Income Tax Calculator
Calculate Indian income tax for AY 2026-27 (FY 2025-26), compare Old vs New Tax Regime, view tax slabs, standard deductions, 87A rebate, and estimated savings.
Evaluates tax liabilities across New and Old tax regimes locally in your browser. Personal salary details and investment figures remain private.
The FileTools Indian Income Tax Calculator estimates your tax liability for Assessment Year 2026-27 (Financial Year 2025-26) and provides a clear comparison between the Old Tax Regime and the New Tax Regime (Section 115BAC). Under modern Indian tax law, the New Tax Regime offers revised concessional tax slabs and an increased standard deduction (₹75,000 for salaried taxpayers), while the Old Regime allows specific deductions under Section 80C, 80D, and home loan interest. This tool models both systems, evaluates Section 87A rebates, and helps you identify which regime offers higher net savings.
Key Challenges Solved
- ✓ Navigating complex tax slabs, exemptions, standard deductions, and rebates under old vs new tax regimes.
- ✓ Calculating take-home pay and tax liability estimates before year-end investment declarations.
- ✓ Understanding how salary deductions (HRA, 80C, 80D, NPS) impact total annual tax liability.
Who Is Income Tax Calculator Built For?
Salaried employees planning annual tax-saving investments and choosing between old and new tax regimes
Independent freelancers and consultants estimating quarterly advance tax payments on gross receipts
HR payroll managers explaining salary tax deductions and net take-home calculations to new hires
Finance Act 2025 Slabs: Section 115BAC Modeling vs Old Regime Deductions
Comprehensive mathematical modeling of ₹75,000 standard deduction and Section 87A rebate dynamics
What We Verified
- ✓ Finance Act 2025 slab calibration: Implements revised New Tax Regime brackets for AY 2026-27: ₹0–₹4L (0%), ₹4L–₹8L (5%), ₹8L–₹12L (10%), ₹12L–₹16L (15%), ₹16L–₹20L (20%), ₹20L–₹24L (25%), and >₹24L (30%).
- ✓ Section 87A rebate & marginal relief: Models full rebate up to ₹60,000 for net taxable income up to ₹12,00,000 under the New Regime, yielding zero tax on gross salaries up to ₹12,75,000 for salaried employees.
- ✓ Old vs New side-by-side break-even analysis: Dynamically evaluates the exact deduction tipping point (Section 80C, 80D, HRA, home loan interest) needed for the Old Regime to surpass New Regime savings.
- ✓ Zero-server financial privacy: Salary slips, tax declarations, and investment numbers remain strictly confidential inside client RAM.
Why This Happens (Technical Architecture)
Tax liability estimation requires accounting for non-linear bracket thresholds, statutory deductions under Section 16(ia), and health & education cess of 4%. Under the New Regime (Section 115BAC) for AY 2026-27, salaried taxpayers receive an increased standard deduction of ₹75,000 and an expanded Section 87A rebate. FileTools computes bracket-by-bracket liability across both regimes in real time, applies 87A rebate thresholds and statutory surcharge tiers, and delivers clear comparative metrics without transmitting financial data over the network.
Key Features & Benefits
Side-by-Side Regime Comparison
Simultaneously evaluates your tax liability under both the Old and New Tax Regimes to highlight potential tax savings.
Current AY 2026-27 (FY 2025-26) Slabs
Incorporates updated New Regime slabs under Section 115BAC, including standard deduction and Section 87A rebate thresholds.
Comprehensive Deductions Modeling
Enter standard deductions, Section 80C, 80D health insurance, HRA, and home loan interest to model Old Regime liability.
Strict Confidentiality
Your salary numbers, savings, and financial profiles remain 100% private on your device without server submission.
How to Use Income Tax Calculator
- Enter your gross annual income from salary and any other sources (interest, rental, etc.).
- Specify eligible deductions under Old Regime (Section 80C, 80D, HRA, home loan interest).
- Select your age category (Below 60, Senior Citizen 60-80, or Super Senior 80+).
- Compare total tax liability, effective tax rates, and recommended regime savings side-by-side.
Common Use Cases
Annual Tax Planning & Declaration
Determine whether to choose the New or Old Tax Regime when submitting tax declarations to your employer HR portal.
Evaluating Investment Deductions
Check whether maximizing ₹1.5 lakh under Section 80C and health insurance under 80D produces genuine savings compared to the New Regime.
Budgeting & Take-Home Salary Estimation
Estimate approximate monthly TDS deductions to understand your true net take-home salary across the financial year.
