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Work out your income tax under both the new and old regimes for FY 2025-26, see which one costs you less, and get the slab-by-slab breakdown including rebate, surcharge, marginal relief and cess.
Slabs, rebate, surcharge and cess in this tool follow FY 2025-26 (AY 2026-27). A later Budget can change them.
Step 1
Enter your income
Your gross salary before any deduction, plus any interest, rent or other income taxed at slab rates.
Step 2
Add your old-regime deductions
80C, 80D, NPS, home loan interest and HRA exemption. These only count under the old regime, so leave them at zero if you have none.
Step 3
Compare the two regimes
The calculator runs both regimes on the same inputs and shows which one leaves you with more, and by how much.
New regime is cheaper
₹97,500
Choosing the new regime saves you ₹1,05,300 a year against the old regime.
Under the old regime you would pay ₹2,02,800, an effective rate of 13.5% against 6.5%.
Tax is built up in five steps. Each one depends on the result of the last, which is why a small change in income near a threshold can move the final figure by a surprising amount.
Tax = ((Slab tax − 87A rebate) + Surcharge) × 1.04Gross total income minus deductions
Salary and other income, less the standard deduction and — in the old regime only — Chapter VI-A deductions and the HRA exemption.
Rate applied band by band
Each slab rate applies only to the income falling inside that band, not to your whole income. This is why your average rate is always below your top slab rate.
Section 87A
Up to ₹60,000 when taxable income is ₹12 lakh or less in the new regime, or ₹12,500 up to ₹5 lakh in the old regime.
Levy on higher incomes
10% above ₹50 lakh, 15% above ₹1 crore and 25% above ₹2 crore. The old regime adds a 37% band above ₹5 crore; the new regime caps at 25%.
Health and education cess
4%, charged on tax plus surcharge after any marginal relief has been applied.
Marginal relief exists so that crossing the ₹12 lakh, ₹50 lakh, ₹1 crore, ₹2 crore or ₹5 crore mark can never cost more in tax than the extra income earned. It caps tax plus surcharge, and the 4% cess is then charged on the capped figure — which is why the effective marginal rate just above a threshold is 104% rather than 100%.
This page is labelled for FY 2025-26 (AY 2026-27). Slabs, 87A rebate, surcharge, marginal relief and 4% cess are whatever is coded for that year in Finaura’s tax module — not a live feed from the Income-tax Department. A later Budget can change them. Last-updated for that year is shown above the inputs.
You enter income taxed at slab rates. The tool applies the standard deduction for salary/pension, then (old regime only) the deduction ceilings you fill in. New regime: wider slabs, larger standard deduction, almost no Chapter VI-A room. Old regime: narrower unless 80C, 80D, NPS, home-loan interest and HRA are large enough. The comparison is “which costs less for these inputs,” not “which you should choose for life.”
Open the in-hand salary calculator with CTC ₹16 lakh and the same FY label if you care about monthly credit. On this page, enter a comparable taxable-income sketch and toggle regimes. Assumptions you must state to yourself: resident individual, slab-rate income only, deductions you actually use. This is not a sample of “average 16 LPA tax.” Method: methodology — tax. Vocabulary: CTC vs take-home.
Special-rate capital gains, section 89, AMT, and your employer’s actual TDS month-by-month calendar. Confirm with a return or a professional before filing.
Answers about the income tax calculator.
Continue exploring adjacent tools in this topic.
Guides that explain the ideas behind these numbers.
Cost-to-company is an employer’s cost. Take-home is a bank credit. Gross sits in between. Mixing the three is how offer letters get misread.
Being "in the 20% bracket" does not mean 20% of your income goes in tax. Confusing the rate on your next rupee with the rate on all of them leads people to fear raises, overvalue deductions and misjudge what they actually earn.
These figures are estimates based on the values and assumptions you enter. Market returns are not guaranteed. Tax, brokerage and other rules can change. Finaura is an educational tool, not personalised financial, tax, investment or legal advice. Confirm important decisions with the relevant institution or a qualified professional.