Free instant salary tax calculator for India FY 2025-26. ₹75,000 standard deduction, new regime slabs, surcharge & cess. Accurate, no login. Calculate now!
If you're a salaried employee trying to figure out exactly how much tax you owe, whether you're eligible for a TDS refund, or how your take-home pay changes under the New versus Old Regime, this page covers all of it. Use the free Toolisky salary tax calculator to get your answer in under a minute — then read on for the complete FY 2025–26 guide covering tax slabs, standard deduction, surcharge, Section 87A rebate, NRI taxation, and the most common mistakes salaried employees make every year.
The Salary Tax Calculator on Toolisky is a free, browser-based tool that computes your exact income tax liability as a salaried employee in India for FY 2025–26 (AY 2026–27). Enter your gross annual salary, TDS deducted, and residency status — the tool applies the correct tax slabs, the ₹75,000 standard deduction, Section 87A rebate (if applicable), surcharge, and 4% Health & Education Cess, then tells you your total tax liability, net take-home salary, and whether you're owed a refund or have additional tax to pay.
Unlike generic tax tools, this calculator handles residents, NRIs, senior citizens, job-switchers with two Form 16s, and mid-year increment scenarios — all in one place. It covers both the New Regime and the Old Regime so you can compare your exact tax liability under each before deciding which to file under.
Go to toolisky.com/salary-tax-calculator-india. It loads instantly on any browser — mobile or desktop. No app or signup needed.
Choose Resident or Non-Resident (NRI). This determines whether the Section 87A rebate applies to you. Residents who stayed in India for 182+ days in the financial year are classified as Resident; everyone else is NRI for tax purposes.
Select New Regime or Old Regime. New Regime has lower slabs but no deductions. Old Regime has higher slabs but allows Section 80C, 80D, 80G deductions. If unsure, try both and compare — the tool makes this instant.
Include everything your employer pays you: basic salary, DA, special allowance, HRA, LTA, bonuses, incentives, and commissions from all employers during the year. If you switched jobs, add both salaries together. If you got a mid-year increment, include the higher amount for the remaining months.
Check your latest salary slip or Form 16 for cumulative TDS deducted through the year. Most salaried employees don't pay advance tax — if you haven't, leave it at zero.
Enter your Section 80C investments (LIC, PF, ELSS, FD — capped at ₹1.5L), Section 80D medical insurance premiums, and Section 80G donations. These only reduce tax in the Old Regime; in the New Regime they have no effect.
The tool shows your gross income, standard deduction, taxable income, income tax, surcharge, cess, total tax liability, TDS credit, and your final refund amount or additional tax due — with a full line-by-line breakdown.
The New Tax Regime under Section 115BAC(1A) is the default regime for salaried employees from FY 2023–24 onwards. It offers significantly lower tax rates compared to the Old Regime but does not allow any deductions except the ₹75,000 standard deduction.
These slabs apply after the ₹75,000 standard deduction has been subtracted from your gross salary. Tax is calculated progressively — you pay each rate only on the income within that band, not on your total income.
The Old Tax Regime has higher slab rates but allows a wide range of deductions under Chapter VI-A. From FY 2025–26, the standard deduction under the Old Regime is ₹75,000 (updated from ₹50,000 previously — this is often misunderstood).
| Income range | Tax rate (below 60) | Senior citizen (60–79) | Super senior (80+) |
|---|---|---|---|
| ₹0 – ₹2,50,000 | 0% | 0% | 0% |
| ₹2,50,001 – ₹3,00,000 | 5% | 0% | 0% |
| ₹3,00,001 – ₹5,00,000 | 5% | 5% | 0% |
| ₹5,00,001 – ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
Senior citizens (age 60–79) get a basic exemption limit of ₹3L instead of ₹2.5L. Super senior citizens (80+) get ₹5L exemption. These age-based benefits are exclusively available in the Old Regime — the New Regime does not differentiate by age.
The standard deduction is a flat ₹75,000 deducted automatically from every salaried employee's gross income before tax is calculated. No documentation, no proof, no conditions — it applies to all salaried individuals regardless of their actual expenses.
