Income Tax
Calculator (New Regime)
Slab-wise India income tax under the New Regime plus 4% cess — with editable, dated FY2025-26 slabs you can verify yourself.
Your income
Enter income after the standard deduction and any New-Regime-eligible deductions. The New Regime has limited deductions — verify what applies to you.
Estimated tax
What is the New Tax Regime?
The New Tax Regime is set out in Section 115BAC of the Income-Tax Act, 1961 (and echoed in Section 202 of the new Income-Tax Act, 2025). It replaces the old regime's patchwork of deductions and exemptions with a simpler structure: wider, lower slabs applied directly to your gross income (minus the standard deduction). Since FY2023-24 the new regime is the default — you must actively opt in to the old regime if you want it.
The trade-off is straightforward: you get lower marginal rates in exchange for giving up most deductions. For a salaried professional with few investments, that trade is usually favourable. For someone with large 80C contributions, HRA, and home-loan interest, the old regime can still win — the only way to know is to compare both on your actual numbers.
New Regime Slab Rates — FY2025-26 (AY2026-27)
India's income tax uses a progressive slab system: only the slice of income that falls inside each slab is taxed at that slab's rate. You never pay your top rate on your entire income.
| Taxable income (₹) | Tax rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
These slabs are stored in the editable TAX_SLABS array at the top of this page's script. If the Finance Act changes the slabs, that is the only place you need to update.
How the Calculation Works
The calculator applies each slab rate only to the income that sits within that slab's band. Here is the formula for a single slab:
Slab tax = min(income, slab ceiling) − slab floor, then multiply by the slab rate.
All slab amounts are added together to produce the tax before cess. A flat 4% health and education cess is then applied on that subtotal to arrive at your total liability.
Worked Examples
Example 1 — ₹10,00,000 taxable income
| Slab | Taxable slice | Rate | Tax |
|---|---|---|---|
| Up to ₹4,00,000 | ₹4,00,000 | 0% | ₹0 |
| ₹4–8 lakh | ₹4,00,000 | 5% | ₹20,000 |
| ₹8–12 lakh | ₹2,00,000 | 10% | ₹20,000 |
| Tax before cess | ₹40,000 | ||
| 4% cess | ₹1,600 | ||
| Total tax liability | ₹41,600 | ||
Example 2 — ₹15,00,000 taxable income
| Slab | Taxable slice | Rate | Tax |
|---|---|---|---|
| Up to ₹4,00,000 | ₹4,00,000 | 0% | ₹0 |
| ₹4–8 lakh | ₹4,00,000 | 5% | ₹20,000 |
| ₹8–12 lakh | ₹4,00,000 | 10% | ₹40,000 |
| ₹12–16 lakh | ₹3,00,000 | 15% | ₹45,000 |
| Tax before cess | ₹1,05,000 | ||
| 4% cess | ₹4,200 | ||
| Total tax liability | ₹1,09,200 | ||
Zero Tax on Income Up to ₹12 Lakh — How It Works
Under the new regime, Section 87A provides a rebate of up to ₹60,000 that wipes out the slab-wise tax for taxpayers with normal-slab income up to ₹12 lakh. For salaried employees the effective threshold rises to ₹12.75 lakh once the ₹75,000 standard deduction is applied. A quick illustration:
- Gross salary: ₹12,75,000
- Less standard deduction: ₹75,000
- Taxable salary: ₹12,00,000
- Slab-wise tax (nil on first ₹4L, 5% on next ₹4L = ₹20,000, 10% on next ₹4L = ₹40,000): ₹60,000
- Less Section 87A rebate: ₹60,000
- Net tax payable: Nil
The rebate does not extend to special-rate income such as short-term capital gains on listed equities (Section 111A) or long-term capital gains (Section 112A). If your income includes such components, those are taxed at their own flat rates outside the slab system.
New Regime vs Old Regime — Salary-wise Comparison
The table below compares tax under both regimes on taxable income (after the standard deduction) assuming no other deductions are claimed:
| Taxable income | New Regime | Old Regime | You save |
|---|---|---|---|
| ₹8 lakh | Nil (§87A) | ₹75,400 | ₹75,400 |
| ₹10 lakh | Nil (§87A) | ₹1,17,000 | ₹1,17,000 |
| ₹12 lakh | Nil (§87A) | ₹1,79,400 | ₹1,79,400 |
| ₹15 lakh | ₹1,09,200 | ₹2,73,000 | ₹1,63,800 |
| ₹20 lakh | ₹2,08,000 | ₹4,29,000 | ₹2,21,000 |
| ₹25 lakh | ₹3,43,200 | ₹5,85,000 | ₹2,41,800 |
| ₹30 lakh | ₹4,99,200 | ₹7,41,000 | ₹2,41,800 |
These figures include 4% cess. Surcharge above ₹50 lakh is not included. Old-regime figures assume no deductions other than the standard deduction — actual savings will differ if you claim 80C, 80D, HRA etc.
