Income Tax Calculator (Old vs New Regime)
Calculate your income tax for FY 2025-26 (AY 2026-27) under both old and new regimes. Compare side by side and see which saves you more.
You save ₹1,05,300 with the New regime.
- Taxable income
- ₹14,25,000
- Tax before rebate
- ₹93,750
- 87A rebate
- − ₹0
- Health & edu cess (4%)
- ₹3,750
- Total tax
- ₹97,500
- Effective rate
- 6.50%
Old vs New — side by side
How income tax works in FY 2025-26 (AY 2026-27)
India has two parallel tax systems. The new regime is the default — it offers lower slab rates and a generous rebate but removes most deductions. The old regime keeps the familiar deductions (80C, 80D, HRA, home loan interest) but has higher rates. You pick whichever produces the lower tax.
New regime slabs
| Income band | Rate |
|---|---|
| Up to ₹4,00,000 | 0% |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Standard deduction is ₹75,000 and the Section 87A rebate (up to ₹60,000) makes taxable income up to ₹12,00,000 completely tax-free. A 4% cess applies on the tax.
Old regime slabs (below 60)
| Income band | Rate |
|---|---|
| Up to ₹2,50,000 | 0% |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
The old regime adds a ₹50,000 standard deduction and lets you claim 80C (up to ₹1.5 lakh), 80D, HRA, and home loan interest under Section 24(b) (up to ₹2 lakh on a self-occupied house). The 87A rebate here covers taxable income up to ₹5,00,000.
Worked example: ₹15 lakh salary, new regime
Gross salary ₹15,00,000 minus the ₹75,000 standard deduction gives a taxable income of ₹14,25,000. The slab tax works out to 5% on the ₹4–8 lakh band (₹20,000) + 10% on the ₹8–12 lakh band (₹40,000) + 15% on the remaining ₹2.25 lakh (₹33,750) = ₹93,750. Adding the 4% cess (₹3,750) gives a total tax of ₹97,500. Because taxable income exceeds ₹12 lakh, no 87A rebate applies.
How to use this calculator
Enter your gross annual income, toggle salaried status, and (if you want to test the old regime) fill in your deductions. The tool computes both regimes, shows the tax breakdown with a chart, and highlights which regime saves you more. All rates are for FY 2025-26 and are kept in a single verified configuration file.
Frequently asked questions
Which regime is better for FY 2025-26, old or new?
It depends on your deductions. The new regime has lower slab rates and a larger ₹75,000 standard deduction, and makes income up to ₹12 lakh effectively tax-free via the 87A rebate. The old regime wins only if your total deductions (80C, 80D, home loan interest, HRA, etc.) are large enough to push taxable income well below the new-regime figure. This calculator computes both and tells you the cheaper one.
Is income up to ₹12 lakh really tax-free in the new regime?
Yes. For FY 2025-26 the Section 87A rebate makes tax zero for taxable income up to ₹12,00,000. For a salaried person the ₹75,000 standard deduction lifts the effective tax-free gross salary to about ₹12.75 lakh.
What is the standard deduction in each regime?
₹75,000 in the new regime and ₹50,000 in the old regime, available to salaried individuals and pensioners.
What is marginal relief above ₹12 lakh?
Just above ₹12 lakh taxable income, the extra tax cannot exceed the extra income earned over ₹12 lakh. So if your income is ₹12.1 lakh, your tax is limited to roughly ₹10,000 rather than the full slab tax. This calculator applies that relief automatically.
How is the health and education cess calculated?
A 4% health and education cess is added on top of the income tax (plus surcharge, if any) under both regimes.
Does the new regime allow 80C or HRA deductions?
No. The new regime trades away most deductions (80C, 80D, HRA, home loan interest under 24(b)) in exchange for lower rates and a higher rebate. Those deductions only apply if you choose the old regime.
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Disclaimer: These calculators provide estimates for general information only and are not financial, tax, or investment advice. Figures use FY 2025-26 (AY 2026-27) rules and standard assumptions; your actual numbers may differ. Verify with a qualified professional before acting.