Income Tax Calculator
Compare old and new regime tax for Indian taxpayers FY 2026–27.
Use this free income tax calculator to compare salary, deductions, HRA, and TDS for the chosen financial year. See slab-wise tax under both regimes and identify which one saves you more tax.
Configure your taxes
Enter income and deduction details.
Mode
Advanced mode adds HRA, LTA, Section 24, education loan interest, and other deduction controls.
Financial Year & Age
Select the financial year for which you want to calculate income tax.
Age category
Senior (60-79) and super-senior (80+) get higher exemption limits under the old regime.
Income
Gross annual income
₹12,00,000
Automatically calculated as salary income + other income to avoid double counting rental income.
Key Deductions (Old Regime)
TDS Details
Results summary
Tax comparison
New regime saves you ₹95,701
The new regime's lower slab rates save ₹95,701 compared to the old regime, even without most deductions.
Old Regime
₹95,701
No home loan interest claimed.
New Regime
Better for you₹0
No home loan interest claimed.
Gross income
₹12,00,000
≈ 12.00 L
Tax saving
₹95,701
FY / Age
2026-27 / Below 60
| Slab (Old) | Rate | Tax |
|---|---|---|
| ₹0 – ₹2,50,000 | Nil | ₹0 |
| ₹2,50,000 – ₹5,00,000 | 5% | ₹12,500 |
| ₹5,00,000 – ₹10,00,000 | 20% | ₹79,520 |
| Slab (New) | Rate | Tax |
|---|---|---|
| ₹0 – ₹4,00,000 | Nil | ₹0 |
| ₹4,00,000 – ₹8,00,000 | 5% | ₹20,000 |
| ₹8,00,000 – ₹12,00,000 | 10% | ₹27,500 |
Visual breakdown
Overview
What is an Income Tax Calculator? How It Works in India
An income tax calculator estimates tax payable under the old and new tax regimes using your income, deductions, and applicable rules for the chosen financial year. It is essential for Indian salaried taxpayers during declaration season, TDS planning, and ITR preparation.
Key Features of This Calculator
Compares old and new regime tax side by side.
Supports salary income, deductions, HRA, and property adjustments.
Shows slab-wise calculation, rebate, surcharge, and cess impact.
Useful for FY-based tax planning and TDS estimation.
How it works
Income Tax Formula & Slab Rates Explained for India
The calculator first derives taxable income under each regime, then applies slab rates. Rebate, surcharge, and cess are added based on the selected financial year and your income profile.
Income Tax Formula
Total Tax = Slab-wise tax on taxable income - rebate + surcharge + 4% cess
Gross income
G
Salary plus other income
Deductions
D
Eligible claims
Taxable income
T
Income under slabs
Total tax
Tax
After cess and rebate
Formula context
Review the formula flow to see how the core inputs combine into the final output.
1. Build gross and taxable income
Salary, other income, deductions, and property-related adjustments are combined to derive taxable income under each regime.
2. Apply slabs, rebate, surcharge, and cess
The tax engine computes slab-wise tax and then applies rebate, surcharge, and 4% cess wherever applicable.
3. Compare regimes side by side
The result shows tax payable, savings difference, and which regime appears more efficient for the entered assumptions.
Quick guide
Tax Example: ₹12 Lakh Salary, Old vs New Regime
If your salary income is ₹12 lakh and you claim deductions such as Section 80C (₹1.5 lakh), 80D (₹25,000), and NPS (₹50,000) under the old regime, the calculator can show whether the deduction benefit beats the lower slab rates in the new regime.
Worked example
Gross income
Rs. 12,00,000
Deductions
Rs. 2,00,000
Taxable income
Rs. 10,00,000
New regime tax
Rs. 54,600
Illustrative tax flow
Taxable income = 12,00,000 - 2,00,000 = Rs. 10,00,000
Slab tax under the new regime on Rs. 10,00,000 = Rs. 52,500
Health and education cess at 4% = Rs. 2,100
Total tax = Rs. 54,600
Use the result as a decision-support view before payroll declarations or return filing, then reconcile it with your actual Form 16, AIS, and investment proofs.
Tax information
Tax information
This page is already tax-specific, but it remains a planning calculator. Final liability can still change because of payroll adjustments, exact deduction eligibility, capital gains, relief provisions, and filing details.
Financial year selection, deduction profile, age-related rules where relevant, and house-property treatment can significantly change the old-versus-new recommendation.
Calculator education
How the tax comparison is calculated
This calculator compares old and new regimes by applying deductions, slab rates, rebate rules, surcharge, and cess to the financial year you select.
1. Build gross and taxable income
Salary, other income, deductions, and property-related adjustments are combined to derive taxable income under each regime.
2. Apply slabs, rebate, surcharge, and cess
The tax engine computes slab-wise tax and then applies rebate, surcharge, and 4% cess wherever applicable.
3. Compare regimes side by side
The result shows tax payable, savings difference, and which regime appears more efficient for the entered assumptions.
Tax Information
Tax information
This page is already tax-specific, but it remains a planning calculator. Final liability can still change because of payroll adjustments, exact deduction eligibility, capital gains, relief provisions, and filing details.
Key Drivers
What affects the estimate
Financial year selection, deduction profile, age-related rules where relevant, and house-property treatment can significantly change the old-versus-new recommendation.
Planning Note
Good to know
Use the result as a decision-support view before payroll declarations or return filing, then reconcile it with your actual Form 16, AIS, and investment proofs.
Use cases
Tax Scenarios: Regime Choice, Deductions & TDS in India
Tax calculations for Indian taxpayers become more actionable when tied to the real salary and deduction choices made each financial year.
Old vs New Regime: ₹15 Lakh CTC
At ₹15 lakh CTC with ₹2.5 lakh in deductions (80C, 80D, NPS), the old regime may save ₹10,000–20,000 more than the new regime. But if deductions are below ₹1.5 lakh, the new regime's lower slabs typically win.
Salary Declaration with HRA & Home Loan
If you pay ₹30,000/month rent and have a home loan interest of ₹2 lakh/year, the old regime can offer ₹4–5 lakh in additional deductions. Use this calculator alongside the HRA calculator for an accurate picture.
TDS Refund or Additional Tax Payable
If your employer deducted excess TDS based on declared investments but you didn't complete them, you may owe additional tax. Enter actual TDS and deductions to estimate refund or additional payable before filing ITR.
FAQ
Frequently Asked What is an Income Tax Calculator How It Works in India Questions
These FAQs explain regime comparison, rebates, deductions, and how to interpret the slab-wise tax output for Indian taxpayers.
The old tax regime allows you to claim various deductions and exemptions (HRA, LTA, 80C, 80D, etc.) to reduce taxable income. The new tax regime offers lower slab rates but removes most deductions. For FY 2025-26, the new regime is the default, but you can opt for the old regime if your deductions are substantial enough to offset the higher slab rates.
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