Income Tax Calculator FY 2025-26
Calculate your income tax for FY 2025-26 (AY 2026-27). Compare old vs new tax regime side by side. Includes Section 80C, 80D, HRA, home loan interest, and standard deduction.
Your Income
New regime allows only Standard Deduction of ₹75,000 (FY 2025-26). No 80C, 80D, HRA, or home loan interest deductions apply.
Tax Calculation — New Regime
Slab-wise Breakdown
New vs Old Regime — Comparison
TL;DR for FY 2025-26 (AY 2026-27)
The new regime is the default. Under it, a resident individual pays zero tax up to ₹12 lakh of taxable income because of the enhanced Section 87A rebate (max ₹60,000). For a salaried person, the ₹75,000 standard deduction pushes that effective break-even to roughly ₹12.75 lakh of gross salary. The new regime drops almost all deductions; the old regime keeps 80C, 80D, HRA and home-loan interest, so it can still win if you claim large deductions. Use the calculator above to compare both for your numbers, then read the slab tables below to verify by hand.
Disclaimer: This page is an educational estimate for the new and old tax regimes as legislated for FY 2025-26 (AY 2026-27). It does not account for every situation (capital gains, business income, multiple house properties, foreign income, etc.) and tax rules change. It is not tax advice. Verify every figure against the official Income Tax Department portal (incometax.gov.in) and consult a qualified chartered accountant or tax professional before filing.
New regime tax slabs for FY 2025-26
These are the slabs introduced in Budget 2025 and retained for FY 2025-26. The slabs apply to taxableincome (after the ₹75,000 standard deduction for salaried taxpayers). Tax is charged band by band, not at one flat rate on the whole income.
| Taxable income band | Rate | Tax on this band |
|---|---|---|
| Up to ₹4,00,000 | Nil | ₹0 |
| ₹4,00,001 – ₹8,00,000 | 5% | up to ₹20,000 |
| ₹8,00,001 – ₹12,00,000 | 10% | up to ₹40,000 |
| ₹12,00,001 – ₹16,00,000 | 15% | up to ₹60,000 |
| ₹16,00,001 – ₹20,00,000 | 20% | up to ₹80,000 |
| ₹20,00,001 – ₹24,00,000 | 25% | up to ₹1,00,000 |
| Above ₹24,00,000 | 30% | 30% of the excess |
A 4% Health & Education Cessis added on the tax after rebate. A surcharge applies above ₹50 lakh (see below). The ₹60,000 Section 87A rebate makes tax up to ₹12 lakh of taxable income effectively zero.
How the slab maths actually works (a worked example)
The single biggest misconception is that crossing a slab taxes your whole income at the higher rate. It does not. Take a salaried person with ₹16,00,000 gross salary under the new regime:
- Gross salary ₹16,00,000 − standard deduction ₹75,000 = taxable income ₹15,25,000.
- First ₹4,00,000 → Nil.
- Next ₹4,00,000 (4L–8L) at 5% = ₹20,000.
- Next ₹4,00,000 (8L–12L) at 10% = ₹40,000.
- Remaining ₹3,25,000 (12L–15.25L) at 15% = ₹48,750.
- Tax before cess = ₹20,000 + ₹40,000 + ₹48,750 = ₹1,08,750.
- Add 4% cess (₹4,350) = ₹1,13,100 total tax.
Because taxable income (₹15.25 lakh) is above ₹12 lakh, the Section 87A rebate does not apply here. Had taxable income been ₹12 lakh or less, the rebate would have wiped the tax out entirely. The calculator above performs this band-by-band computation for both regimes.
Old vs new regime: which one wins, and when
There is no universal answer — it depends entirely on how much you can legitimately deduct. The two regimes differ in slabs, the rebate ceiling, and what you are allowed to subtract:
| Feature | New regime (default) | Old regime (optional) |
|---|---|---|
| Basic exemption | ₹4,00,000 | ₹2,50,000 (below 60) |
| Top rate (30%) starts at | Above ₹24,00,000 | Above ₹10,00,000 |
| Section 87A rebate (max) | ₹60,000 (income up to ₹12L) | ₹12,500 (income up to ₹5L) |
| Standard deduction (salaried) | ₹75,000 | ₹50,000 |
| 80C / 80D / HRA / home-loan interest | Not allowed | Allowed |
| Max surcharge | 25% | 37% |
The practical decision rule comes down to your total deductions in the old regime:
- Few or no deductions (you don't max 80C, pay no rent, have no home loan) → the new regime almost always wins, thanks to wider slabs and the ₹12 lakh rebate.