Deductions: What Survives in Each Regime
The starkest practical difference between the two regimes is what you can deduct:
| Benefit | Old Regime | New Regime |
|---|---|---|
| Standard deduction | ₹50,000 | ₹75,000 |
| Section 87A rebate | ₹12,500 (up to ₹5L) | ₹60,000 (up to ₹12L) |
| Section 80C (PF, ELSS, LIC etc.) | Allowed | Not allowed |
| HRA exemption | Allowed | Not allowed |
| Home-loan interest (self-occupied) | Allowed | Not allowed |
| NPS — employer contribution (80CCD(2)) | Allowed | Allowed |
| Section 80D (health insurance) | Allowed | Not allowed |
Surcharge on High Incomes
Above ₹50 lakh, a surcharge is levied on the income-tax amount (before cess). The new regime caps surcharge at 25% for the highest band, unlike the old regime which went to 37%:
| Income range | Old Regime surcharge | New Regime surcharge |
|---|---|---|
| ₹50 lakh – ₹1 crore | 5% | 5% |
| ₹1 crore – ₹2 crore | 15% | 15% |
| ₹2 crore – ₹5 crore | 25% | 25% |
| Above ₹5 crore | 37% | 25% |
This calculator does not model surcharge. If your income exceeds ₹50 lakh, use the slab breakdown only as a floor estimate and consult a CA for the full picture.
How to Use This Calculator
- Enter your annual taxable income — this should be income after the standard deduction (₹75,000 for salaried) and any other New-Regime-eligible adjustments.
- Click Calculate tax or simply type your income — the result updates instantly.
- The output shows tax before cess, the 4% cess amount, and a slab-by-slab breakdown so you can see exactly which band each rupee falls into.
- The effective rate shown is your total tax as a percentage of your gross taxable income — it will always be lower than your top marginal slab rate because the progressive system only taxes each slice at the band's rate.
- To verify or update slabs, open the page source and look for the
TAX_SLABSarray — it is clearly labelled with the FY and can be changed in one place if rates change.
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FAQ
What are the New Regime slabs for FY2025-26?
As configured here: up to ₹4 lakh nil, ₹4–8 lakh 5%, ₹8–12 lakh 10%, ₹12–16 lakh 15%, ₹16–20 lakh 20%, ₹20–24 lakh 25%, and above ₹24 lakh 30%, plus 4% cess. These are stored in the editable TAX_SLABS array — always verify against the current Finance Act before filing.
Is the new regime better than the old one?
For most salaried taxpayers with modest investments, yes — the lower slabs and ₹60,000 Section 87A rebate (making income up to ₹12 lakh tax-free) make the new regime win by a wide margin. If you have a large 80C portfolio, HRA, and home-loan interest deductions, run the numbers in both regimes. The crossover point varies by income level and deduction profile.
Can I switch between regimes each year?
Salaried taxpayers can choose each financial year. Taxpayers with business income must file Form 10-IEA to leave the new (default) regime and can generally switch only once back to the old one. Check with your CA or the ITD portal for the current procedure.
Is income up to ₹12 lakh really tax-free?
Yes — for normal-slab income the Section 87A rebate eliminates tax up to ₹12 lakh (₹12.75 lakh for salaried after the standard deduction). The rebate does not cover special-rate income like STCG under Section 111A or LTCG under Section 112A — those components remain taxable at their flat rates regardless of total income.
What deductions survive in the new regime?
Very few. The main ones are the ₹75,000 standard deduction for salaried employees and the employer's NPS contribution under Section 80CCD(2). Popular deductions — 80C (PF, ELSS, LIC), 80D (health insurance), HRA, and self-occupied home-loan interest — are not available. Interest on a let-out property's home loan can still be set off.
Why does my effective rate look lower than my slab?
Because the slab system is progressive. Your highest slab rate applies only to the income inside that slab, so your effective (average) rate across the whole income is always lower than your top marginal slab rate. For example, at ₹15 lakh the top marginal rate is 15% but the effective rate is about 7.3%.
Does this include surcharge and rebate?
No. This estimator computes slab-wise tax plus 4% cess only. Section 87A rebate, surcharge on high incomes (applicable above ₹50 lakh) and deduction limits are not modelled. Treat this as a quick estimate — consult a tax professional for your actual filing.