Income tax · FY 2025-26 (AY 2026-27)
Income tax calculator
Both regimes, side by side, slab by slab — including the Section 87A marginal relief and surcharge relief that most online calculators quietly skip.
Rates reviewed 10 November 2026 · Estimates only, not tax advice. Verify against the current Finance Act before you rely on a figure.
80C, 80D, HRA, home-loan interest and the rest, added together. The new regime allows almost none of them, which is the whole trade-off.
The new regime is cheaper here by ₹1,59,900.
New regime
Lower tax₹97,500
6.5% of gross · taxable ₹14,25,000
| Band | Rate | Tax |
|---|---|---|
| ₹0 – ₹4,00,000 | 0% | ₹0 |
| ₹4,00,000 – ₹8,00,000 | 5% | ₹20,000 |
| ₹8,00,000 – ₹12,00,000 | 10% | ₹40,000 |
| ₹12,00,000 – ₹16,00,000 | 15% | ₹33,750 |
Health & education cess (4%)₹3,750
Old regime
₹2,57,400
17.2% of gross · taxable ₹14,50,000
| Band | Rate | Tax |
|---|---|---|
| ₹0 – ₹2,50,000 | 0% | ₹0 |
| ₹2,50,000 – ₹5,00,000 | 5% | ₹12,500 |
| ₹5,00,000 – ₹10,00,000 | 20% | ₹1,00,000 |
| ₹10,00,000 – above | 30% | ₹1,35,000 |
Health & education cess (4%)₹9,900
FY 2025-26 (AY 2026-27). Covers slab tax, the Section 87A rebate with marginal relief, surcharge with marginal relief, and cess. It does not model capital gains, business income or foreign assets. Estimates only, not tax advice.
Getting to the taxable figure
Gross income is not what you are taxed on
| Step | New regime | Old regime |
|---|---|---|
| Standard deduction | ₹75,000 | ₹50,000 |
| HRA exemption u/s 10(13A) | Not available | Least of three limbs |
| Section 80C (PF, ELSS, insurance) | Not available | Up to ₹1,50,000 |
| Section 80D (health insurance) | Not available | Up to ₹1,00,000 |
| Section 80CCD(1B) (NPS) | Not available | Up to ₹50,000 |
| Employer NPS u/s 80CCD(2) | Up to 14% of basic | Up to 10% of basic |
| Professional tax u/s 16(iii) | Not available | Deductible |
| Home-loan interest (self-occupied) | Not available | Up to ₹2,00,000 |
| Section 87A rebate ceiling | ₹12,00,000 | ₹5,00,000 |
That table is the whole trade-off. The new regime gives you wider slabs and a bigger standard deduction but takes nearly every exemption away; the old regime does the opposite.
Questions people actually search
Answered
How do I calculate my taxable income?
Add income from all five heads — salary, house property, business or profession, capital gains and other sources — to get gross total income. Subtract the standard deduction if you are salaried or a pensioner (₹75,000 new regime, ₹50,000 old). In the old regime, also subtract exemptions such as HRA and Chapter VI-A deductions like 80C, 80D and 80CCD(1B). What remains is taxable income, and the slab rates apply to that figure, not to your gross.
Is income up to ₹12 lakh really tax-free in the new regime?
Yes, for FY 2025-26, because of the Section 87A rebate. Tax on ₹12,00,000 of taxable income comes to ₹60,000 at slab rates, and the rebate wipes out exactly that amount. For a salaried person the ₹75,000 standard deduction sits on top, so gross salary up to ₹12,75,000 can carry no tax. Above ₹12,00,000 of taxable income the rebate falls away entirely — which is where marginal relief matters.
What is marginal relief on the Section 87A rebate?
Without it, earning ₹10,000 above ₹12,00,000 would cost you ₹61,500 in tax, because crossing the line removes the whole ₹60,000 rebate. Marginal relief caps the tax at the amount of income exceeding ₹12,00,000 — so on taxable income of ₹12,10,000 the tax is limited to ₹10,000 plus cess, not ₹61,500. This calculator applies it; many do not.
What are the income tax slabs for FY 2025-26?
New regime: nil up to ₹4,00,000; 5% from ₹4,00,001 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. Old regime: nil up to ₹2,50,000; 5% to ₹5,00,000; 20% to ₹10,00,000; and 30% above — with the exempt slab widening to ₹3,00,000 for those aged 60 to 80 and ₹5,00,000 above 80.
When does surcharge apply, and what is marginal relief on it?
Surcharge applies above ₹50,00,000 of total income: 10% to ₹1 crore, 15% to ₹2 crore, 25% to ₹5 crore, and 37% above that in the old regime — the new regime caps surcharge at 25%. Marginal relief ensures the extra tax from crossing a threshold never exceeds the extra income. Just above ₹50,00,000 that matters a great deal, since a raw 10% surcharge would otherwise cost more than the raise.
Which regime should I choose?
Compute both — the answer depends entirely on your deductions. The new regime is the default and usually wins for people with few deductions, because of the wider slabs, the ₹75,000 standard deduction and the larger rebate. The old regime wins when you genuinely claim HRA on substantial rent, the full ₹1.5 lakh of 80C, 80D premiums and home-loan interest. Salaried taxpayers may switch each year; those with business income generally may not.
Does this calculator cover capital gains?
No. Capital gains are taxed at special rates under Sections 111A, 112 and 112A rather than at slab rates, and they are not modelled here. This calculator covers slab income — salary, pension, interest, rent and other ordinary income. For capital gains, consult a chartered accountant.
What is the 4% cess on income tax?
Health and Education Cess, charged at 4% on the sum of income tax and surcharge. It applies in both regimes and to every taxpayer with a tax liability — there is no exemption or threshold. If your tax after rebate is zero, the cess is zero too, since it is computed on the tax rather than on income.
Run a business, not just a salary?
Dyopact connects proposals, contracts, GST invoices and payments on one record — so the numbers you file are the numbers you billed.