Continue Your Workflow
Recommended logical next steps after using Income Tax Calculator:
GST Calculator
Calculate GST amount, pre-tax net price, gross price, and CGST/SGST/IGST tax breakdowns.
Use GST Calculator →EMI Calculator
Calculate monthly loan installments, total interest, and full amortization schedule.
Use EMI Calculator →Percentage Calculator
Calculate percentages, percentage change, percentage difference, and fraction to percent conversions.
Use Percentage Calculator →You May Need This Before
Common preparation and prerequisite steps before Income Tax Calculator:
Percentage Calculator
Calculate percentages, percentage change, percentage difference, and fraction to percent conversions.
← Prerequisite: Percentage CalculatorGST Calculator
Calculate GST amount, pre-tax net price, gross price, and CGST/SGST/IGST tax breakdowns.
← Prerequisite: GST CalculatorEMI Calculator
Calculate monthly loan installments, total interest, and full amortization schedule.
← Prerequisite: EMI CalculatorRecommended Workflows Featuring Income Tax Calculator
Connected step-by-step processing routines for complete document tasks:
Personal Tax & Take-Home Salary Planning
Compare Old vs. New tax regime liabilities, calculate GST invoices, and determine exact percentage deductions from gross income.
Tax Calculation Principles (AY 2026-27 / FY 2025-26)
New Regime slabs under Section 115BAC for AY 2026-27 (effective 1 April 2026 via Finance Act 2025): ₹0–₹4L (0%), ₹4L–₹8L (5%), ₹8L–₹12L (10%), ₹12L–₹16L (15%), ₹16L–₹20L (20%), ₹20L–₹24L (25%), Above ₹24L (30%). Salaried individuals receive a standard deduction of ₹75,000 under Section 16(ia) via Finance (No. 2) Act, 2024. Full tax rebate under Section 87A of up to ₹60,000 applies to net taxable income up to ₹12,00,000 under the New Regime via Finance Act 2025 (verified against official Income Tax Department guidance at incometax.gov.in), alongside Health & Education Cess of 4%.
Salaried Professional with ₹12,75,000 Gross Income
A salaried individual earns ₹12,75,000 annually and compares tax under New Regime with standard deduction and 87A rebate for AY 2026-27.
With a ₹75,000 standard deduction reducing taxable income to exactly ₹12,00,000, Section 87A rebate completely eliminates calculated slab tax under the New Regime.
Important Operational Notes & Realistic Limitations
- IMPORTANT DISCLAIMER: This calculator provides mathematical estimates for educational and planning purposes based on general provisions of Indian tax law for AY 2026-27 (FY 2025-26).
- It does not constitute formal tax, legal, or accounting advice. Actual liabilities may vary based on complex surcharges, capital gains, marginal relief rules, and official assessments.
- Always consult a qualified Chartered Accountant (CA) or tax professional before filing official returns.
Old vs New Tax Regime: AY 2026-27 Slabs & Deductions
Compare Old vs New Tax Regime for AY 2026-27 (FY 2025-26). Check Section 115BAC slabs, ₹75,000 standard deduction, 87A rebate, and breakeven deductions.
Frequently Asked Questions
How do I calculate income tax under old vs new tax regime?
Enter your gross salary and deductions to run income tax calculation side by side. Compare old vs new tax regime liabilities and let the tax slab calculator India apply current tax brackets and cess automatically.
Which regime is better: New or Old Tax Regime?
For most salaried taxpayers with total deductions under ₹3.75 lakh, the New Tax Regime typically results in lower tax due to wider slabs and lower rates. If you have substantial HRA, home loan interest, and 80C/80D deductions, the Old Regime may remain beneficial.
What is the standard deduction for salaried individuals in AY 2026-27?
Under the New Tax Regime, the standard deduction for salaried employees is ₹75,000. Under the Old Tax Regime, the standard deduction is ₹50,000.
How does the Section 87A rebate work under the New Regime?
Under the New Tax Regime for AY 2026-27, resident individuals with taxable income up to ₹12,00,000 (after standard deduction) are eligible for a full tax rebate under Section 87A (up to ₹60,000), resulting in zero net tax liability. If taxable income marginally exceeds ₹12 Lakh, statutory marginal relief caps your total tax payable to the excess income above ₹12,00,000.
Is Health and Education Cess included in the final tax total?
Yes. A mandatory 4% Health and Education Cess is calculated on the total income tax amount and included in the total liability.
Does this calculator compare Old vs New Tax Regimes?
Yes. It provides side-by-side comparative tax liability calculations under both regimes for the current assessment year.
Are standard deductions and tax rebates included in the calculation?
Yes. Standard deductions and Section 87A rebate thresholds are automatically factored into taxable income.