Taxable Income Calculator
See exactly how your annual gross salary turns into taxable income, one deduction at a time. This calculator deliberately stops at taxable income — it does not compute your final tax payable. For the actual tax on this amount, use the Income Tax Calculator as the next step.
Fill in the form and select "Calculate" to see your results here.
Once you know your taxable income, use the Income Tax Calculator to estimate the actual tax payable on that amount, including the Section 87A rebate, surcharge and cess.
What is the Taxable Income Calculator?
Most people know their gross salary and, eventually, their final tax bill — but the step in between, where deductions and exemptions actually get subtracted, is usually a black box handled by payroll software or a tax filer. This calculator makes that step visible: it walks from your annual gross salary down to your taxable income, showing each deduction as a separate line so you can see exactly what's being subtracted and why.
This calculator deliberately stops at taxable income and does not calculate your final tax payable. That's an intentional design choice, not a limitation — taxable income and tax payable are genuinely different numbers answering different questions, and combining them into one calculator tends to obscure how much each deduction is actually worth. Once you have your taxable income here, the Income Tax Calculator takes it the rest of the way to a rupee amount of tax owed.
How to use this calculator
- Select your tax regime — New or Old.
- Enter your annual gross salary (before any deductions).
- If you selected the old regime, enter your basic salary, HRA received, rent paid, and city type to compute your HRA exemption, plus your Section 80C investments and any other Chapter VI-A deductions (80D, 80G, 80TTA, etc.).
- Select "Calculate Taxable Income" to see a step-by-step breakdown from gross salary down to taxable income.
Formula
The new regime allows only the standard deduction — no HRA exemption, Section 80C, or other Chapter VI-A deductions apply under it at all. The old regime's HRA exemption uses the exact same least-of-three formula as our standalone HRA Calculator; if you want more precision on that piece alone (including Dearness Allowance), use that calculator directly.
Example
Consider an annual gross salary of ₹12,00,000, basic salary of ₹4,80,000, HRA received of ₹2,40,000, rent paid of ₹3,00,000, in a metro city, with ₹1,50,000 in Section 80C investments and ₹25,000 in other deductions.
Old regime:
- HRA exemption = least of (₹2,40,000 actual HRA; ₹3,00,000 − 10% × ₹4,80,000 = ₹2,52,000; 50% × ₹4,80,000 = ₹2,40,000) = ₹2,40,000
- Taxable Income = ₹12,00,000 − ₹50,000 (standard deduction) − ₹2,40,000 (HRA) − ₹1,50,000 (80C) − ₹25,000 (other) = ₹7,35,000
New regime (same ₹12,00,000 gross salary, HRA and 80C not applicable):
- Taxable Income = ₹12,00,000 − ₹75,000 (standard deduction) = ₹11,25,000
Notice that the old regime produces a lower taxable income here (₹7,35,000 vs ₹11,25,000) because it allows far more to be subtracted before slabs apply — but a lower taxable income doesn't automatically mean lower final tax, since the old regime also taxes at higher slab rates. Run both taxable income figures through the Income Tax Calculator, or use the Old vs New Tax Regime Calculator directly, to compare actual tax payable.
Factors that affect your taxable income
- Regime choice. The new regime allows only the standard deduction. The old regime allows the standard deduction plus HRA exemption, Section 80C, and other Chapter VI-A deductions — but at higher slab rates once tax is actually computed.
- Rent actually paid. HRA exemption depends on rent you actually pay, not your HRA component alone. If you pay no rent, your HRA exemption is ₹0 even if your salary includes a large HRA allowance.
- City classification. Only Delhi, Mumbai, Kolkata and Chennai qualify for the higher 50%-of-basic-salary HRA limit; every other city uses the 40% limit.
- Section 80C cap. Investments in PPF, ELSS, life insurance premiums, and similar instruments are combined under Section 80C, capped at ₹1,50,000 total regardless of how much more you invest.
- Other deductions. This calculator uses a single combined field for other common deductions (80D health insurance, 80G donations, 80TTA savings interest, etc.) rather than a separate field for each, to keep the form manageable — enter your total for all of them combined.
Frequently Asked Questions
Gross salary is the total amount your employer pays you before any deductions. Taxable income is what's left after subtracting the deductions and exemptions your regime allows (standard deduction, HRA exemption, 80C, etc.) — this is the amount tax slabs are actually applied to. Tax payable is the final rupee amount you owe, calculated by running your taxable income through the slab rates, rebate, surcharge and cess. This calculator stops at taxable income; use the Income Tax Calculator for the last step.
The old regime allows more deductions to be subtracted before tax slabs apply — HRA exemption, Section 80C, and other Chapter VI-A deductions on top of its ₹50,000 standard deduction. The new regime only allows a ₹75,000 standard deduction, so more of your gross salary remains taxable. A lower taxable income under the old regime doesn't automatically mean lower final tax, though, since the old regime's slab rates are also higher — you need to compare actual tax payable, not just taxable income, which is exactly what the Old vs New Tax Regime Calculator does.
Under the new tax regime, you cannot claim HRA exemption, Section 80C investments (PPF, ELSS, life insurance premiums, etc.), Section 80D health insurance premiums, or most other Chapter VI-A deductions. The new regime allows only the ₹75,000 standard deduction for salaried taxpayers and a small number of exceptions such as the employer's NPS contribution under Section 80CCD(2). This is why this calculator hides those input fields entirely when you select the new regime — they simply don't apply.
No. This calculator covers the deductions most salaried taxpayers actually use — standard deduction, HRA exemption, Section 80C, and a single combined field for other common deductions like 80D, 80G or 80TTA. If you have less common deductions not listed here, add their total to the "Other deductions" field to get a closer estimate. It won't capture every possible provision in the Income Tax Act, but it covers the ones that matter for most people.
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Tax calculations are estimates based on the selected financial year and the information entered. They do not account for every deduction, exemption, or edge case in the Income Tax Act, and are not a substitute for professional tax advice. See our full disclaimer.