Income Tax Calculator FY 2025-26
New tax regime · AY 2026-27 · India
Estimate income tax on eligible salary or employer pension, including standard deduction, Section 87A rebate, marginal relief around ₹12 lakh and 4% cess.
Salary/employer-pension-only estimate for resident individuals. Excludes family pension, other income, special-rate income, surcharge, additional deductions and TDS/refunds. Supported taxable income: up to ₹50 lakh.
Your estimated tax breakdown
- Gross salary / eligible employer pension
- Standard deduction applied (up to ₹75,000)
- Net taxable income (rounded to ₹10)
- Tax on income (slabs)
- Less: Section 87A rebate
- Less: marginal relief near ₹12 lakh
- Tax after relief / rebate
- Health & Education Cess (4%)
Estimated Total Tax Payable:
Final estimate rounded to the nearest ₹10. This is annual tax before TDS, advance tax or credits, not the balance due or refund. No surcharge applies within the supported taxable-income range.
Educational estimate for FY 2025-26 / AY 2026-27, subject to Section 87A eligibility. Verify your final return using the Income Tax Department guidance. This widget does not send or store the amount you enter; other site scripts are governed by the site’s privacy policy.
Income Tax Calculator for FY 2025-26 (AY 2026-27)
Want to know how much income tax you may have to pay under India’s new tax regime?
Use the calculator above to estimate your income tax on salary or eligible employer pension income for FY 2025-26 (AY 2026-27). It considers the ₹75,000 standard deduction, applicable new-regime tax slabs, Section 87A rebate for eligible resident individuals, and 4% Health & Education Cess.
Important: This is an estimation tool for ordinary slab-rate income. It does not replace the calculation made by the Income Tax Department when you file your return.
Using the Income Tax Calculator — FY 2025-26 New Tax Regime
Enter your annual salary or eligible employer pension income in the calculator above to get an estimated tax calculation.
Gross Annual Salary / Pension Income: Enter your gross annual amount before the standard deduction.
The calculator requires confirmation that you are an eligible resident individual for the purpose of Section 87A and that your income is taxable under the normal slab rates of the new tax regime.
What the calculator considers
- ₹75,000 standard deduction for eligible salary/eligible employer pension income
- FY 2025-26 new-regime tax slabs
- Section 87A rebate of up to ₹60,000 where applicable
- 4% Health & Education Cess
- Basic marginal-relief calculation around the ₹12 lakh taxable-income threshold
What it does not calculate
This simplified calculator does not separately calculate:
- special-rate income such as certain capital gains
- business/professional income
- surcharge
- income-specific exemptions or deductions not entered into the calculator
- complete ITR liability, TDS reconciliation or refund
For a final tax calculation, use the official Income Tax Department services or consult a qualified tax professional.
FY 2025-26 New Tax Regime Tax Slabs
For AY 2026-27, the new tax regime uses the following slab rates:
| 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 rates are published by the Income Tax Department for AY 2026-27.
How the Income Tax Calculator Works
The calculation follows a simple sequence.
Step 1: Start with gross salary or eligible employer pension income
Suppose your gross annual salary is ₹12,75,000.
Step 2: Apply the standard deduction
For eligible salary or eligible employer pension income, the standard deduction under the new regime is ₹75,000.
₹12,75,000 − ₹75,000 = ₹12,00,000 taxable income
Step 3: Calculate tax using the slabs
On ₹12 lakh of taxable income, the slab calculation gives:
- First ₹4 lakh: Nil
- Next ₹4 lakh: 5% = ₹20,000
- Next ₹4 lakh: 10% = ₹40,000
Total slab tax = ₹60,000
Step 4: Apply Section 87A rebate where eligible
An eligible resident individual with taxable income up to ₹12 lakh may receive a rebate of up to ₹60,000 under Section 87A.
Therefore, in this example:
₹60,000 tax − ₹60,000 rebate = ₹0 tax
The Income Tax Department confirms the ₹60,000 new-regime rebate limit for eligible resident individuals with taxable income not exceeding ₹12 lakh.
Does ₹12.75 Lakh Salary Mean Zero Tax?
For a qualifying salary/eligible employer pension example, ₹12.75 lakh gross income can result in ₹12 lakh taxable income after the ₹75,000 standard deduction.
If the taxpayer is eligible for the Section 87A rebate and the income is otherwise taxable at normal slab rates, the calculated income-tax liability before any other considerations can be reduced to zero.
That does not mean every person earning ₹12.75 lakh has zero total tax in every situation. The result depends on the type and composition of income and the taxpayer’s eligibility.
What Is Section 87A Rebate?
