Income Tax Calculator : FY 2025-26 onwards

Key Highlights of Budget 2025

No Income Tax for Income Up to ₹12 Lakhs

A rebate of ₹60,000 is applicable under the new tax regime. This ensures that individuals with a total income of up to ₹12,00,000 will pay no tax.

Modified Tax Slabs for New Regime

The tax slabs have been revised for the financial year 2025-2026 (Assessment Year 2026-2027).

Income Tax Slabs and Rates for FY 2025-2026

Income Slab (₹)	Tax Rate
Up to ₹4,00,000	NIL
₹4,00,001 - ₹8,00,000	5%
₹8,00,001 - ₹12,00,000	10%
₹12,00,001 - ₹16,00,000	15%
₹16,00,001 - ₹20,00,000	20%
₹20,00,001 - ₹24,00,000	25%
Above ₹24,00,000	30%

Rebate under Section 87A

A rebate of ₹60,000 is available for individuals with a total income of up to ₹12,00,000. This effectively makes the tax liability zero for incomes up to ₹12,00,000.

Standard Deduction

The standard deduction has been increased to ₹75,000.

Marginal Relief

At the heart of the confusion lie two terms: rebate and marginal relief. Simply put, a rebate is a deduction that eliminates tax liability for individuals earning up to ₹12 lakh. On the other hand, marginal relief ensures that those earning just over ₹12 lakh aren’t unfairly taxed more than those below the threshold.

For instance, consider an individual with an income of ₹12,10,000. Without marginal relief, their tax liability would be ₹61,500 — calculated through progressive tax slabs (5% on ₹4 lakh, 10% on the next ₹4 lakh, and 15% on the additional ₹10,000). However, with marginal relief in place, this taxpayer owes just ₹10,000. The rationale? Their post-tax income should remain comparable to someone earning exactly ₹12 lakh, who pays no tax at all.

Addressing another common query, the maximum rebate available is ₹60,000, applicable to taxpayers earning up to ₹12 lakh. But there’s a cap — marginal relief is only admissible for incomes up to approximately ₹12.75 lakh. Beyond this, regular tax slabs apply without additional relief.

Note: This calculator provides an indicative estimate and should not be considered tax advice. Please consult your tax advisor before making any decisions. We are not responsible for any discrepancies or financial decisions based on these results. The website does not guarantee the accuracy, adequacy, or completeness of the information and is not liable for any errors, omissions, or outcomes resulting from its use.

INCOME TAX CALCULATOR - NEW REGIME

Calculate your income tax under the new regime here:

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