ToolPilot
Income tax calculator
Estimate tax for India FY 2025-26 on gross annual salary: compare the Old and New regimes, including 4% Health & Education Cess on tax.
Your details
₹12,00,000
Both regimes are always calculated; pick which card to emphasise in the summary.
Results
Tax before cess, 4% cess, and total liability under each regime
Comparison
The New regime is lower by ₹1,17,000 for this income (including cess).
- Old regime — total tax
- ₹1,79,400
- Base ₹1,72,500 + cess ₹6,900 · Effective rate 14.95%
- New regime — total tax
- ₹62,400
- Base ₹60,000 + cess ₹2,400 · Effective rate 5.20%
Slabs used (simplified)
Progressive tax on income in each slab; cess is 4% of tax, not of income.
Old regime
- Up to ₹2.5L — 0%
- ₹2.5L – ₹5L — 5%
- ₹5L – ₹10L — 20%
- Above ₹10L — 30%
New regime (Budget 2025 slabs)
- Up to ₹4L — 0%
- ₹4L – ₹8L — 5%
- ₹8L – ₹12L — 10%
- ₹12L – ₹16L — 15%
- ₹16L – ₹20L — 20%
- ₹20L – ₹24L — 25%
- Above ₹24L — 30%
How it works
Your annual income is split across tax slabs from zero upward: only the portion falling in each band is taxed at that band's rate (progressive slabs). We compute base tax as the sum of slab taxes, then add Health and Education Cess at 4% on that base tax to get total tax. Effective tax rate is total tax divided by your gross income, shown as a percentage. The Old and New regimes use different slab breakpoints and rates; comparing both helps you see which structure would yield lower liability for the same gross figure—actual returns depend on deductions, rebates, and other provisions.
FAQ
Does this match the tax on my Form 16 or e-filing?
This tool uses slab math and 4% cess only on full gross income. It does not apply standard deduction, rebate under 87A, Chapter VI-A deductions (80C, 80D, etc.), or surcharge. Use it for quick regime comparison; file using official rules or a CA.
What is the difference between the Old and New tax regimes?
The Old regime typically allows more deductions but uses older slab rates. The New regime offers revised slabs (including wider nil-rate bands in recent budgets) with fewer deductions. You can choose each year in many cases, subject to conditions.
What is Health and Education Cess?
It is an additional levy calculated as a percentage of your income tax (not your income). This calculator uses 4% on the tax computed from slabs, as commonly applied for individual taxpayers.
Which regime should I choose for FY 2025-26?
It depends on your income, eligible deductions, and rebates. If you claim large deductions, the Old regime may win; if you have minimal deductions, the New regime slabs may be better. Compare both here, then validate with detailed computation or professional advice.