taxable income and applies the standard deduction, HRA exemption and 87A rebate automatically.
The new regime allows the ₹75,000 standard deduction but disallows HRA exemption and most Chapter VI-A deductions (80C, 80D, etc.). Those only reduce tax under the old regime.
Six steps, one wrong number, and your tax bill is off
Standard deduction, HRA exemption, Chapter VI-A deductions, slab tax, the Section 87A rebate, surcharge, cess — working out income tax by hand means chaining all of that together in order, and a slip at any single step throws off everything downstream of it. This calculator runs the full chain for FY 2025-26 (AY 2026-27) so you don't have to trust your own arithmetic on any one of those steps.
What actually happens between "gross salary" and "tax owed"
Enter gross salary, HRA and rent details, other income, and deductions if you want the old-regime figure too. The calculator first works out your HRA exemption — the *least* of actual HRA received, rent paid minus 10% of basic, or 50%/40% of basic depending on metro versus non-metro — since HRA exemption is a "smallest of three" rule that trips people up doing it manually. From there it applies your chosen regime's FY 2025-26 slabs (0% up to ₹4 lakh, stepping up to 30% above ₹24 lakh under the new regime), subtracts the ₹75,000 (new) or ₹50,000 (old) standard deduction, applies the Section 87A rebate if your income qualifies, then layers on surcharge for high incomes and a flat 4% health and education cess.
A ₹12 lakh salary, two regimes, two very different outcomes
At the defaults — ₹12,00,000 gross salary, ₹8,00,000 basic, ₹2,00,000 HRA, ₹1,80,000 rent in a metro city, standard 80C/80D deductions — the HRA exemption comes to ₹1,00,000. Run it through the new regime and taxable income lands at ₹11,25,000, but that's under the ₹12,00,000 Section 87A rebate threshold, so tax payable is ₹0. Run the identical profile through the old regime instead, claiming HRA plus all deductions, and taxable income drops to ₹6,00,000 — yet tax comes to ₹33,800, because the old regime's rebate threshold sits at a much lower ₹5 lakh. For this exact profile, the new regime wins by the full ₹33,800 — but that outcome isn't universal. Larger HRA claims or bigger 80C/home-loan deductions can flip it, which is exactly why the Old vs New Regime calculator exists as a companion to this one, to test your specific numbers rather than a rule of thumb.
Sources
- Income Tax Department, Government of India — slab rates and Section 87A rebate, FY 2025-26
- Union Budget 2025-26 — new tax regime slab and standard deduction changes