Income Tax Calculator
FY 2025-26 (AY 2026-27) — Compare New vs Old regime, apply all deductions, get exact tax liability.
Your Details
Tax Regime
Income
New Regime Slabs (FY 2025-26)
| Income Range | Rate |
|---|---|
| Up to ₹3L | Nil |
| ₹3L – ₹7L | 5% |
| ₹7L – ₹10L | 10% |
| ₹10L – ₹12L | 15% |
| ₹12L – ₹15L | 20% |
| Above ₹15L | 30% |
Old Regime Slabs (Below 60)
| Income Range | Rate |
|---|---|
| Up to ₹2.5L | Nil |
| ₹2.5L – ₹5L | 5% |
| ₹5L – ₹10L | 20% |
| Above ₹10L | 30% |
Income Tax in India — New vs Old Regime (FY 2025-26)
From FY 2020-21, India has two income tax regimes. The New Regime is the default since FY 2023-24 with lower slab rates but no deductions. The Old Regime has higher rates but allows deductions like 80C, 80D, HRA, and home loan interest.
Key Changes in Budget 2025 (New Regime)
- Basic exemption increased to ₹4 lakh (from ₹3L).
- Rebate under Section 87A: Zero tax up to ₹7 lakh net taxable income (up from ₹7L in FY24).
- Standard deduction: ₹75,000 for salaried employees (up from ₹50,000).
When Is Old Regime Better?
Old regime is beneficial when your total deductions (80C + 80D + HRA + home loan interest + standard deduction) exceed the tax saving from new regime's lower slabs. This is typically when:
- You fully utilise 80C (₹1.5L), 80CCD(1B) NPS (₹50K), and 80D (₹25K+ for self+parents)
- You pay rent and claim HRA exemption
- You have a home loan with significant interest deduction
- Income is above ₹12.75L (after standard deduction) — old regime's 20%/30% slabs mean large deductions can offset the rate difference
How to Calculate HRA Exemption
HRA exemption is the minimum of: (1) Actual HRA received, (2) 50% of Basic+DA for metro / 40% for non-metro, (3) Rent paid minus 10% of Basic+DA. Use all three and take the lowest figure as the HRA exemption.
FAQ
What is the standard deduction in the new regime for FY 2025-26?
₹75,000 for salaried employees. This is automatically applied when calculating taxable income under the new regime.
Is there a cess on income tax?
Yes. A Health and Education Cess of 4% is levied on the income tax + surcharge amount. This is already included in this calculator's output.
When is surcharge applicable?
Surcharge applies when income exceeds ₹50 lakh: 10% surcharge on tax for ₹50L–₹1Cr income; 15% for ₹1Cr–₹2Cr; 25% for ₹2Cr–₹5Cr; 37% above ₹5Cr (capped at 25% for new regime from FY24).
Can I switch between new and old regime every year?
Salaried individuals can switch between regimes every year when filing ITR. Business/profession income earners can switch only once and cannot revert to old regime after switching back.