Does this include deductions, credits, or surcharges?

No — this is a base estimate before any deductions, credits, or additional charges your specific tax system may apply, such as India's Section 87A rebate or the US standard deduction.

Why is my effective rate lower than my top bracket's rate?

Because progressive taxation only applies each bracket's rate to the income within that bracket. Your effective rate (total tax ÷ total income) is always lower than your highest marginal bracket.

Why does the calculator only offer two regimes?

It currently covers India's New Regime and the US federal single-filer schedule as illustrative examples of progressive taxation; state/local taxes, other filing statuses, and other countries' systems aren't modeled yet.

Is income up to ₹12 lakh really tax-free in India's New Regime?

For most salaried filers, yes in practice — Section 87A provides a full rebate up to that income level, plus a standard deduction, even though the bracket table itself starts taxing above ₹4 lakh. This calculator doesn't apply that rebate, so it will show tax owed where your real liability may be zero.

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Finance

Tax Calculator

Estimate income tax and effective rate by bracket.

🔒 Runs entirely in your browser — nothing here is ever uploaded

About the Tax Calculator

Estimates income tax owed by applying published progressive tax-bracket rates for a chosen regime, taxing each bracket's rate only to the slice of income that falls within that bracket.

How to use it

Choose a Regime (India — New Regime or USA — Single filer).
Enter your Annual taxable income.
Read your estimated tax, effective rate, and take-home in the result panel and chart.

Formula

Tax = Σ (income within each bracket × that bracket's rate), applied progressively from the lowest bracket upward

Worked example

Under a progressive system, only the portion of income above a bracket's threshold is taxed at that bracket's higher rate — not your entire income, which is a common misconception about how progressive taxation works.

Interpreting your result

Bracket rates are published tax-year figures for the stated jurisdiction and year (India FY 2026-27 New Regime; USA 2026 single-filer federal brackets), but this tool applies them to gross income only — it does not subtract the standard deduction, India's Section 87A rebate, other credits, or add surcharge/cess. Your actual liability will differ. Always confirm with your local tax authority.

Recommendations

• Use this for rough planning only — file with your actual current-year brackets and rules when it's time to file for real.
• Compare take-home pay across regimes if your jurisdiction offers a choice, like an old vs. new tax regime.
• Effective rate, not your top bracket, is the number that best describes your real tax burden.

Frequently asked questions

The bracket rates match each jurisdiction's published tax-year figures (India FY 2026-27 New Regime, USA 2026 federal single-filer), but the estimate applies them to gross income without deductions, rebates, credits, or surcharge — so your actual bill will be lower than this tool shows in most real cases.

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Sources

IRS — Tax inflation adjustments for tax year 2026 (Rev. Proc. 2025-32) — accessed 2026-08-20
Income Tax Department (India) — New vs Old Tax Regime FAQs — accessed 2026-08-20

Disclaimer

Illustrative estimate only, not financial or tax advice. Verify figures with a licensed adviser or your local tax authority.