Income Tax Calculator India 2026 🇮🇳

Calculate your exact tax for FY 2025-26 with support for the new ₹12L rebate, surcharge relief, and 80CCD(2) NPS deductions.

💰 Income Sources

Include basic, allowances, and bonuses.

Max ₹2L cap (Old Regime).

🏢 HRA & Rent Support
🛡️ Deductions (Chapter VI-A)

Max ₹1.5L cap.

Additional ₹50,000 cap.

Allowed in BOTH regimes.

*Note: 80G has complex qualifying limits (10% of total income) not fully modeled here.

Verified Rules
Old Regime Tax
₹0
Taxable: ₹0
Verified Rules
New Regime Tax
₹0
Taxable: ₹0

The Verdict

The Equal is better 🚀

You save ₹0 annually!

Both regimes result in the same tax liability for your income profile.

Calculation follows Finance Act & Union Budget rules with statutory marginal relief safeguards.

Calculation Transparency

Component
Old Regime
New Regime
Base Slab Tax₹0₹0
Total Tax (inc. 4% Cess)₹0₹0

Why does tax increase after ₹12 Lakh? (The Cliff Explained) ⚡

Most elementary calculators show a sudden tax jump of over ₹60,000 the second your taxable income hits ₹12,00,001. This occurs because the Section 87A rebate (worth ₹60,000) is officially restricted to those with income up to ₹12 Lakhs.

Our calculator correctly applies Marginal Relief. Instead of penalizing you for earning a single rupee extra, the law ensures that your increase in tax cannot exceed your increase in income.

Case Study: Income ₹12,10,000

  • Base Slab Tax:₹61,500
  • Without Relief Pay:₹61,500
  • With This Tool Pay:₹10,000

"By applying Marginal Relief, we save you ₹51,500 in this specific scenario precisely as per the latest 2026 tax rules."

The ₹12.75L Zero-Tax Reality — Explained 🛡️

Under the Union Budget 2025 New Regime, you can earn up to ₹12.75 Lakhs without paying a single rupee in tax. Here is the mathematical bridge:

Gross Salary
₹12,75,000
Deduction
-₹75,000
Final Tax
₹0

This is possible because the ₹75,000 Standard Deduction brings your net taxable income down to exactly ₹12 Lakhs, which then triggers the full ₹60,000 Section 87A rebate, wiping out your entire bill.

Surcharge & High-Income Safety 📈

Earners making over ₹50 Lakhs face an additional Surcharge on their base tax. In the 2026 New Regime, the maximum surcharge is capped at 25%, unlike the Old Regime's 37% for ₹5Cr+ earners. Our engine dynamically calculates surcharge marginal relief to ensure no tax spikes at threshold crossings.

Financial Discovery

Maximize Your Post-Tax Salary 💰

Structure your salary components, declare the right exemptions, and leverage the full power of 80CCD(2) to retire wealthier.

Learn Tax Optimization

Actuarial & System Assumptions

This simulation engine is provided for illustrative, educational, and strategic planning purposes only. It does not constitute a financial contract, legal guarantee, or fiduciary advice.

Algorithmic Projections

Calculations rely on deterministic inputs and compounded mathematical growth models. Real-world inflation, sequence of returns, market volatility, and asset degradation will cause actual results to deviate.

Regulatory & Tax Variables

Tax brackets, government subsidies (e.g., PM Surya Ghar), and statutory interest rates are subject to continuous legislative amendments. This engine does not guarantee real-time legal compliance.

Non-Fiduciary Status

Rupee Logics is a mathematical simulator, not a SEBI-registered entity. Users are strictly advised to verify all capital allocations and liability assumptions with certified financial professionals.

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