Income Tax Calculator (FY 2025-26)
Compare your tax under the new and old regimes and see which saves you more.
About the Income Tax Calculator (FY 2025-26)
India gives taxpayers a choice every year: the new regime, with lower slab rates but almost no deductions, or the old regime, with higher rates but the full menu of deductions (80C, 80D, HRA, home-loan interest). For most salaried people since the 2025 Budget, the new regime wins — its ₹12 lakh rebate threshold means no tax at all up to ₹12.75 lakh of salary income — but the only way to know for your numbers is to compute both. This calculator does exactly that.
For FY 2025-26 the new regime slabs are: nil up to ₹4 lakh, then 5% to ₹8L, 10% to ₹12L, 15% to ₹16L, 20% to ₹20L, 25% to ₹24L and 30% above. The §87A rebate wipes out tax up to ₹12 lakh of taxable income (with marginal relief just above it), and salaried taxpayers get a ₹75,000 standard deduction. The old regime keeps the familiar 5/20/30 slabs with a ₹50,000 standard deduction and rebate up to ₹5 lakh. Both add 4% health-and-education cess.
The calculator compares gross tax under both regimes assuming no old-regime deductions beyond the standard deduction — if you claim large deductions (HRA, 80C, home-loan interest), the old regime's real position improves by your slab rate times the deduction amount, so treat the comparison as a starting point. Surcharge on incomes above ₹50 lakh is not modelled.
Frequently asked questions
- Which regime is better for FY 2025-26?
- For most salaried taxpayers without large deductions, the new regime — income up to ₹12.75 lakh (salary, after standard deduction) pays zero tax thanks to the §87A rebate. If you claim substantial deductions like HRA, 80C and home-loan interest, compute the old regime with those subtracted before deciding.
- What is the §87A rebate?
- A rebate that cancels your entire tax if taxable income is within the threshold — ₹12 lakh under the new regime (FY 2025-26) and ₹5 lakh under the old. Marginal relief in the new regime ensures earning slightly above ₹12 lakh can't leave you worse off after tax.
- Does the calculator include surcharge?
- No. Surcharge applies on taxable income above ₹50 lakh (10% and up) and is not modelled here — treat results above that level as indicative. The 4% health-and-education cess is included.
- What deductions does the old regime figure assume?
- Only the ₹50,000 standard deduction for salaried taxpayers. Add your own 80C/80D/HRA/home-loan deductions mentally: each ₹1 of deduction saves tax at your marginal slab rate.
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