Income Tax Calculator: Calculate Your Taxes Under Old & New Tax Regime (2025)

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Income Tax Calculator

Calculate your tax liability under the Old and New Tax Regime

Your Tax Liability:

₹0.00

How to Use the Income Tax Calculator

  1. Enter Your Annual Income: Input your total income for the financial year.

  2. Select Deductions (Old Regime): Add deductions like Section 80C, 80D, HRA, etc.

  3. Choose Tax Regime: Select between Old and New Tax Regime.

  4. Calculate: Click the “Calculate Tax” button to see your tax liability.

An income tax calculator is an indispensable tool for anyone navigating India’s complex tax system, especially with the co-existence of the old and new tax regimes. Whether you’re a salaried employee, freelancer, or small business owner, understanding your tax liability is crucial for financial planning. As of March 20, 2025, India’s tax landscape offers two options: the old tax regime with deductions and the new tax regime with lower rates but fewer exemptions. But how do you decide which is better? Enter the online income tax calculator—a fast, accurate way to compare both regimes.

Our Income Tax Calculator is designed to help you calculate your tax liability under both the Old and New Tax Regimes. Whether you’re a salaried individual, a freelancer, or a business owner, this tool will provide accurate results in seconds. 

In this guide, we’ll break down everything you need to know about income tax calculators in India, including how they work, why they matter, Let’s explore how an income tax calculator with old and new regime India can simplify your tax journey.

What is an Income Tax Calculator?

An income tax calculator is an online or embedded tool that estimates your tax liability based on income, deductions, and applicable tax slabs. In India, it’s particularly useful given the dual tax regimes introduced in 2020 and refined in subsequent budgets (e.g., Union Budget 2024). These calculators take inputs like annual income, age, filing status, and deductions, then compute taxes under both the old tax regime and new tax regime.

For example, a free income tax calculator 2025 might show that a salaried individual earning ₹10 lakh could save more under the new regime if they don’t claim deductions like Section 80C. Conversely, someone with significant investments might prefer the old regime. By offering instant results, an online income tax calculator eliminates guesswork, making it a must-have for taxpayers and website owners alike.

Old vs New Tax Regime in India: Key Differences

India’s tax system offers two regimes, each with distinct rules. Here’s a detailed comparison:

Aspect Old Tax Regime New Tax Regime
Tax Slabs Higher rates, more slabs Lower rates, fewer slabs
Exemptions HRA, LTA, standard deduction available Limited to standard deduction (₹75,000)
Deductions Section 80C (₹ bairro50 lakh), 80D, etc. Mostly unavailable
Rebate u/s 87A Up to ₹12,500 (income ≤ ₹5 lakh) Up to ₹25,000 (income ≤ ₹7 lakh)
Default Status Optional Default since FY 2023-24
  • Old Regime: Ideal for those with investments (e.g., PPF, ELSS) or home loans, as it allows deductions under Sections 80C, 80D, and 24(b).
  • New Regime: Suits those with minimal deductions, offering simplicity and lower rates (e.g., 5% for ₹3–6 lakh vs. 10% in the old regime).

An old vs new tax regime calculator helps you weigh these options, ensuring you choose the most tax-efficient path.

Why Use an Income Tax Calculator?

Using an income tax calculator India offers several advantages:

  1. Accuracy: Eliminates manual errors in tax computation.
  2. Time-Saving: Delivers results in seconds, unlike tedious manual calculations.
  3. Comparison: An income tax calculator with old and new regime India shows which regime saves you more.
  4. Planning: Helps adjust investments or withholdings for the financial year (e.g., FY 2025-26).
  5. Engagement: For website owners, a tax calculator tool boosts user dwell time, enhancing SEO.
  6. Dual Tax Regime Support: Calculate taxes under both the Old and New Tax Regimes.
  7. User-Friendly Interface: Easy-to-use design for seamless calculations.
  8. Accurate Results: Based on the latest tax slabs and rules for FY 2023-24.
  9. Free to Use: No hidden charges or subscriptions.
  10. Mobile-Friendly: Works seamlessly on all devices

 

Imagine a small business owner searching for the best income tax calculator for salaried employees. A custom tool on your site could keep them engaged, building trust and authority.

