How is Indian income tax calculated under the new regime?

The new (default) regime uses progressive slabs. For FY 2024-25 there is no tax up to ₹3,00,000, then 5%, 10%, 15%, 20% and 30% on higher bands. A ₹75,000 standard deduction applies to salaried individuals, and a 4% Health & Education Cess is added on the tax amount.

What is the standard deduction in the new regime?

Salaried individuals get a standard deduction of ₹75,000 from FY 2024-25 onward (it was ₹50,000 for FY 2023-24). This calculator applies the correct amount for the year you select.

What is the section 87A rebate?

The section 87A rebate makes net taxable income up to ₹7,00,000 (FY 2023-24 and FY 2024-25) effectively tax-free in the new regime. Budget 2025 raised this so income up to ₹12,00,000 is tax-free for FY 2025-26. The rebate is explained in the results but not auto-applied to the slab breakdown.

Does this include the 4% Health & Education Cess?

The calculator shows income tax before cess. Because cess is 4% of the tax (not of income), you can multiply the tax figure by 1.04 to get the all-in amount. We keep it separate so the slab breakdown stays accurate.

What is the difference between effective and marginal tax rate?

Your effective rate is total tax divided by income (your true average). Your marginal rate is the rate on your next rupee earned, set by the highest slab you reach. They are usually very different because lower slabs are taxed at lower rates.

Old regime or new regime — which does this use?

This calculator models the new (default) regime, which is the default from FY 2023-24. The optional old regime lets you claim deductions such as 80C, 80D and HRA, and is not modelled here.

Can I use this for previous financial years?

Yes. Use the year selector to view FY 2023-24, FY 2024-25, FY 2025-26 or FY 2026-27. Each year uses its own official slabs and standard deduction; FY 2026-27 (the latest) carries forward the FY 2025-26 slabs pending the Union Budget 2026.

What is not included?

This tool does not include the surcharge for high incomes, the old regime and its deductions, capital gains tax, EPF, or professional tax. Consult a chartered accountant or the Income Tax Department for complex situations.

India Income Tax Calculator — FY 2023-24 to 2026-27

How to use India Income Tax Calculator

This India income tax calculator estimates your tax under the new (default) regime based on your annual income and the financial year you select. Choose between FY 2023-24, FY 2024-25, FY 2025-26 and FY 2026-27 — the 2025-26 year reflects the Union Budget 2025 slab overhaul (carried forward to 2026-27 pending Budget 2026), while earlier years use their own official slabs. The calculator applies the correct standard deduction (₹50,000 for 2023-24, ₹75,000 thereafter), shows your effective and marginal rate, and gives a slab-by-slab breakdown plus your take-home pay. A 4% Health & Education Cess applies on the tax shown — multiply by 1.04 for the all-in figure.

Select your financial year (FY 2023-24, 2024-25, 2025-26, or 2026-27) from the dropdown.
Enter your annual gross income (salary before tax).
Keep the filing status as Individual — India taxes individuals under the new regime.
Click Calculate to see your income tax, effective rate and marginal rate.
Review the slab-by-slab breakdown, then multiply the tax by 1.04 for the 4% cess.

Your data never leaves your device — 100% private processing.

How the new-regime slabs work

The new (default) regime taxes only the income within each slab, not your whole income. For FY 2024-25, after the ₹75,000 standard deduction, a salary of ₹12,00,000 becomes ₹11,25,000 taxable: nothing on the first ₹3,00,000, 5% on the next ₹4,00,000 (₹20,000), 10% on the next ₹3,00,000 (₹30,000) and 15% on the remaining ₹1,25,000 (₹18,750) — a total of ₹68,750 in income tax before the 4% cess.

FY 2024-25 new-regime slabs
Net Taxable Income	Tax Rate
₹0 – ₹3,00,000	0%
₹3,00,001 – ₹7,00,000	5%
₹7,00,001 – ₹10,00,000	10%
₹10,00,001 – ₹12,00,000	15%
₹12,00,001 – ₹15,00,000	20%
Above ₹15,00,000	30%

New regime vs old regime and the 87A rebate

The new regime is the default: lower slab rates, a ₹75,000 standard deduction, but almost no other deductions. The optional old regime has higher rates but allows 80C, 80D, HRA and home-loan interest. Crucially, the section 87A rebate makes net taxable income up to ₹7,00,000 (FY 2024-25) tax-free in the new regime — and Budget 2025 raised that to ₹12,00,000 for FY 2025-26. This calculator models the new regime and explains the rebate in the results.

Health & Education Cess and surcharge

A 4% Health & Education Cess is charged on your income tax (after rebate), so the all-in figure is the tax shown × 1.04. High earners also pay a surcharge (10%, 15% or 25% of tax) once income crosses ₹50 lakh, ₹1 crore and ₹2 crore. The surcharge is not modelled here; for high incomes, consult a chartered accountant.

Effective versus marginal tax rate

Your effective tax rate is your total tax divided by total income — your true average. Your marginal rate is the rate on your next rupee, set by the highest slab you reach. Because the first slab is tax-free and lower slabs use lower rates, your effective rate is usually much lower than your marginal rate. Understanding the difference helps with decisions about bonuses, investments and regime choice.

Worked examples

Individual, ₹10,00,000 income, FY 2024-25

Inputs: ₹10,00,000 income

Result: ~₹42,500 income tax (taxable ₹9,25,000) · marginal 10% (before cess)

Individual, ₹12,00,000 income, FY 2024-25

Inputs: ₹12,00,000 income

Result: ~₹68,750 income tax (taxable ₹11,25,000) · marginal 15% (before cess)

Individual, ₹16,75,000 income, FY 2025-26

Inputs: ₹16,75,000 income

Result: ~₹1,20,000 income tax (taxable ₹16,00,000) · marginal 15% (before cess)

Glossary

New (default) regime: The default tax regime under section 115BAC with lower slab rates and minimal deductions.
Old regime: The optional regime with higher rates but deductions like 80C, 80D, HRA and home-loan interest.
Standard deduction: A fixed reduction from salary — ₹50,000 for FY 2023-24, ₹75,000 from FY 2024-25 (new regime).
Section 87A rebate: A rebate that makes net taxable income up to ₹7,00,000 (₹12,00,000 from FY 2025-26) tax-free in the new regime.
Health & Education Cess: A 4% levy on the income tax amount (not on income) that funds health and education.
Effective tax rate: Total tax owed divided by total income — your true average tax rate.
Marginal tax rate: The tax rate applied to your next rupee of income, set by the highest slab you reach.
Financial year (FY): India’s tax year, running 1 April to 31 March, assessed in the following assessment year.

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India Income Tax Calculator

Tax Calculator

How to use India Income Tax Calculator

How the new-regime slabs work

New regime vs old regime and the 87A rebate

Health & Education Cess and surcharge

Effective versus marginal tax rate

Worked examples

Glossary

Related reading

Frequently Asked Questions

Why use India Income Tax Calculator?

Common use cases

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