- Large deductions (full 80C, large HRA, ₹2 lakh home-loan interest, 80D, NPS) → the old regime can win because each rupee of deduction is removed before tax. The more you deduct, the more the old regime pulls ahead.
- The only reliable way to know is to compute both with your real numbers — which is exactly what the calculator above does. A rough break-even often sits around the point where your old-regime deductions exceed roughly ₹3.5–₹4 lakh, but this shifts with income level, so treat it as a starting point, not a rule.
Old-regime deductions worth knowing (limits)
These deductions are available only if you opt for the old regime. They are what make the old regime competitive — the bigger the stack, the more likely the old regime beats the new one.
| Section | What it covers | Typical maximum |
|---|---|---|
| 80C | EPF, PPF, ELSS, life insurance, principal on home loan, etc. | ₹1,50,000 |
| 80CCD(1B) | Extra NPS contribution (over and above 80C) | ₹50,000 |
| 80D | Health insurance (self/family + parents) | up to ₹1,00,000* |
| Section 24(b) | Interest on a home loan (self-occupied) | ₹2,00,000 |
| 10(13A) — HRA | House Rent Allowance exemption | Formula-based (varies) |
| Standard deduction | Salaried / pensioners | ₹50,000 |
*80D depends on age: ₹25,000 for self/spouse/children plus up to ₹50,000 for senior-citizen parents. HRA exemption is the least of (a) actual HRA received, (b) rent paid minus 10% of salary, and (c) 50% of salary in metro cities (40% non-metro). Confirm current limits and eligibility on incometax.gov.in before relying on them.
Questions people actually ask
Is income up to ₹12 lakh really tax-free under the new regime?
For FY 2025-26, a resident individual with taxable income up to ₹12 lakh pays zero tax under the new regime, because the Section 87A rebate (max ₹60,000) cancels the calculated tax. For a salaried person, the ₹75,000 standard deduction means a gross salary up to about ₹12.75 lakh can reach that zero-tax outcome. The rebate is for resident individuals only and does not apply to special-rate income such as capital gains.
What happens if I earn slightly more than ₹12 lakh — do I lose the whole rebate?
No, because of marginal relief. Without it, crossing ₹12 lakh by a small amount would trigger a much larger tax bill. Marginal relief caps the tax just above ₹12 lakh so you never pay more extra tax than the extra income earned. The exact relief tapers off as income rises further past the threshold; the calculator and the official portal both apply it automatically.
Which regime should I choose for FY 2025-26?
It depends on your deductions. If you don't claim much (no big 80C, no rent/HRA, no home loan), the new regime usually gives a lower bill because of wider slabs and the ₹12 lakh rebate. If you legitimately claim large deductions — full 80C, substantial HRA, ₹2 lakh home-loan interest, 80D, NPS — the old regime can win. Run both in the calculator above with your actual figures; that is the only way to be certain for your situation.
Can I still claim 80C and HRA under the new regime?
No. The new regime disallows most common deductions, including 80C investments, 80D health insurance, HRA exemption and home-loan interest on a self-occupied house. The main relief it keeps for salaried taxpayers is the ₹75,000 standard deduction (and the employer's NPS contribution under 80CCD(2)). If those deductions matter to you, model the old regime before deciding.
What is the 4% cess and is it on top of my tax?
Yes. The Health & Education Cess is 4% added on top of your income tax after any rebate (and after surcharge, if applicable). So if your tax after rebate is ₹1,00,000, the cess adds ₹4,000, making the total ₹1,04,000. It applies under both the old and new regimes.
Are these numbers official, and where should I file?
The slabs, rebate and deduction limits here reflect the rules legislated for FY 2025-26 (AY 2026-27), but tax law changes and individual cases vary. Treat this page as an estimate, not advice. File your return on the official Income Tax Department portal at incometax.gov.in, where your salary data is pre-filled from Form 26AS and the AIS, and consult a chartered accountant for anything beyond a simple salary return.