This is the single most important benefit available to salaried employees in FY 2025–26. Many employees calculate tax on their full salary and end up overestimating their liability. The standard deduction changes the math significantly:
| Gross salary | Standard deduction | Taxable income (New Regime) |
|---|---|---|
| ₹8,00,000 | ₹75,000 | ₹7,25,000 |
| ₹12,75,000 | ₹75,000 | ₹12,00,000 → zero tax (87A) |
| ₹20,00,000 | ₹75,000 | ₹19,25,000 |
| ₹40,00,000 | ₹75,000 | ₹39,25,000 |
| ₹1,00,00,000 | ₹75,000 | ₹99,25,000 |
A key implication: salaried employees with a gross salary up to ₹12,75,000 can have taxable income at or below ₹12L after the standard deduction, making their entire tax liability zero under the New Regime thanks to Section 87A. See the standard deduction tax impact calculator to model this for your specific salary.
Section 87A provides a full tax rebate to Resident Individuals whose taxable income does not exceed ₹12,00,000 under the New Regime. The rebate wipes out the entire income tax liability — so if your taxable income is ₹12L or below, you pay zero income tax (before cess), even though the calculated tax on ₹12L would otherwise be ₹60,000.
Only Resident Individuals. NRIs cannot claim Section 87A rebate, regardless of income level or tax regime chosen.
Taxable income must be ₹12,00,000 or below. If it's ₹12,00,001 — just ₹1 over the limit — the rebate vanishes entirely and full tax applies.
Under the Old Regime, Section 87A provides a smaller rebate (up to ₹12,500) for residents with taxable income up to ₹5L. It does not offer the full zero-tax benefit available in the New Regime.
Surcharge is an additional tax levied on the income tax itself — not on income — for individuals with very high earnings. The 4% Health & Education Cess is then applied on top of (income tax + surcharge) and is mandatory for every taxpayer without exception.
| Income slab | Surcharge rate | Effect on total tax |
|---|---|---|
| Up to ₹50 lakh | 0% | No surcharge — most salaried employees fall here |
| ₹50L – ₹1 crore | 10% on tax | Adds ~10% to your calculated income tax |
| ₹1Cr – ₹2 crore | 15% on tax | Significant addition — plan ahead |
| ₹2Cr – ₹5 crore | 25% on tax | Capped at 25% under New Regime |
| Above ₹5 crore | 37% on tax (Old Regime) / 25% (New Regime) | New Regime caps surcharge at 25% |
For a practical example: if your income is ₹75 lakh and your calculated tax is ₹15.5L, surcharge adds ₹1.55L (10%), making it ₹17.05L before cess. Then 4% cess = ₹68,200. Total tax: ₹17,73,200. Many high-income employees underestimate their liability by forgetting surcharge entirely. The salary tax calculator handles all of this automatically.
TDS (Tax Deducted at Source) is the tax your employer deducts from your salary every month and deposits with the government. It's an advance payment — not your final tax liability. Your actual liability is calculated only at year-end based on your total annual income, deductions, and applicable slabs.
Your employer calculates TDS based on estimated annual income at the start of the year. Mid-year, they may not have accounted for the full ₹75,000 standard deduction, regime changes, or final income figures. The result: many salaried employees have TDS deducted in excess of their actual liability and are owed a refund.
Use the salary tax calculator with your total annual gross salary, standard deduction applied, chosen regime, and all applicable deductions.
Find cumulative TDS on your Form 16 (Part A), your payslip, or on the TRACES portal (traces.gov.in). If TDS exceeds actual liability, the difference is your refund.
File ITR-1 (Sahaj) on incometax.gov.in before July 31. Refunds are typically processed and credited to your bank account within 3–6 weeks of e-verification. Refunds do not happen automatically — you must file to claim.
Non-Resident Indians earning salary from an Indian employer or for services rendered in India are taxed on that Indian-source income. The key differences from resident taxation are:
NRIs use the same New Regime slab rates as residents (0%–30%). However, Section 87A rebate is not available to NRIs under any circumstances, regardless of income level.
