Income Tax in India: Old vs New Regime Explained
How India's income tax works, the difference between the old and new regimes, the deductions that matter, and a clear way to decide which one saves you more — with a worked comparison.
Income Tax Calculator
Verified formula Updated Jun 2026 Private — runs on your device
Verified formula
Private
Total tax payable
₹41,600
- Tax before rebate
- ₹40,000
- Section 87A rebate
- ₹0
- Health & education cess (4%)
- ₹1,600
For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.
How to use the Income Tax Calculator
The Income Tax Calculator works out your total tax payable, along with 3 related figures in an instant. Enter annual taxable income and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.
- Enter the annual taxable income.
- Read off your total tax payable, together with tax before rebate, section 87a rebate and health & education cess (4%) — the calculator updates automatically, with no button to press.
Worked example
For example, with annual taxable income of ₹900,000, the total tax payable is ₹41,600.
| Annual taxable income | ₹900,000 |
|---|
| Tax before rebate | ₹40,000 |
|---|---|
| Section 87A rebate | ₹0 |
| Health & education cess (4%) | ₹1,600 |
| Total tax payable | ₹41,600 |
Results are estimates for educational use, not professional advice.
Frequently asked questions
It uses the new tax regime slabs for FY 2024-25 (AY 2025-26): nil up to ₹3 lakh, 5% from ₹3–7 lakh, 10% from ₹7–10 lakh, 15% from ₹10–12 lakh, 20% from ₹12–15 lakh and 30% above ₹15 lakh.
Under the new regime, if your taxable income is up to ₹7 lakh the tax is fully rebated, so your tax payable becomes zero. Above ₹7 lakh the rebate no longer applies.
Yes. A 4% health and education cess is added on the tax after the rebate, and the calculator shows it separately before the total.
It assumes you have already arrived at taxable income, and it excludes surcharge on very high incomes, marginal relief and old-regime deductions. Treat it as an estimate, not tax advice.
Enter the annual taxable income. Read off your total tax payable, together with tax before rebate, section 87a rebate and health & education cess (4%) — the calculator updates automatically, with no button to press.
Related guides
Income Tax Table: Tax before rebate by Annual taxable income
Reference table of tax before rebate for Income Tax across a range of annual taxable income values — exact, engine-computed figures you can read off at a glance.
How to Calculate Income Tax: Formula, Steps & Examples
Learn how to calculate Income Tax — the formula explained step by step, with worked examples and a free calculator to check your answer.
GST in India Explained: Rates, Calculation and Examples
A plain-English guide to India's Goods and Services Tax — why it was introduced, the rate slabs, how to add and remove GST, input tax credit, the CGST/SGST/IGST split, and who must register, with worked examples.