Section 87A provides a tax rebate to eligible resident individuals subject to the applicable conditions.
Under the FY 2025-26 new tax regime, the rebate can be up to ₹60,000 where taxable income does not exceed ₹12 lakh.
The rebate should not be treated as a blanket exemption from tax for every type of income. Certain special-rate income can have separate tax treatment.
What Happens When Taxable Income Goes Above ₹12 Lakh?
This is where the calculation becomes more important.
Once taxable income exceeds ₹12 lakh, the ₹60,000 Section 87A rebate is not available under the new-regime condition described above. However, marginal relief can affect the tax payable around the threshold.
For example, consider taxable income slightly above ₹12 lakh. The tax calculated under the slabs may initially be higher than the amount by which income exceeds ₹12 lakh. Marginal relief can reduce the liability in the applicable range.
The relief near ₹12 lakh is different from surcharge marginal relief at higher incomes. This calculator handles the former and stops above ₹50 lakh taxable income (₹50.75 lakh gross eligible salary). It remains an estimate and does not replace the official tax computation.
Standard Deduction Under the New Tax Regime
For eligible salary or eligible employer pension income, the standard deduction is ₹75,000.
This is why a person with ₹12.75 lakh of eligible gross salary can arrive at ₹12 lakh taxable income before considering other applicable items.
The standard deduction should not be blindly applied to every type of income. This calculator therefore asks for salary/eligible employer pension income rather than generic “all income.”
New Tax Regime vs Old Tax Regime
The tax regime that produces the lower liability depends on the taxpayer’s income, deductions, exemptions and other applicable factors.
The new regime generally has different slab rates and fewer deductions/exemptions than the old regime. The old regime may become relevant for taxpayers who have substantial eligible deductions or exemptions.
Instead of assuming that one regime is always better, compare your actual figures under both regimes before making a tax decision.
If you are also considering tax-efficient retirement contributions, you can explore our NPS Calculator to understand how different contribution assumptions affect a retirement projection.
Who Should Use This Calculator?
This calculator is most useful for someone who wants a quick estimate of tax on:
- salary income
- eligible employer pension income (not family pension)
- ordinary slab-rate salary/employer pension income only, with no additional income or deductions
- FY 2025-26 / AY 2026-27
- the new tax regime
It is particularly useful for checking how the ₹75,000 standard deduction and Section 87A rebate affect a basic tax estimate.
Who Should Not Rely on This Simplified Calculator?
You should use the official Income Tax Department calculation or professional advice if your tax situation includes:
- substantial capital gains
- business or professional income
- income above the surcharge thresholds
- multiple special-rate income sources
- complex deductions or exemptions
- foreign income or assets
- tax credits or other complicated adjustments
The Income Tax Department’s AY 2026-27 guidance also lists surcharge provisions at higher income levels, so a simple slab calculator should not be represented as a complete tax-return calculator.
Frequently Asked Questions
1. What exactly does an income tax calculator do?
An income tax calculator is an automated tool that estimates your total tax liability based on your income, age, and eligible deductions. It applies the correct slab rates, surcharges, and cess to help you compare your final tax payout between the old and new tax regimes.
2. Which tax regime is better: Old or New?The new tax regime is the default and generally benefits those with a simple income structure and minimal tax-saving investments. The old regime is often better if you claim significant deductions like HRA, LTA, Section 80C (PPF, ELSS), and home loan interest.
3. What is the difference between Financial Year (FY) and Assessment Year (AY)? The Financial Year (FY) is the 12-month period you earn your income, while the Assessment Year (AY) is the following year when you evaluate and file taxes for that income. Calculators require you to select the correct FY or AY to ensure the right slab rates are applied.
4. Is income up to ₹12 lakh tax-free under the new tax regime?Yes, for FY 2025-26, if your taxable income is ₹12 lakh or less, you owe zero tax under the new regime. A rebate under Section 87A (up to ₹60,000) cancels out the slab-based tax liability for income up to this threshold.
5. Does the income tax calculator account for TDS (Tax Deducted at Source)?Most calculators compute your total gross tax liability based on your input income. To determine your final out-of-pocket tax payable or potential refund, you must manually subtract the TDS already deducted by your employer or bank from the calculator’s final figure.
6. What deductions are allowed under the new tax regime?The new regime eliminates most traditional deductions (such as Section 80C, 80D, HRA, and LTA). However, salaried individuals and pensioners can still claim a standard deduction of ₹75,000 (for FY 2025-26) and the employer’s contribution to NPS under Section 80CCD(2).
7. Can I use a tax calculator if I have multiple sources of income? Yes. Comprehensive calculators allow you to input income from various sources, including salary, freelance or business income, house property (rental income), capital gains, and interest, providing a holistic view of your tax liability.