NRIs earning Indian-source salary are entitled to the ₹75,000 standard deduction under the New Regime (₹50,000 under Old Regime), just like residents.
NRIs are on Old Regime by default. To opt for New Regime, submit Form 10-IEA to the Income Tax Department. New Regime typically results in lower tax for NRIs with minimal deductions.
NRIs face the same surcharge slabs as residents. Under the New Regime, surcharge is capped at 25%. The 4% Health & Education Cess applies to all NRI taxpayers without exception.
For an NRI earning ₹15L from an Indian company: taxable income = ₹15L − ₹75K = ₹14,25,000. Tax under New Regime = ₹0 + ₹20,000 + ₹40,000 + ₹33,750 = ₹93,750. Add 4% cess = ₹3,750. Total tax: ₹97,500. No Section 87A rebate applies even though this would be zero for a resident at the same income.
Raj is 35, resident, gross salary ₹25,00,000, TDS deducted ₹3,00,000 by employer.
Priya is 29, resident, gross salary ₹12,75,000, TDS deducted ₹1,10,000.
Vikram switched jobs: earned ₹18L at first job (TDS ₹1.5L), then ₹24L annualised at second job for 6 months (actual ₹12L earned, TDS ₹1.8L). Total salary: ₹30L, total TDS: ₹3.3L.
Neha is NRI, earns ₹20L salary from Delhi office, TDS ₹2.5L deducted.
Suresh is 64, senior citizen, Old Regime, gross salary ₹8L, Section 80C ₹1L, health insurance 80D ₹50,000.
The most widespread mistake. Tax is calculated on taxable income — gross salary minus the ₹75,000 standard deduction (and further deductions in Old Regime). Calculating on full gross overstates your liability by up to ₹22,500 (₹75K × 30% slab rate).
TDS is an advance payment, not a final settlement. Your employer calculates TDS at an estimated rate. Your actual tax is only determined when you file your ITR based on full-year income and deductions. If you don't file, you may miss a refund or be unaware of additional tax owed.
If your income is below the taxable threshold but TDS was still deducted — which happens frequently with bonuses or multiple employers — you must file ITR to claim the refund. Refunds do not happen automatically. Many employees leave money unclaimed every year simply by not filing.
Residency is determined by days in India (182+ = Resident), not by citizenship or current residence. Many employees who worked abroad for a few months assume they're NRI without checking the actual day count. Misclassifying as NRI when you're actually a Resident means losing Section 87A rebate — potentially ₹60,000 in tax savings.
The New Regime is lower for most salaried employees with minimal deductions. But for someone investing ₹1.5L in 80C, paying ₹50,000 in health insurance, and using other deductions, Old Regime can save more. Never assume — always run both calculations. Use the Old vs New Regime calculator for a side-by-side comparison.
If your salary increased mid-year or you received a performance bonus, the additional income is fully taxable. Employees often calculate tax based on their current monthly salary extrapolated to 12 months, completely missing the higher earnings from earlier in the year. Always use your actual annual total.
For incomes above ₹50 lakh, surcharge adds 10%–37% on top of your income tax — not on income, but on the tax amount. Many high earners plan based on slab rates alone and end up surprised at the final liability. The salary tax calculator accounts for surcharge automatically.
The decision comes down to one number: your total eligible deductions. If your deductions are high enough, Old Regime is better. If not, New Regime wins. Here's a rough guide:
| Your deduction profile | Likely better regime |
|---|---|
| Minimal or no 80C/80D/80G investments | New Regime |
| Full 80C (₹1.5L) + health insurance (₹25K+) | Depends — compare both |
| Full 80C + 80D + home loan interest (substantial) | Old Regime often wins |
| Senior citizen with age-based exemption benefit | Old Regime often wins |
| Income ≤ ₹12.75L (taxable ≤ ₹12L) | New Regime (zero tax via 87A) |
| NRI with no 80C/80D (not allowed) | New Regime (lower slabs) |
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Last Updated: 6 April 2026
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