Income Tax Calculator India 2025-26: Complete Guide
Confused about how much income tax you'll pay in FY 2025-26? With the new regime offering zero tax up to ₹12 lakh and the old regime allowing multiple deductions, picking the right option can save you thousands. This guide explains exactly how to calculate your tax and use the free calculator.
Table of Contents
Income Tax Basics for FY 2025-26
Income tax in India is levied on your total income — salary, business income, capital gains, house property, and other sources. For FY 2025-26 (Assessment Year 2026-27), the Income Tax Act 2025 makes the new tax regime the default. If you want the old regime, you need to explicitly opt in.
The basic exemption limit under the new regime is ₹3 lakh. However, with the standard deduction (₹75,000 for salaried employees) and the Section 87A rebate (applicable up to ₹12 lakh taxable income), most salaried individuals with gross income up to ₹12.75 lakh pay zero tax under the new regime.
Tax Slabs: Old vs New Regime
The two regimes differ in how income is taxed and what deductions are allowed:
New Regime Tax Slabs (FY 2025-26)
| Income Slab | Tax Rate |
|---|---|
| Up to ₹3 lakh | Nil |
| ₹3 lakh – ₹7 lakh | 5% |
| ₹7 lakh – ₹10 lakh | 10% |
| ₹10 lakh – ₹12 lakh | 15% |
| ₹12 lakh – ₹15 lakh | 20% |
| Above ₹15 lakh | 30% |
Old Regime Tax Slabs (FY 2025-26)
| Income Slab | Tax Rate |
|---|---|
| Up to ₹2.5 lakh | Nil |
| ₹2.5 lakh – ₹5 lakh | 5% |
| ₹5 lakh – ₹10 lakh | 20% |
| Above ₹10 lakh | 30% |
How to Calculate Your Tax in 4 Steps
- Compute gross total income. Add up salary (before deductions), rental income, capital gains, and any other income.
- Apply deductions (old regime only). Subtract standard deduction (₹50,000), HRA exemption, 80C (up to ₹1.5L), 80D, and other eligible deductions to arrive at net taxable income.
- Apply tax slabs. Use the relevant slab rates to compute base tax, then add 4% Health and Education Cess.
- Check 87A rebate. If taxable income ≤ ₹7 lakh (old) or ≤ ₹12 lakh (new), a full rebate may reduce your tax to zero.
Key Deductions You Shouldn't Miss
These are only available under the old regime, but they can significantly reduce your tax:
- Section 80C (₹1.5 lakh): PPF, ELSS, home loan principal, life insurance premiums, NSC, tax-saving FDs.
- Section 80D (₹25,000–₹1 lakh): Health insurance premiums for self and parents.
- HRA Exemption: Significant savings for salaried employees paying rent in metro cities.
- Home Loan Interest (Section 24b): Up to ₹2 lakh on interest paid for a self-occupied property.
- NPS Section 80CCD(1B): Additional ₹50,000 beyond the 80C limit for NPS contributions.
Which Regime Is Right for You?
A simple rule of thumb: if your total deductions (80C + HRA + 80D + home loan interest) exceed roughly ₹3–4 lakh, the old regime is likely better. If you have fewer deductions or your income is below ₹12.75 lakh, the new regime wins because of the zero-tax benefit.
For example, a salaried employee with ₹15 lakh gross income and ₹3 lakh in deductions typically saves ₹15,000–₹20,000 more under the new regime. But the same employee with ₹4.5 lakh in deductions often does better under the old regime.
Using the Taficon Tax Calculator
The Taficon tax calculator lets you compare both regimes side-by-side in real time. Enter your salary, deductions, and rental income — and it instantly shows you the tax payable under both regimes along with the savings from choosing the better one.
It's completely free, runs in your browser, and requires no signup. All calculations happen locally — your data never leaves your device.
Try the Free Tax Calculator
Compare old vs new regime instantly. No signup required.