What is Income Tax Calculator?
A Income Tax Calculator computes your tax liability under current slab rates. It applies the standard formula to the values you enter and returns the result instantly, without sending any data to a server. Taxpayers use it to estimate their liability before filing.
Income Tax Calculator
Quick income tax estimate for FY 2025-26 under both regimes.
Inputs
Total Tax Payable
NEW REGIME₹0
In-hand: ₹0/yr
Both regimes side-by-side
| Old Regime | New Regime |
|---|
💰 Tax Saving Options - FY 2025-26 (India)
Indian residents can legally reduce taxable income through these deductions and exemptions. Old regime users can claim most of these; the new regime (default from FY 2023-24) only allows a few. Maximums shown are for FY 2025-26.
| Section | What it covers | Max deduction | Old / New |
|---|---|---|---|
| 80C | PPF, ELSS, EPF, NSC, LIC, NPS Tier-1, ULIP, Sukanya Samriddhi, Tuition fees, Home loan principal, 5-yr FD | ₹1,50,000 | Old only |
| 80CCD(1B) | Additional NPS contribution (over 80C) | ₹50,000 | Old only |
| 80D | Health insurance: ₹25K self/family + ₹50K senior parents + ₹5K preventive | ₹1,00,000 | Old only |
| 24(b) | Home loan interest (self-occupied) | ₹2,00,000 | Old only |
| HRA | Min of 3: actual HRA, 50%/40% basic, rent-10% basic | Variable | Old only |
| 80E | Education loan interest (8 years) | No limit | Old only |
| Std Deduction | Salaried + pensioners (auto) | ₹50K (old) / ₹75K (new) | Both |
| 87A Rebate | Net tax rebate if income ≤ ₹12L (new) / ₹5L (old) | Up to ₹60K (new) | Both |
| 80G | Donations to approved charities (50% / 100%) | Variable | Old only |
| 80TTA / 80TTB | Savings interest (₹50K for seniors) | ₹10K / ₹50K | Old only |
Maximum legal saving under old regime (salaried): Standard deduction ₹50K + 80C ₹1.5L + 80CCD(1B) ₹50K + 80D ₹1L + 24(b) ₹2L + HRA (variable) = ~₹5.5L+ deductions excluding HRA. Combined with 87A rebate, taxable income up to ₹12-13L can result in zero tax under old regime with full optimisation.
About this tool
The Income Tax Calculator estimates your annual tax liability for FY 2025-26 (AY 2026-27) using current tax slabs, standard deduction, and 87A rebate rules under both the Old and New tax regimes.
For FY 2025-26, the New Regime has revised slabs starting at 5% above ₹4 Lakh, full 87A rebate up to ₹12 Lakh taxable income, and ₹75,000 standard deduction. The Old Regime retains the original 5%/20%/30% slabs with all deductions.
How it works
- Enter your annual gross salary and any other income (interest, rent).
- If you'll opt for the Old Regime, fill in your deductions: 80C (PPF/ELSS/LIC), 80D (health insurance), HRA exemption, home loan interest.
- The calculator shows tax under both regimes side-by-side and highlights the better one.
Formula
Final Tax = (Tax + Surcharge) × 1.04 (Health & Education Cess)
How income tax brackets work
Almost every modern country uses a progressive tax system: you pay a low rate on the first slice of income, a higher rate on the next slice, and so on. Critically, moving into a higher bracket does NOT raise the tax on income below the bracket boundary - only the income above it.
Example with simplified brackets: 10% up to $10K, 20% from $10K to $50K, 30% above $50K. On $60K income:
- First $10K: $1,000 tax (10%)
- Next $40K: $8,000 tax (20%)
- Last $10K: $3,000 tax (30%)
- Total: $12,000 tax = 20% effective rate, not 30%.
Marginal vs effective rate
Two numbers you'll see on every tax calculator:
| Rate type | Definition | Use it for |
|---|---|---|
| Marginal | Rate on your NEXT dollar of income | Deciding whether to take overtime, a bonus, or a second job. Estimating value of a deduction. |
| Effective / Average | Total tax / total income | Comparing tax burden across countries or states. Budgeting. |
Effective rate is always lower than marginal rate (unless you're in the lowest bracket). The gap widens as income rises.
2026 federal income tax brackets compared
| Country | Lowest rate | Top rate | Bracket count | Top rate starts at |
|---|---|---|---|---|
| US (federal) | 10% | 37% | 7 | $626,350 single / $751,600 MFJ |
| UK (Eng/Wales/NI) | 20% | 45% | 3 + PA | £125,140 |
| UK (Scotland) | 19% | 48% | 6 + PA | £125,140 |
| Canada (federal) | 15% | 33% | 5 | CAD 246,752 |
| Australia | 16% | 45% | 5 | AUD 190,000 |
| India (new regime) | 0% | 30% | 7 | Rs 24 lakh |
| India (old regime) | 0% | 30% | 4 | Rs 10 lakh |
| Germany | 0% | 45% | Continuous formula + Reichensteuer | EUR 277,825 |
| Singapore | 0% | 24% | 12 | SGD 1,000,000 |
| UAE | 0% | 0% | n/a | n/a (no personal income tax) |
Most-missed tax-saving levers
- Retirement contributions - 401(k), RRSP, EPF, NPS, super all reduce taxable income today. Employer matching is typically a 50-100% instant return.
