Income Tax & Earnings After Tax Calculator (FY 2025-26)
Choosing between the old and new tax regimes is one of the most consequential financial decisions a salaried Indian makes each year, and the right answer depends entirely on your income and the tax deductions you can claim. This income tax calculator settles it for FY 2025-26 and reveals your earnings after tax in the process. Enter your gross salary and the deductions you claim, and it works out your taxable income and the tax under both regimes — applying the latest slabs, the enhanced Section 87A rebate, any surcharge, and the 4% health and education cess — then tells you which tax regime leaves more take-home pay in your pocket. Think of it as a salary calculator that shows your home salary after every statutory cut, including professional tax where your state levies it: subtract the tax from your gross salary and what remains is your earnings after tax. The new regime offers lower slab rates but few deductions, while the old regime rewards those who invest in 80C, pay home-loan interest, or claim HRA. See both side by side before you decide.
Old-regime deductions
The New Regime saves you
₹1,05,300
New Regime
₹97,500
Total tax payable (incl. cess)
- Taxable income
- ₹14,25,000
- Deductions
- ₹75,000
- Tax before rebate
- ₹93,750
- 87A rebate
- − ₹0
- Health & edu cess
- ₹3,750
- Effective rate
- 6.50%
Old Regime
₹2,02,800
Total tax payable (incl. cess)
- Taxable income
- ₹12,75,000
- Deductions
- ₹2,25,000
- Tax before rebate
- ₹1,95,000
- 87A rebate
- − ₹0
- Health & edu cess
- ₹7,800
- Effective rate
- 13.52%
Computed for FY 2025-26 (AY 2026-27). Figures are indicative; consult a tax professional before filing.
About the Income Tax Calculator (FY 2025-26)
An income tax calculator estimates your tax liability for the financial year by applying the relevant slab rates, rebate, surcharge, and cess to your taxable income. This tool computes both the old and new regimes so you can compare them directly, and by subtracting the tax from your gross salary it shows the earnings after tax — the take-home pay you actually keep — under each option.
Why it is useful
The regime that saves the most varies from person to person, and guessing can cost you thousands. By computing both outcomes with your actual numbers, this calculator removes the uncertainty and shows the exact tax and savings under each, so you can opt for the cheaper one with confidence.
How the calculation works
For each regime, the calculator subtracts the standard deduction and any eligible deductions to find taxable income, applies the slab rates, deducts the Section 87A rebate if you qualify, adds any surcharge for high incomes, and finally adds a 4% health and education cess. The lower of the two totals is your better option.
Key inputs explained
- Gross income: Your total annual salary and other taxable income.
- Deductions: Old-regime claims such as 80C, 80D, HRA, and home-loan interest.
- Standard deduction: Applied automatically for salaried individuals in both regimes.
Example calculation
Inputs
- Gross salary
- ₹12,00,000
- 80C deduction
- ₹1,50,000
- Standard deduction
- ₹75,000 (new) / ₹50,000 (old)
Calculation breakdown
- New regime taxable
- 12,00,000 − 75,000 = ₹11,25,000
- New regime tax
- ₹0 (87A rebate up to ₹12 lakh income)
- Old regime taxable
- 12,00,000 − 50,000 − 1,50,000 = ₹10,00,000
Thanks to the enhanced 87A rebate, a ₹12 lakh income pays no tax under the new regime here, while the old regime still levies tax even after 80C — so the new regime wins for this profile.
Benefits
- Compares both regimes with your real numbers.
- Applies the latest FY 2025-26 slabs, rebate, surcharge, and cess.
- Shows the exact rupee savings of choosing one regime over the other.
Limitations
- Estimates only — not a substitute for filing or professional advice.
- Tax rules can change with the Finance Act and notifications.
- May not cover every niche deduction or special income type.
Tips
- Add up all old-regime deductions before deciding — small ones add up.
- Salaried employees get a standard deduction in both regimes.
- Re-check your choice each year, as slabs and rebates change.
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About this calculator
The Income Tax Calculator (FY 2025-26) is built and maintained by the PaisaBot team. All calculations run instantly in your browser using established financial formulas, and we use high-precision arithmetic to keep the results reliable.
Data accuracy: Interest rates, tax slabs, and scheme rules are updated periodically, but figures can change with RBI, government, and lender revisions. Always confirm the latest rates with your bank or an official source before acting.
Educational purpose: This tool is provided for general information and financial education only. It does not constitute investment, tax, or legal advice. For decisions specific to your situation, please consult a qualified financial advisor.