Income Tax Calculator (Old vs New Regime)
Calculate your Indian income tax for FY 2025-26 (AY 2026-27) using the latest Budget 2025 slabs. Compare the old and new regime side by side — including the ₹75,000 standard deduction, Section 87A rebate with marginal relief, surcharge and 4% cess — and instantly see which one saves you more.
✅ The New regime saves you ₹1,63,800
Comparison for FY 2025-26 (AY 2026-27). Figures are indicative — see the disclaimer below.
New regime
Default · FY 2025-26Old regime
With deductionsOld regime vs new regime — what's the difference?
India runs two parallel income-tax systems. The new regime (the default from FY 2025-26) offers lower, wider slabs but removes almost all deductions and exemptions. The old regime keeps higher rates but lets you claim deductions like 80C, 80D and home-loan interest. You can choose whichever results in lower tax.
New regime slabs
- Up to ₹4,00,000 — Nil
- ₹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%
₹75,000 standard deduction (salaried). No 80C/80D. Tax-free up to ₹12,00,000 via 87A.
Old regime slabs
- Up to basic exemption — Nil
- (₹2.5L / ₹3L senior / ₹5L super-senior)
- Exemption – ₹5,00,000 — 5%
- ₹5,00,001 – ₹10,00,000 — 20%
- Above ₹10,00,000 — 30%
₹50,000 standard deduction (salaried). Allows 80C, 80D, 24(b) and more. Tax-free up to ₹5,00,000 via 87A.
When does each regime win?
- New regime usually wins if you claim few deductions, your income is up to roughly ₹12–15 lakh, or you simply want zero paperwork. Income up to ₹12,00,000 is effectively tax-free for the salaried.
- Old regime can win if you have a home loan, maximise 80C (₹1.5L), pay health-insurance premiums (80D) and claim other deductions — together these can lower your tax below the new-regime figure, especially at higher incomes.
Frequently asked questions
Which regime is better for FY 2025-26?
It depends on your deductions. Under the new regime, salaried taxpayers pay zero tax up to ₹12,00,000 of taxable income (after the ₹75,000 standard deduction) thanks to the enhanced Section 87A rebate, and it needs no investment proofs. The old regime can still win if your 80C, 80D, home-loan interest and other deductions are large enough to push your effective tax below the new-regime figure. Enter your numbers above to see the exact comparison.
What is the standard deduction in FY 2025-26?
Salaried and pension taxpayers get a standard deduction of ₹75,000 under the new regime and ₹50,000 under the old regime. It is applied automatically when you select “salaried”. It does not apply to purely non-salary income.
How does the Section 87A rebate and marginal relief work?
In the new regime, if your taxable income is ₹12,00,000 or less, the full tax is rebated, so you pay ₹0. Just above ₹12,00,000, marginal relief caps your tax so you never pay more than the income earned over ₹12,00,000. In the old regime, the rebate is up to ₹12,500, making income up to ₹5,00,000 tax-free. This calculator applies both rules.
Does this include surcharge and cess?
Yes. A 4% health & education cess is added on tax plus surcharge. Surcharge applies on high incomes — 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore, and (old regime only) 37% above ₹5 crore. The new regime caps surcharge at 25%.
Disclaimer: For general guidance only, FY 2025-26 (AY 2026-27). Excludes cess nuances, special-rate incomes (capital gains, lottery), and individual exemptions. Confirm with a qualified CA.