India Income Tax Estimator
Estimate India income tax under new or old regime for FY 2025–26 / AY 2026–27. Includes standard deduction, 87A rebate, and 4% cess. Not tax advice.
Added May 8, 2026 · Updated Aug 12, 2026
Scenario A
Input
Result
Enter a value for gross salary to see your result.
How it works
Estimates India income tax under the new or old regime using official slab tables, standard deduction, and Section 87A rebate. Includes 4% Health & Education Cess. Illustrative only — consult a tax professional or verify at incometax.gov.in.
Step by step
- 01Enter gross salary and choose annual or monthly input.
- 02Select the tax regime — New Regime is the default from FY 2023–24.
- 03Standard deduction (₹75,000 new / ₹50,000 old) is subtracted for salaried employees.
- 04Marginal slab rates apply progressively on the taxable income.
- 05Section 87A rebate reduces tax to nil if taxable income is within the threshold.
- 064% Health & Education Cess is added to the final tax.
- 07Take-home = Annual Gross − (Tax + Cess).
Examples
₹12 lakh annual, new regime, FY 2025–26
Taxable income = ₹12L − ₹75K standard deduction = ₹11.25L. Tax on ₹11.25L ≈ ₹52,500. Section 87A rebate (limit ₹12L) wipes tax to nil.
Inputs
- Gross Salary:
- 1200000
- Salary period:
- annual
- Tax regime:
- new
- Salaried employee (claim standard deduction):
- true
- Financial year:
- 2025-26
Result
- Income tax + cess:
- 0
- Effective tax rate:
- 0
₹20 lakh annual, new regime, FY 2025–26
Taxable income = ₹20L − ₹75K = ₹19.25L. Tax ≈ ₹1,79,250. With 4% cess → ₹1,86,420; effective rate ≈ 9.3%.
Inputs
- Gross Salary:
- 2000000
- Salary period:
- annual
- Tax regime:
- new
- Salaried employee (claim standard deduction):
- true
- Financial year:
- 2025-26
Result
- Effective tax rate:
- 9.62
Frequently asked questions
What is the difference between FY and AY in India?
FY (Financial Year) is the year in which income is earned — 1 April to 31 March. AY (Assessment Year) is the following year in which you file your ITR and pay the tax. For example, income earned in FY 2025–26 (Apr 2025 – Mar 2026) is assessed in AY 2026–27.
Which regime is better — new or old?
The new regime offers lower slab rates without most deductions. The old regime allows deductions (80C, HRA, home loan interest, etc.) but at higher slab rates. If your total eligible deductions exceed roughly ₹3–3.75 lakh (varies by income), the old regime may save more tax. Run both and compare.
Is income up to ₹12 lakh truly tax-free in FY 2025–26?
Under the new regime for FY 2025–26, the Section 87A rebate wipes out tax for taxable income up to ₹12 lakh. For salaried individuals, the ₹75,000 standard deduction means gross income up to ₹12.75 lakh results in zero tax. Above that threshold, the full slab tax (no rebate) applies.
What is the Section 87A rebate?
Section 87A provides a tax rebate for individuals whose net taxable income is below a threshold. For FY 2025–26 under the new regime, the rebate covers up to ₹60,000 of tax for income up to ₹12 lakh, effectively making it zero.
Does this include the 4% cess?
Yes. A 4% Health & Education Cess is applied on the income tax amount (after the 87A rebate) and is included in the total shown as 'Income tax + cess'.
Why is surcharge not included?
Surcharge applies to high earners: 10% for income between ₹50L–₹1Cr, 15% for ₹1Cr–₹2Cr, and higher rates above that. Since it affects a smaller subset, it is excluded from this illustrative estimate. If your income exceeds ₹50 lakh, your actual tax will be higher.
How do I estimate old regime take-home with 80C and HRA deductions?
This tool does not model individual deductions. To estimate old regime take-home with 80C, HRA, or home loan interest, subtract your total eligible deductions from gross salary and enter the reduced figure as gross before selecting the old regime.