Income Tax Calculator

Calculate your tax for FY 2025-26 (AY 2026-27) — Compare Old vs New Regime instantly

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Understanding Income Tax Regimes in India

India offers two income tax regimes for individual taxpayers — the Old Regime and the New Regime. The new tax regime, which became the default option from FY 2023-24, features lower tax rates but eliminates most deductions and exemptions. The old regime retains higher rates but allows you to claim deductions under sections like 80C, 80D, HRA, and more.

New Regime (Default) — FY 2025-26

The new regime for FY 2025-26 offers a standard deduction of ₹75,000 and a tax rebate under Section 87A for taxable income up to ₹12 lakh (rebate of up to ₹60,000). This makes income up to approximately ₹12.75 lakh effectively tax-free under the new regime. The tax slabs start at 5% for income between ₹4-8 lakh and go up to 30% for income above ₹24 lakh.

Old Regime — FY 2025-26

The old regime offers a standard deduction of ₹50,000 and allows various deductions: Section 80C (up to ₹1.5 lakh for PPF, ELSS, LIC, etc.), Section 80D (health insurance premiums), HRA exemption, home loan interest under Section 24, and many more. The basic exemption limit is ₹2.5 lakh, with slabs at 5%, 20%, and 30%.

When to Choose Which Regime?

  • Choose New Regime if your total deductions (80C + 80D + HRA + others) are less than ₹3-4 lakh, or if you prefer a simpler tax filing process without tracking investments and proofs.
  • Choose Old Regime if you have significant deductions — heavy home loan interest, high HRA, maximum 80C investments, health insurance, NPS contributions, etc. totaling more than ₹4 lakh.
  • Use the calculator above to compare your exact tax liability under both regimes with your actual income and deductions.

Frequently Asked Questions

Common questions about income tax for FY 2025-26

What is the income tax slab for FY 2025-26?
Under the new regime for FY 2025-26, income up to ₹4 lakh is tax-free. Income between ₹4-8 lakh is taxed at 5%, ₹8-12 lakh at 10%, ₹12-16 lakh at 15%, ₹16-20 lakh at 20%, ₹20-24 lakh at 25%, and above ₹24 lakh at 30%. Under the old regime, income up to ₹2.5 lakh is exempt, ₹2.5-5 lakh at 5%, ₹5-10 lakh at 20%, and above ₹10 lakh at 30%.
Which is better: old regime or new regime?
The new regime is generally better if you don't claim many deductions (80C, 80D, HRA, etc.). If your total deductions exceed ₹3-4 lakh, the old regime might save you more tax. Use our calculator above to compare both regimes with your actual income and deductions.
What is the standard deduction in new regime?
For FY 2025-26, the standard deduction under the new regime is ₹75,000 (increased from ₹50,000). Under the old regime, it remains at ₹50,000. This is automatically deducted from your gross salary before tax calculation.
How much tax do I pay on ₹10 lakh income?
Under the new regime, on a gross income of ₹10 lakh, after the ₹75,000 standard deduction, taxable income is ₹9,25,000. The tax works out to approximately ₹42,500 before cess. However, since taxable income exceeds ₹12 lakh after rebate consideration, section 87A rebate may apply, potentially bringing tax to zero. Use our calculator for exact figures.
What is the rebate under section 87A?
Under the new regime for FY 2025-26, if your taxable income (after standard deduction) is up to ₹12 lakh, you get a rebate of up to ₹60,000, effectively making income up to ₹12 lakh tax-free. Under the old regime, the rebate is up to ₹12,500 for taxable income up to ₹5 lakh.

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