Income Tax Calculator
Calculate income tax for India (New & Old regime) and USA. See full slab-wise breakdown with effective tax rate.
Gross Income
₹8,00,000
Taxable Income
₹5,75,000
Total Tax + Cess
₹0
Effective Rate
0.00%
How to Use
- 1
Enter annual income
Type your total annual gross income.
- 2
Select regime and deductions
Choose Old or New tax regime and enter deductions like 80C, HRA.
- 3
View tax breakdown
See your taxable income, slab-wise tax, and net take-home.
How It Works
This calculator computes your income tax liability under India's New Tax Regime, Old Tax Regime, or the US federal system, showing a full slab-wise breakdown so you can see exactly how each portion of your income is taxed.
Slab-wise taxation, not a flat rate
Income tax slabs are progressive — you don't pay the top slab rate on your entire income, only on the portion that falls within each bracket. For example, if the first ₹3 lakh is taxed at 0% and the next ₹3-6 lakh at 5%, only the income within the ₹3-6 lakh band is taxed at 5%, not your whole salary.
New regime vs. old regime (India)
The New Regime offers lower slab rates but removes most deductions (80C, HRA, home loan interest, etc.). The Old Regime has higher slab rates but allows those deductions to reduce your taxable income first. Which one is cheaper depends entirely on how many deductions you actually claim — this calculator lets you compare both side by side.
Standard deduction and the 87A rebate
A standard deduction (₹75,000 new regime / ₹50,000 old regime for FY 2024-25) is subtracted from salary income automatically before slab tax is applied. Separately, Section 87A gives a full tax rebate (zero tax) if your taxable income is at or below ₹7 lakh (new regime) or ₹5 lakh (old regime) — even though the slabs technically start taxing before that threshold.
Examples
₹12,00,000 salary, New Regime, no other deductions
After the ₹75,000 standard deduction, taxable income is ₹11,25,000. Tax is computed slab-by-slab on that amount, giving an effective tax rate noticeably lower than the top slab rate you fall into — the calculator shows this exact breakdown.
Same salary, Old Regime with ₹2,50,000 in 80C + HRA + home loan deductions
Taxable income drops to roughly ₹9,00,000 after the ₹50,000 standard deduction and ₹2,50,000 of other deductions — in this case the Old Regime can end up cheaper than the New Regime despite higher slab rates, because the deductions shrink the taxable base substantially.
Common Use Cases
- Deciding between the New and Old tax regime before the start of a financial year
- Estimating take-home salary after tax for a job offer or raise
- Checking whether additional 80C/80D investments would meaningfully reduce your Old Regime tax liability
- US filers estimating federal tax liability across income brackets
Tips
- The regime choice generally favors New Regime if your total eligible deductions are below roughly ₹3.75-4 lakh, and Old Regime if they exceed that — but always compute both directly since the crossover point shifts slightly by income level.
- Don't forget employer NPS contribution (Section 80CCD(2)) — it's one of the few deductions still available under the New Regime and is easy to overlook.
- This calculator estimates income tax only — it doesn't include surcharge (for very high incomes) or cess, which apply on top of the computed tax amount.
Frequently Asked Questions
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