Income Tax Calculator (New Regime, FY 2025-26)
Under the new tax regime for FY 2025-26, income up to ₹12 lakh is effectively tax-free thanks to a rebate of up to ₹60,000 under Section 87A — ₹12.75 lakh for salaried taxpayers after the ₹75,000 standard deduction. Enter your annual income to estimate the tax, including 4% cess and marginal relief.
New-regime slabs (FY 2025-26)
| Taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Fact box. Under the new regime for FY 2025-26, a resident individual pays no income tax on taxable income up to ₹12,00,000 because the Section 87A rebate (up to ₹60,000) cancels the tax. Salaried taxpayers get this up to ₹12.75 lakh after the ₹75,000 standard deduction.
How it works
Tax is charged slab by slab on taxable income (income minus the ₹75,000 standard deduction for salaried). If taxable income is ₹12 lakh or less, the 87A rebate reduces the tax to zero. Just above ₹12 lakh, marginal relief limits the tax to the amount of income exceeding ₹12 lakh. A 4% health & education cess is added on top.
Frequently asked questions
Is income up to ₹12 lakh tax-free? Yes, under the new regime for FY 2025-26 — the Section 87A rebate of up to ₹60,000 makes tax on taxable income up to ₹12 lakh nil. For salaried taxpayers it is ₹12.75 lakh after the standard deduction.
What is the standard deduction in the new regime? ₹75,000 for salaried individuals and pensioners.
Does this calculator cover the old regime? No — it computes tax under the new regime (the default). The old regime uses different slabs and allows deductions like 80C and HRA.
What is marginal relief? For income just above ₹12 lakh, marginal relief caps the tax at the amount by which income exceeds ₹12 lakh, so a small increase in income doesn't create a disproportionate tax.
Sources
- Income Tax Department; Union Budget 2025 new-regime slabs and Section 87A rebate — incometax.gov.in.
General information, not professional advice. Actual tax depends on your full facts — consult a qualified professional. See our Disclaimer.
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