How to Use the Income Tax Calculator: A Step-by-Step Guide

The Income Tax Calculator compares your tax under India’s new and old regimes in a couple of clicks. Here’s how to get the most out of every field.

Step 1: Choose the financial year

Start by picking the financial year. The calculator supports FY 2025-26 (AY 2026-27) and FY 2024-25 (AY 2025-26). This matters because the new-regime slabs and the Section 87A rebate differ between the two — the rebate covers taxable income up to ₹12 lakh in 2025-26 but only ₹7 lakh in 2024-25. Selecting the right year ensures the slabs match your situation.

Step 2: Set residential status and age

Next, choose your age group: below 60, senior citizen (60–80), or super senior (80+). Under the old regime, the basic exemption rises with age — ₹2.5 lakh, ₹3 lakh, and ₹5 lakh respectively — which lowers tax for older taxpayers. The new regime treats all ages the same, so this field only changes the old-regime figure.

Step 3: Enter income and standard deduction

Type your gross annual income and tick the salaried box. Salaried taxpayers get a standard deduction — ₹75,000 in the new regime, ₹50,000 in the old — applied automatically before the slabs. If you’re not salaried (for example, you have only business or other income), leave it unticked.

Step 4: Add your deductions

Enter the total of your old-regime deductions: Section 80C investments, 80D health insurance, HRA, NPS, and home-loan interest. The calculator applies these to the old regime only, because the new regime disallows them. Not sure how big your HRA exemption is? Work it out with the HRA Calculator first, then add it here. For the full menu of deductions, see our tax-saving guide.

Step 5: Read the results

The calculator shows both regimes side by side, highlights the cheaper one with a “Best” badge, and tells you how much you save. Click View breakdown on either card to see the slab-wise tax, the 87A rebate, any surcharge (for incomes above ₹50 lakh, with marginal relief), and the 4% cess. The Insights panel translates the numbers into plain advice — whether your deductions justify the old regime, your effective tax rate, and your assessment year.

Make it a habit

Run the calculator early in the financial year, not just at filing time. Knowing your likely tax helps you size advance-tax instalments, plan deductions before the year ends, and choose your regime deliberately. For the full theory behind the two systems, read our new vs old regime guide, then put your numbers into the Income Tax Calculator.

Informational only

The calculator is for general information, not tax advice. It covers the common salaried case but doesn’t model every exemption or special-rate income. Confirm your final liability with a qualified chartered accountant.