Tax
Income Tax
Calculate income tax liability
About the Income Tax calculator
Free Income Tax Calculator for FY 2024-25. Calculate tax liability under old & new regimes, compare savings & optimize tax planning with latest slabs.
How the maths works
Tax Calculation Formula
Tax = (Taxable Income × Tax Rate) - Tax Rebates- Taxable Income
- Total Income - Deductions - Exemptions
- Tax Rate
- Applicable tax slab rate
- Tax Rebates
- Section 87A and other rebates
A worked example
Tax Calculation Example
| Annual Income | ₹12,00,000 |
| Deductions | ₹1,50,000 |
| Regime | Old Tax Regime |
Tax Liability: ₹1,17,000
How to use it
- Enter your annual income details
- Add applicable deductions and exemptions
- Choose between old and new tax regime
- Get detailed tax calculation and comparison
What it accounts for
- Compare old vs new tax regime
- Calculate exact tax liability
- Optimize tax-saving investments
- Plan salary structure
- Understand take-home salary
Why it is worth working out
- Accurate tax planning
- Regime comparison for optimal choice
- Identify tax-saving opportunities
- Better financial planning
Questions people ask
What is the difference between the old and new tax regimes?
The new regime has lower rates and almost no deductions. The old regime has higher rates and a long list of deductions. Whichever produces less tax wins, and for most taxpayers without a home loan and large 80C investments, that is now the new regime.
What are the current income tax slabs?
Under the new regime: nil up to ₹4 lakh, 5% to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh, 20% to ₹20 lakh, 25% to ₹24 lakh, and 30% above that. A section 87A rebate means no tax at all on total income up to ₹12 lakh. A 4% health and education cess applies on top. Budget 2026 left the slabs unchanged, so this table applies both to FY 2025-26 (AY 2026-27), the year being filed for now, and to FY 2026-27 (AY 2027-28).
How do I know which regime is better for me?
Work out the total deductions you can genuinely claim — not the ones you could claim if you rearranged your finances. Compare that against the break-even deduction for your income level. Above the break-even, the old regime wins; below it, the new one does.
Is the standard deduction available in both regimes?
Yes, for salaried taxpayers and pensioners: ₹75,000 under the new regime and ₹50,000 under the old. It is applied automatically and needs no proof.
Can I switch regimes each year?
A salaried taxpayer with no business income can choose afresh every year at the time of filing, regardless of what was declared to the employer. Taxpayers with business or professional income can opt out of the new regime only once, and switching back is then permanent.
Read more on this
- You freelanced on weekends and owe the tax department ₹47,000 — Side income from freelancing, content creation, or reselling is taxable from rupee one. Most people discover this at notice time. Here is how to handle it before that.
- Section 80C, and the March panic that costs people a decade — The ₹1.5 lakh deduction is worth at most ₹46,800 in tax. The instrument you use to claim it decides whether you also earn 4% or 12% for the next fifteen years.
- You are not "in" a tax bracket — and the difference is worth knowing — The most common tax misunderstanding is that a raise can push you into a bracket and leave you worse off. Slabs are marginal, and here is what that means.
- Old regime or new — the break-even deduction test — There is one number that decides it. Work out the total deductions you can genuinely claim, and compare it to the break-even for your income.
This calculator is for information and education. It is not financial advice — see the disclaimer.