Compare the default and old tax regimes using your normal slab-rate income, eligible deductions and taxes already paid.
Income Tax Calculator for FY 2025-26 and Tax Year 2026-27
This free Income Tax Calculator helps you compare estimated tax under the default tax regime and the old tax regime. Enter salary, business or professional profit, house-property income or loss, other normal-rate income, eligible deductions and taxes already paid. The result shows estimated taxable income, rebate, surcharge, cess and the balance payable or potential refund position under both regimes.
The calculator supports FY 2025-26 (AY 2026-27) under the Income-tax Act, 1961 and Tax Year 2026-27 beginning 1 April 2026 under the Income-tax Act, 2025. The slab rates used for these two periods are currently the same, although the governing Act and section references differ.
How to Use the Income Tax Calculator
- Select the relevant financial or tax period and your taxpayer type.
- Enter gross salary or taxable pension. The applicable standard deduction is calculated automatically.
- Add business or professional profit, interest and other normal-rate income.
- Enter house-property income or eligible loss separately for each regime because the treatment can differ.
- Enter only those deductions and exemptions that are legally available under the selected regime.
- Add TDS, TCS, advance tax and self-assessment tax already paid to estimate the balance payable or potential refund position.
- Confirm that no special-rate income has been included, then select Compare tax regimes.
Default Tax Regime Slabs
| Taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 to ₹8,00,000 | 5% |
| ₹8,00,001 to ₹12,00,000 | 10% |
| ₹12,00,001 to ₹16,00,000 | 15% |
| ₹16,00,001 to ₹20,00,000 | 20% |
| ₹20,00,001 to ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Standard deduction and Section 87A rebate
For eligible salary or pension income, this calculator applies a standard deduction of up to ₹75,000 under the default regime and up to ₹50,000 under the old regime.
A resident individual with qualifying normal-rate income up to ₹12 lakh may receive a rebate of up to ₹60,000 under the default regime. Marginal relief may apply where income is slightly above ₹12 lakh. This benefit is a rebate from tax and should not be treated as a universal exemption for every type of income. Read the detailed TaxClear guide on Section 87A rebate for AY 2026-27.
Old Tax Regime Slabs
| Taxpayer | Nil-rate limit | Subsequent slabs |
|---|---|---|
| Individual below 60, NRI or HUF | Up to ₹2.5 lakh | 5% up to ₹5 lakh; 20% up to ₹10 lakh; 30% above ₹10 lakh |
| Resident senior citizen, 60 to 79 | Up to ₹3 lakh | 5% up to ₹5 lakh; 20% up to ₹10 lakh; 30% above ₹10 lakh |
| Resident super senior citizen, 80 or above | Up to ₹5 lakh | 20% up to ₹10 lakh; 30% above ₹10 lakh |
Under the old regime, a resident individual with total income up to ₹5 lakh may receive a Section 87A rebate of up to ₹12,500. NRIs and HUFs do not receive the resident-individual rebate, and NRIs do not receive the higher resident senior-citizen basic exemption limits.
Old Regime vs Default Regime
| Point | Default regime | Old regime |
|---|---|---|
| Tax slabs | More gradual slabs beginning above ₹4 lakh | Traditional slabs beginning above the applicable basic exemption |
| Salary standard deduction | Up to ₹75,000 | Up to ₹50,000 |
| Common deductions and exemptions | Most are unavailable; only specifically permitted items can be claimed | Eligible claims may include HRA, Section 80C and Section 80D, subject to conditions |
| Resident-individual rebate | Up to ₹60,000 for qualifying normal-rate income up to ₹12 lakh | Up to ₹12,500 where total income does not exceed ₹5 lakh |
| Best suited for | Often useful where deductions and exemptions are limited | May be useful where substantial eligible deductions or exemptions are available |
The lower-tax regime depends on the nature of your income and the deductions genuinely available to you. A lower slab rate does not automatically mean a lower final liability, and a large deduction does not automatically make the old regime better. Use actual figures rather than estimates.
Special Point for Business and Professional Income
If you have business or professional income, choosing or changing the tax regime may be subject to additional conditions, prescribed forms and restrictions. The calculator can compare the numerical outcome, but it cannot determine whether you are legally permitted to switch regimes for a particular year. Professionals using presumptive taxation can also check the Presumptive Taxation Calculator.
Illustrative Comparison
| Example input | How the calculator treats it |
|---|---|
| ₹12.75 lakh gross salary, resident individual, no other income | Applies ₹75,000 standard deduction under the default regime, leaving ₹12 lakh taxable income; qualifying rebate can reduce normal slab-rate tax to nil. |
| ₹15 lakh gross salary with eligible old-regime deductions | Computes both regimes separately after their respective standard deductions and permitted claims. |
| NRI with interest and other normal income | Uses the applicable individual slabs but does not apply the resident-individual Section 87A rebate. |
| Income above surcharge thresholds | Estimates surcharge, cess and applicable marginal relief for normal slab-rate income. |
What This Calculator Does Not Cover
- Short-term or long-term capital gains, including property, shares and mutual funds;
- Virtual digital assets or crypto income, lottery winnings and unexplained income;
- Relief under Sections 89, 90, 90A or 91 and foreign tax credit;
- Alternative Minimum Tax, brought-forward losses or complex loss set-off;
- Income taxed at a special rate or subject to a special surcharge cap; and
- Eligibility to opt in or out of a regime where procedural restrictions apply.
For property transactions, use the Property Capital Gains Calculator. Before filing, reconcile tax credits with AIS, TIS and Form 26AS.
Documents to Keep Ready
- Form 16 and salary breakup;
- Interest certificates and details of other income;
- House-property rent, municipal tax and home-loan interest records;
- Proof of deductions and exemptions being claimed;
- Business or professional income computation, where applicable; and
- TDS, TCS, advance-tax and self-assessment-tax details.
Frequently Asked Questions
Which tax regime is the default?
The concessional regime is the default regime. Eligible taxpayers may choose the old regime subject to the applicable conditions and filing procedure.
Is income up to ₹12 lakh completely exempt?
Not in every case. The nil-tax outcome generally arises through a Section 87A rebate for an eligible resident individual on qualifying normal-rate income. Special-rate income and ineligible taxpayers can produce a different result.
Why does ₹12.75 lakh salary show nil tax in the default regime?
If gross salary is ₹12.75 lakh and the full ₹75,000 standard deduction is available, taxable normal income becomes ₹12 lakh. An eligible resident individual may then receive the applicable rebate.
Can an NRI claim the Section 87A rebate?
No. The rebate is available to an eligible resident individual, not to a non-resident individual.
Should capital gains be entered as other income?
No. Capital gains may be taxed under special rules and rates. Adding them to normal income can give a misleading estimate.
Does this calculator include TDS and advance tax?
Yes. Enter taxes already paid to estimate the balance payable or potential refund position. The tool does not verify whether the credit actually appears in government records.
Is the calculator result sufficient for filing an ITR?
No. It is an estimate for comparison. The final return should consider all schedules, tax credits, losses, special-rate income, regime eligibility and supporting records.
Related TaxClear Tools and Guides
For a wider explanation of slabs, TDS, capital gains and return filing, read the Income Tax in India 2026 guide. Salaried taxpayers can also review the AY 2026-27 salaried ITR guide.
Need Help With Your Income Tax Return?
A calculator gives an estimate; correct filing also requires reconciliation of income, deductions, tax credits and the applicable ITR schedules.
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