# Income Tax Calculator (Estimate)

> Under the new tax regime for FY 2025-26 and FY 2026-27, income up to ₹4 lakh is tax-free and the rest is taxed in slabs of 5% to 30%. Resident individuals with taxable income up to ₹12 lakh pay no tax because of the Section 87A rebate, and salaried employees also get a ₹75,000 standard deduction — so salary up to ₹12.75 lakh is effectively tax-free.

Interactive calculator: https://www.industax.com/calculators/income-tax

- **New regime tax-free up to:** ₹12 lakh (₹12.75L salaried)
- **Standard deduction (new):** ₹75,000
- **Health & education cess:** 4% of tax

## New tax regime slabs (FY 2025-26 and FY 2026-27)

The new regime is the default. You don't need to opt in, but you give up most deductions such as 80C, 80D and HRA. The slabs below apply to individuals of all ages.

| Taxable income | 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% |

## Old tax regime slabs

The old regime keeps deductions and exemptions such as 80C, 80D, HRA and home-loan interest. Senior citizens (60+) get a ₹3 lakh basic exemption and super senior citizens (80+) ₹5 lakh. The Section 87A rebate under the old regime is ₹12,500 for income up to ₹5 lakh.

| Taxable income (below 60) | Rate |
| --- | --- |
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |

## Rebate, surcharge and cess

- Section 87A rebate (new regime): up to ₹60,000 for taxable income ≤ ₹12 lakh, with marginal relief just above
- The rebate doesn't apply to tax on special-rate income such as equity capital gains
- Surcharge: 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore
- Old regime only: 37% surcharge above ₹5 crore
- Health and education cess: 4% on tax plus surcharge
- Capital gains on listed equity are taxed at 20% (short-term) and 12.5% (long-term), not at slab rates

## How to use this calculator

Enter your taxable income after the standard deduction and any deductions your regime allows. The slab table is pre-filled with the new-regime rates and is editable, so you can switch to the old-regime slabs or an older year. Add 4% cess; add surcharge separately if your income crosses ₹50 lakh.

## Worked example: salary of ₹15 lakh under the new regime

1. Gross salary ₹15,00,000 − standard deduction ₹75,000 = taxable income ₹14,25,000.
2. Slab tax: ₹0 on the first ₹4L + ₹20,000 (5% of ₹4L) + ₹40,000 (10% of ₹4L) + ₹33,750 (15% of ₹2.25L) = ₹93,750.
3. No rebate, since taxable income is above ₹12 lakh.
4. Cess at 4% = ₹3,750.

**Result:** Total tax ≈ ₹97,500 — about 6.5% of gross salary.

## FAQs

### Is income up to ₹12 lakh tax-free in the new regime?

Yes, for resident individuals. Tax computed on taxable income up to ₹12 lakh is fully offset by the Section 87A rebate of up to ₹60,000. For salaried people, the ₹75,000 standard deduction takes that to ₹12.75 lakh of salary. The rebate doesn't cover special-rate income such as capital gains on shares.

### Which regime is better for me?

The new regime is better for most people with few deductions. The old regime can win if you claim large deductions — for example HRA, the full ₹1.5 lakh under 80C, ₹50,000 NPS, health insurance and home-loan interest. Use our regime comparator to check with your own numbers.

### Have the slabs changed for FY 2026-27?

No. The new-regime slabs, the ₹75,000 standard deduction and the ₹12 lakh rebate limit introduced by the Finance Act 2025 continue for FY 2026-27, the first tax year under the Income-tax Act, 2025.

## Official sources

- Income Tax Department: https://www.incometax.gov.in/
- incometaxindia.gov.in: https://www.incometaxindia.gov.in/

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Canonical page: https://www.industax.com/calculators/income-tax
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.