Calculate income tax for 10+ countries. India (old vs new regime), USA (federal brackets), UK, Canada, Australia, and more. Get slab-wise breakdown and compare tax-saving options.
Income tax in India is calculated using a progressive slab system. Your income is divided into slabs, and each slab is taxed at a different rate. The formula is:
Taxable Income = Gross Income - Standard Deduction - Deductions (80C, 80D, HRA, etc.)
Tax = Sum of (Income in each slab × Slab rate)
Total Tax = Tax + 4% Health & Education Cess
Example (New Regime, Rs 12 lakh salary):
Under the old regime, you can reduce taxable income further with Section 80C (PPF, ELSS, LIC), Section 80D (health insurance), HRA exemption, and home loan interest deduction.
| Investment | Lock-in | Returns |
|---|---|---|
| PPF | 15 years | ~7.1% |
| ELSS Mutual Funds | 3 years | ~12-15% |
| LIC Premium | Policy term | ~4-6% |
| 5-Year FD | 5 years | ~6.5-7% |
| NPS (80CCD(1B)) | Till 60 | ~8-10% |
The new regime has lower rates but no deductions. The old regime is better if your deductions exceed Rs 3-4 lakh (80C + 80D + HRA + home loan). Use this calculator to compare both and choose the one that saves you more tax.
Under the new regime: 0-4 lakh is nil, 4-8 lakh is 5%, 8-12 lakh is 10%, 12-16 lakh is 15%, 16-20 lakh is 20%, 20-24 lakh is 25%, and above 24 lakh is 30%. A standard deduction of Rs 75,000 is available. Income up to Rs 12 lakh (after standard deduction) gets full rebate under section 87A.
The old regime allows: Section 80C (up to Rs 1.5 lakh for PPF, ELSS, LIC, etc.), Section 80D (up to Rs 25,000-50,000 for health insurance), HRA exemption, home loan interest (up to Rs 2 lakh under Section 24b), NPS additional deduction (up to Rs 50,000 under 80CCD(1B)), and standard deduction of Rs 50,000.
The new regime is the default from FY 2023-24. However, you can opt for the old regime while filing your ITR if it benefits you. Salaried employees can choose each year. Businesses have restrictions on switching back.
Under the new regime, if your taxable income (after standard deduction of Rs 75,000) is up to Rs 12 lakh, you get a full rebate making your tax zero. Under the old regime, the rebate applies if taxable income is up to Rs 5 lakh.
The standard deduction under the new tax regime for FY 2025-26 is Rs 75,000. This is automatically deducted from your gross salary before calculating taxable income. Under the old regime, the standard deduction is Rs 50,000.
Yes, salaried employees can switch between old and new regime every year while filing ITR. However, those with business income who opt out of the new regime cannot switch back easily. Salaried individuals have full flexibility to choose the regime that saves more tax each year.
On Rs 10 lakh salary: Under the new regime, after Rs 75,000 standard deduction, taxable income is Rs 9.25 lakh. Tax = Rs 18,750 + 4% cess = Rs 19,500. Under the old regime with full 80C (Rs 1.5L) + 80D (Rs 25K) + standard deduction (Rs 50K), taxable income drops to Rs 7.75 lakh. Tax = Rs 42,500 + cess = Rs 44,200. New regime saves Rs 24,700.
For Rs 15 lakh salary, the new regime is usually better unless you have significant deductions. Under the new regime, tax is approximately Rs 93,600 (after Rs 75K SD). Under the old regime, if your total deductions exceed Rs 3.75 lakh (80C + 80D + HRA + home loan), the old regime may save more. Use this calculator to compare both.
Senior citizens (60-80 years) get higher exemption limits under the old regime: Rs 3 lakh (vs Rs 2.5 lakh for non-seniors). Super senior citizens (80+) get Rs 5 lakh exemption. Under the new regime, the slabs are the same for all age groups.
US federal tax brackets for 2025 (single filers): 10% on $0-$11,600, 12% on $11,601-$47,150, 22% on $47,151-$100,525, 24% on $100,526-$191,950, 32% on $191,951-$243,725, 35% on $243,726-$609,350, and 37% on income above $609,350. Standard deduction is $14,600.
UK tax bands for 2025-26: Personal allowance of £12,570 is tax-free. 20% on £12,571-£50,270, 40% on £50,271-£125,140, and 45% on income above £125,140. Scotland has different bands.
No, the UAE has no personal income tax. This makes it a popular destination for expats and businesses. Corporate tax of 9% applies to businesses with profits above AED 375,000. There is a 5% VAT on goods and services.
Among the countries in this calculator, UAE and Singapore have the lowest taxes. UAE has 0% personal income tax. Singapore's top rate is 22% (above S$320,000). Other low-tax countries include Monaco, Bahamas, and Bermuda (all 0%).
Section 80C allows deductions up to Rs 1.5 lakh from your taxable income. Here are the eligible investments and expenses under the old tax regime.
| Investment / Expense | Limit | Lock-in | Returns |
|---|---|---|---|
| PPF (Public Provident Fund) | Rs 1.5 lakh | 15 years | ~7.1% |
| ELSS Mutual Funds | Rs 1.5 lakh | 3 years | ~12-15% |
| EPF / VPF | Rs 1.5 lakh | Until retirement | ~8.25% |
| LIC Premium | Rs 1.5 lakh | Policy term | ~4-6% |
| NSC (National Savings Certificate) | Rs 1.5 lakh | 5 years | ~7.7% |
| SSY (Sukanya Samriddhi) | Rs 1.5 lakh | 21 years | ~8.2% |
| Home Loan Principal | Rs 1.5 lakh | - | - |
| Tuition Fees (children) | Rs 1.5 lakh | - | - |
| 5-Year Tax Saving FD | Rs 1.5 lakh | 5 years | ~6.5-7% |
| NPS (80CCD(1B) additional) | Rs 50,000 extra | Until 60 | ~8-10% |