Income Tax calculator
Here you can get the details about the new regime income tax slab rates for FY 2025-26 (Assessment Year 2026-27) under the Finance Act, 2025 in India, and how you can use an online calculator to estimate your tax liability.
An income tax calculator is a tool that estimates how much tax you need to pay in a financial year based on your income and deductions.
- Taxable income
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- Total deductions
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- Effective tax rate
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- Income after tax
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Slabs and rules applied
New regime slabs: nil up to ₹4,00,000, then 5% to ₹8,00,000, 10% to ₹12,00,000, 15% to ₹16,00,000, 20% to ₹20,00,000, 25% to ₹24,00,000, and 30% above that. Standard deduction is ₹75,000 for salary and pension. Health and education cess is 4% of tax plus surcharge.
Section 87A gives a rebate of up to ₹60,000 where taxable income does not exceed ₹12,00,000, which is why a salaried person earning up to ₹12,75,000 pays nothing. Surcharge is 10% above ₹50 lakh, 15% above ₹1 crore and 25% above ₹2 crore — the new regime caps it at 25%, so the old 37% rate does not apply.
Marginal relief, and why most calculators get it wrong
Crossing a threshold by a rupee would otherwise cost you tens of thousands. Two separate provisions prevent that, and this calculator applies both.
Above ₹12,00,000 the rebate disappears, so relief caps your tax at the amount by which income exceeds ₹12,00,000. At taxable income of ₹12,25,000 the slab tax is ₹63,750, but you pay ₹25,000 plus cess. Relief runs out around ₹12,70,588, after which normal tax is lower anyway.
The same logic applies at the surcharge thresholds: tax plus surcharge cannot exceed the tax at the threshold plus the whole of the excess income. Just above ₹50 lakh this is worth tens of thousands, and it is the single most commonly missed step in online calculators.
What this does not cover
This assumes ordinary income taxed at slab rates for a resident individual under 60. It excludes capital gains, lottery and gaming income, which are taxed at special rates and do not qualify for the 87A rebate, and it does not model old regime deductions, house property loss, or relief under Section 89.
Employer NPS under 80CCD(2) is the main deduction still available in the new regime and is included. Figures are indicative — confirm with a qualified advisor before acting on them.