Tax Calculator
Estimate income tax under the old and new regimes.
Union Budget slabs (old vs. new regime), plus a 4% health & education cess.
Annual Income
Effective Rate
6.0%
Total Tax Payable
₹71,500
Taxable Income
₹11,25,000
Health & Education Cess (4%)
₹2,750
Take-home Income
₹11,28,500
How this calculator works
Income tax is progressive almost everywhere: your income is sliced into bands, and each slice is taxed at its own rate, not the top rate applied to your whole income. A standard deduction (or personal allowance) is subtracted first, so only income above that threshold is taxed at all.
Worked example (India, new regime)
On ₹12,00,000 income under India's new regime, the ₹75,000 standard deduction brings taxable income to ₹11,25,000. That's sliced across the slabs — 0% up to ₹3L, 5% from ₹3-7L (₹20,000), 10% from ₹7-10L (₹30,000), 15% from ₹10-11.25L (₹18,750) — for a tax before cess of ₹68,750, plus a 4% health and education cess (₹2,750), landing at ₹71,500 total tax.
Marginal rate vs. effective rate
Your marginal rate (the rate on your last rupee/dollar earned) is almost always higher than your effective rate (total tax ÷ total income), because only your top slice of income is taxed at the top rate — everything below it is taxed at the lower rates that apply to those bands. This calculator's result card shows the effective rate, which is the more meaningful number for understanding your actual overall tax burden.
The India rebate (Section 87A)
India also applies a rebate that can zero out tax entirely for lower incomes — up to ₹7L taxable income under the new regime, or ₹5L under the old regime — even though the slab calculation alone would otherwise show some tax due. This calculator applies that rebate automatically, which is why tax can jump from ₹0 to a real amount with a relatively small increase in income right around that threshold.
How accurate are the non-India countries?
The India calculation follows the actual Union Budget slabs and cess. The other seven countries use each nation's real federal/national brackets and standard deduction, but simplify or exclude things like US state tax and FICA, UK National Insurance, Canadian provincial tax, and Germany's continuous (non-slab) formula, which is approximated here with flat bands. Treat non-India results as a reasonable estimate of national-level tax, not a complete picture of total tax liability.
Frequently Asked Questions
What's the difference between the old and new tax regimes?
The old regime allows deductions and exemptions (like Section 80C investments, HRA, etc.) against a higher rate structure, while the new regime offers lower slab rates but with most deductions removed. Which is better depends on how many deductions you actually claim.
Is this tax estimate exact?
It's a close estimate based on the slab rates and rules entered, but real tax liability can be affected by additional deductions, cess, surcharge thresholds and rule changes not captured here. Treat it as a planning estimate, not a filing figure.
Should I consult someone before choosing a regime?
Yes — use this calculator to compare scenarios, but confirm your final regime choice and filing with a qualified tax professional, especially if your income includes deductions, capital gains or multiple sources.
What's the difference between marginal and effective tax rate?
Marginal rate is what you pay on your last unit of income — the rate of your top slab. Effective rate is total tax divided by total income, which is always lower than the marginal rate since earlier, lower-taxed slabs pull the average down. Effective rate is the more meaningful number for your actual overall tax burden.
Does this calculator support countries other than India?
Yes — the country selector covers India, the US, UK, Canada, Australia, Germany, Japan and Russia, each using that country's real brackets and standard deduction. Non-India results simplify or exclude things like US state tax, UK National Insurance, and Canadian provincial tax, so treat them as national-level estimates, not complete tax liability.
This tool provides general estimates for informational purposes only and isn't financial or tax advice. Consult a qualified financial advisor or tax professional before making financial decisions.