- Health spending - HSA (US), salary sacrifice (UK), group health (India 80D) - pre-tax medical spend.
- Home loan interest - deductible in US (with SALT cap), UK BTL, India 80EEA, Canada (rental only), Germany.
- Education - 529 (US), Junior ISA (UK), 80C (India), RESP (Canada).
- Charitable giving - 60% AGI cap (US), gift aid (UK), 80G (India), donation tax credit (Canada).
- Capital losses - offset capital gains in same year + carry forward.
- Tax-loss harvesting - realize paper losses to offset realized gains. Watch the wash-sale rule (30 days US, 30 days UK).
Frequently asked questions
What is the income tax slab for FY 2025-26?
New Regime: Nil up to ₹4L, 5% (4-8L), 10% (8-12L), 15% (12-16L), 20% (16-20L), 25% (20-24L), 30% above ₹24L. Old Regime: Nil up to ₹2.5L, 5% (2.5-5L), 20% (5-10L), 30% above ₹10L.
Up to what income is there no tax in 2025?
Under the New Regime, ₹12.75 Lakh gross salary attracts zero tax (₹12L taxable + ₹75k standard deduction, then full 87A rebate). Under Old Regime, ₹5L taxable income gets ₹12,500 rebate (₹5.5L gross with std deduction).
Which deductions are allowed in New Regime?
Only Standard Deduction (₹75,000), 80CCD(2) employer NPS contribution, and certain transport allowances. Not allowed: 80C, 80D, HRA exemption, home loan interest, 80CCD(1B).
What is the 87A rebate marginal relief?
If your taxable income just exceeds ₹12L (New Regime), tax payable cannot exceed (income - ₹12L). E.g., at ₹12.1L taxable, slab tax is ₹61,500 but marginal relief caps it at ₹10,000.
Will moving to a higher bracket cost me money?
Almost never. Only the income above the bracket boundary is taxed at the higher rate. Income below it stays at the lower rate. The exceptions are 'cliff' benefits - some welfare programs end at hard income thresholds rather than phase out smoothly.
Is it better to invest in retirement or pay down debt?
Compare expected after-tax investment return to interest rate on the debt. Tax-advantaged retirement with employer match almost always wins. High-interest credit-card debt (>15%) wins over almost any investment.
How accurate is this calculator for my situation?
It applies the official brackets, standard deduction, and FICA/NI/CPP/EI rates for the year you select. It does NOT model itemized deductions, dependents, education credits, or self-employment - which can shift your final liability ±5-15%. Use the result as a starting estimate.
What's the difference between tax credits and deductions?
Deductions reduce your taxable income before tax is calculated. Credits reduce your tax bill dollar-for-dollar. A $1,000 deduction at the 22% bracket saves $220 in tax. A $1,000 credit saves $1,000. Credits are more valuable per dollar.
When should I update my withholding?
After major life events: marriage, divorce, baby, new job, large bonus, home purchase. Otherwise once a year, after filing, to align with the previous year's actual liability. The IRS Tax Withholding Estimator and HMRC PAYE adjustments handle this.
How accurate is the Income Tax Calculator?
It applies the standard formula. Accuracy is limited only by your input precision. For decisions with material consequences (taxes, medical, legal, structural), use the result as a starting point and verify with a qualified professional in the relevant field.
Is the Income Tax Calculator free to use?
Yes. 100% free, no signup, no payment, no API key. The site is funded by display ads around the tool but not inside the calculation flow.
Are my inputs saved anywhere?
No. All inputs stay in your browser tab. Closing the tab discards them. The site uses Google Analytics for traffic measurement (anonymized) but the analytics never see what you type into the form.
Can I use the Income Tax Calculator on my phone?
Yes. The tool is responsive and tested on iOS Safari, Android Chrome, and major desktop browsers. Touch targets meet Apple's 44pt and Google's 48dp minimum.
Does the Income Tax Calculator work offline?
Yes. Once the page has loaded, it works without internet. The calculation runs in JavaScript on your device.
How do I report a bug or suggest improvement to the Income Tax Calculator?
Email hi@3tej.com with the URL of this page and a description of what you saw vs expected. We typically respond within 72 hours.
Can I share results from the Income Tax Calculator?
Take a screenshot or copy the output. The page doesn't generate shareable URLs for specific calculations - inputs stay in your browser only.
Why are the results different from another income tax tool?
Most likely: different formula assumptions, different default values, different rounding rules, or different applicable rates. Check the methodology if both tools document it. Both can be valid for different scenarios.