Tax Calculator
Free online income tax calculator — estimate your taxable income, total tax, effective tax rate and monthly take-home pay for India (new & old regime) and the USA. Includes a tax breakdown pie chart.
How income tax works
Income tax is charged on a slab basis: your taxable income is divided into bands and each band is taxed at its own rate. This calculator gives a quick estimate for India's new and old regimes and a US federal estimate for a single filer. Actual tax may vary with surcharges, state taxes and your exact deductions.
Choosing the right regime
India's new regime offers lower rates but fewer deductions, while the old regime lets you claim 80C investments, HRA and more. Compare both with your actual deductions to pick the cheaper option. In the US, compare the standard deduction against itemising.
Frequently asked questions
How is tax calculated?
Income tax is calculated on a slab (bracket) basis. Your taxable income — gross income minus the standard deduction and any eligible deductions — is split across slabs, and each slab is taxed at its own rate. The amounts are added together, then any rebate is applied and a health & education cess (India) is added to get your total tax.
What is taxable income?
Taxable income is the portion of your income that tax is actually charged on. It is your total annual income minus the standard deduction and any allowed deductions and investments (such as 80C in India's old regime). The lower your taxable income, the less tax you pay.
How can I reduce taxes legally?
You can reduce tax legally by claiming the standard deduction, investing in tax-saving instruments (PF, ELSS, PPF, life insurance under 80C in India's old regime), contributing to retirement accounts (401k/IRA in the US), claiming home loan interest, health insurance premiums and donations. Always choose the regime that gives you the lowest tax.
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Estimates only — not professional tax advice. Verify with an official tax authority or advisor.