Explore More Tax & Financial Calculators
If you are planning your finances along with your tax calculation, these EasyInvestCalc tools may also be useful:
- NPS Calculator — estimate retirement corpus and pension projections.
- PPF Calculator — estimate PPF contributions, interest and maturity value.
- SIP Calculator Guide — understand how SIP calculations and compounding projections work.
- EasyInvestCalc Home — explore the complete collection of investment, loan and tax calculators.
Using related calculators can help you look at tax planning, retirement savings and long-term investment projections together rather than viewing each calculation in isolation.
Important Note
Tax laws and filing procedures can change. This calculator is designed as an educational estimation tool for FY 2025-26 / AY 2026-27 and should not be treated as a tax-return filing service or professional tax advice.
For official information, always verify the applicable rules with the Income Tax Department.
Official source: Income Tax Department
Scope, Eligibility and Income Limits
This tool covers resident individuals with only eligible salary or employer pension, no special-rate income and no additional deductions. It is not an all-income tax calculator. Enter gross salary before the standard deduction, not CTC, net take-home pay, or an amount that already has the deduction removed. Employer contributions, exempt amounts and other adjustments can make CTC different from taxable salary.
Family pension is excluded. It is generally income from other sources, with a new-regime deduction of one-third of family pension or ₹25,000, whichever is lower; it does not receive this widget’s ₹75,000 salary deduction. Pension lump sums and exemptions also require separate treatment.
The standard deduction actually applied is the lower of eligible income and ₹75,000. For example, ₹50,000 eligible income receives a ₹50,000 deduction, leaving zero taxable income.
Supported gross income: ₹0–₹50,75,000. This corresponds to taxable income up to ₹50 lakh. Above that range surcharge and surcharge marginal relief may be relevant, so the widget displays a message instead of an incomplete total. Non-residents, family-pension recipients and taxpayers with other income should use an appropriate official calculation.
Total taxable income is rounded to the nearest ₹10 for this estimate, and final tax including cess is rounded to the nearest ₹10. The result is annual liability before TDS, advance tax, tax credits, interest and fees, not a refund or outstanding balance.
Worked Salary Examples for FY 2025-26
These examples assume a qualifying resident individual, only eligible salary, ₹75,000 standard deduction and no other adjustments. Final tax includes 4% cess.
| Gross salary | Taxable income | Estimated annual tax |
|---|---|---|
| ₹12,00,000 | ₹11,25,000 | ₹0 |
| ₹12,75,000 | ₹12,00,000 | ₹0 |
| ₹13,00,000 | ₹12,25,000 | ₹26,000 |
| ₹15,00,000 | ₹14,25,000 | ₹97,500 |
| ₹20,00,000 | ₹19,25,000 | ₹1,92,400 |
Why is the tax ₹26,000 on ₹13 lakh salary?
Subtract ₹75,000 to get ₹12,25,000 taxable income. Slab tax is ₹63,750. Income exceeds ₹12 lakh by ₹25,000, so marginal relief reduces the pre-cess tax by ₹38,750 to ₹25,000. Cess is ₹1,000, giving ₹26,000 total tax.
Is ₹12 lakh salary the same as ₹12 lakh taxable income?
No. ₹12 lakh eligible salary becomes ₹11.25 lakh taxable income after the standard deduction. ₹12 lakh taxable income is the amount after applicable deductions. This widget asks for gross eligible salary, not taxable income.
Can this calculator be used for FY 2024-25?
No. This page is specifically for FY 2025-26 (1 April 2025–31 March 2026), corresponding to AY 2026-27. Do not use its calculations for another financial year without verifying that year’s rules.
Does it compare old and new regimes?
No. The comparison discussion explains the distinction, but the widget calculates only the new regime. A personal comparison must include your actual eligible deductions and exemptions under each regime.
Official References and Verification
- Income Tax Department: salaried individuals, AY 2026-27 — slab rates, rebate, surcharge and cess.
- Official ITR-1 validation rules for AY 2026-27 (PDF) — salary deduction and family-pension treatment.
Rules and examples checked against the linked official guidance on 15 October 2026. EasyInvestCalc is an independent educational website and is not affiliated with the Income Tax Department. This statement is not a claim of professional tax certification.
Disclaimer
The calculations provided on EasyInvestCalc.com are for informational and educational purposes. Actual tax liability may differ depending on the taxpayer’s income sources, eligibility, deductions, exemptions, special-rate income, surcharge, tax credits, TDS and other applicable provisions.
Always verify the final amount using the official Income Tax Department services or obtain professional advice where required.