How to Calculate Income Tax Manually

Before coding an income tax calculator, let’s understand manual calculation for FY 2025-26 (AY 2026-27), assuming updated slabs from Budget 2024.

Old Regime Slabs (Individuals < 60 years):
Income Range Tax Rate
₹0–₹2.5 lakh 0%
₹2.5–₹5 lakh 5%
₹5–₹10 lakh 20%
Above ₹10 lakh 30%
  • Add: 4% Health & Education Cess.
  • Deductions: ₹1.5 lakh (80C), ₹50,000 (standard), etc.
New Regime Slabs:
Income Range Tax Rate
₹0–₹3 lakh 0%
₹3–₹7 lakh 5%
₹7–₹10 lakh 10%
₹10–₹12 lakh 15%
₹12–₹15 lakh 20%
Above ₹15 lakh 30%
  • Rebate: ₹25,000 if income ≤ ₹7 lakh.
  • Standard Deduction: ₹75,000.
Example (₹10 lakh income, salaried, <60 years):
  • Old Regime:
    • Taxable Income = ₹10L – ₹1.5L (80C) – ₹50,000 (standard) = ₹8L
    • Tax = ₹12,500 (5% on ₹2.5–5L) + ₹60,000 (20% on ₹5–8L) = ₹72,500
    • Cess = ₹2,900; Total = ₹75,400
  • New Regime:
    • Taxable Income = ₹10L – ₹75,000 (standard) = ₹9.25L
    • Tax = ₹20,000 (5% on ₹3–7L) + ₹22,500 (10% on ₹7–9.25L) = ₹42,500
    • Cess = ₹1,700; Total = ₹44,200

The new tax regime saves ₹31,200 here, but deductions change the outcome. An income tax calculator automates this effortlessly.

Benefits of Using the New Tax Regime

  1. Simplified Tax Structure: Fewer tax slabs make calculations easier.

  2. No Need for Investments: Ideal for those who don’t want to invest in tax-saving instruments.

  3. Higher Rebate: Rebate under Section 87A increased to ₹25,000 for income up to ₹7 lakh.

Benefits of Using the Old Tax Regime

  1. Higher Deductions: Save more with deductions under Section 80C, 80D, HRA, etc.

  2. Lower Tax Liability: Beneficial for individuals with high investments.

  3. Flexibility: Choose investments that suit your financial goals.

 

Old Tax Regime vs. New Tax Regime: Key Differences

Feature Old Tax Regime New Tax Regime
Tax Slabs Multiple slabs with higher exemptions Simplified slabs with lower exemptions
Deductions Allows deductions (Section 80C, 80D, etc.) No deductions (except standard deduction)
Standard Deduction ₹50,000 for salaried individuals ₹50,000 for salaried individuals
Rebate under Section 87A Up to ₹12,500 for income ≤ ₹5 lakh Up to ₹25,000 for income ≤ ₹7 lakh
Ideal For Individuals with high investments/deductions Individuals with minimal deductions

How to Use the Income Tax Calculator

  1. Enter Your Annual Income: Input your total income for the financial year.

  2. Select Deductions (Old Regime): Add deductions like Section 80C, 80D, HRA, etc.

  3. Choose Tax Regime: Select between Old and New Tax Regime.

  4. Calculate: Click the “Calculate Tax” button to see your tax liability.

 

FAQs

  1. Which tax regime is better?

    • It depends on your income and investments. Use our calculator to compare.

  2. Can I switch between regimes every year?

    • Yes, you can choose a different regime each financial year.

  3. Is the New Tax Regime mandatory?

    • No, it’s optional. You can continue with the Old Tax Regime if it’s more beneficial.