Income Tax Calculator FY 2025-26 (AY 2026-27)
Compare tax liability under Old and New regimes to maximize your take-home salary.
Total income before any deductions.
EPF, PPF, ELSS, LIC, Home Loan Principal, etc.
NPS (80CCD), Health Insurance (80D), HRA, Home Loan Interest, etc.
Slabs & rates: FY 2025-26 (AY 2026-27) · source · verified 2026-06-30
Recommendation
New Regime is better for you
You save ₹1,06,600 in tax by choosing the New Regime.
New Tax Regime
₹0
Old Tax Regime
₹1,06,600
How the Income Tax Calculator works
Reviewed by Dinesh Babu · Last updated July 2026
This calculator compares your income tax under the Old and New regimes for FY 2025-26 (AY 2026-27) so you can pick the one that leaves more money in your pocket. Enter your gross salary and deductions, and it computes taxable income, applies the relevant slab rates, the Section 87A rebate and 4% health and education cess. Slabs are marginal — each rate applies only to the slice of income that falls within that band, not to your whole income.
The New regime is the default from FY 2023-24 onward. It gives a ₹75,000 standard deduction to salaried people and pensioners, and its Section 87A rebate makes tax NIL for taxable income up to ₹12,00,000. Combined with the standard deduction, that means a salaried person earning up to roughly ₹12.75 lakh gross can pay zero tax. The Old regime keeps a smaller ₹50,000 standard deduction and higher slab rates, but lets you claim deductions such as 80C (up to ₹1.5 lakh), 80D health insurance, HRA and home-loan interest under Section 24(b) (up to ₹2 lakh) — so it can still win if your deductions are large.
How tax is computed
Tax = Σ (income in each slab × that slab's rate) − 87A rebate + 4% cess
Slabs are applied marginally. New regime FY 2025-26: 0% up to ₹4L, 5% ₹4-8L, 10% ₹8-12L, 15% ₹12-16L, 20% ₹16-20L, 25% ₹20-24L, 30% above ₹24L.
Old regime vs New regime — how to decide
There is no universally better regime; it depends entirely on how much you can deduct. As a rough rule, if your total Old-regime deductions (80C + 80D + HRA + home-loan interest, etc.) add up to more than roughly ₹3.75-4 lakh, the Old regime often wins at middle-to-high incomes. Below that, the New regime's lower rates and bigger standard deduction usually leave more in hand.
This calculator computes both and recommends the cheaper one for your exact numbers, so you do not have to guess. If you have almost no deductions — common for people who rent informally, have no home loan and do not max out 80C — the New regime is almost always better.
What the calculator does and does not cover
- Covers: marginal slab tax, standard deduction, Section 87A rebate and 4% health and education cess under both regimes.
- Old regime deductions you can enter: 80C (up to ₹1,50,000), 80D health insurance, HRA exemption and home-loan interest under 24(b) (up to ₹2,00,000 for a self-occupied home).
- Not fully modelled: surcharge, which applies on income above ₹50 lakh and rises in bands (10%/15%/25%/37%) — high earners should treat the output as indicative only.
- Always a slab-based estimate. For filing, verify against the Income Tax Department's own calculator or a professional.
| Taxable income | New regime tax | Old regime tax (no deductions) |
|---|---|---|
| ₹8,00,000 | ₹20,000 | ₹72,500 |
| ₹12,00,000 | ₹0 (after 87A rebate) | ₹1,72,500 |
| ₹16,00,000 | ₹1,20,000 | ₹3,12,500 |
| ₹20,00,000 | ₹2,40,000 | ₹4,42,500 |
Salaried, ₹12.75 lakh gross (New regime)
Gross ₹12,75,000 − standard deduction ₹75,000 = ₹12,00,000 taxable. Slab tax works out to ₹60,000 (5% of ₹4L + 10% of ₹4L = ₹20,000 + ₹40,000), but the Section 87A rebate of up to ₹60,000 wipes it out entirely. Final tax: ₹0. This is why ₹12.75 lakh is the popular zero-tax figure for salaried people.
₹16 lakh taxable (New regime)
Marginal slabs: 0% on first ₹4L = ₹0; 5% on ₹4-8L = ₹20,000; 10% on ₹8-12L = ₹40,000; 15% on ₹12-16L = ₹60,000. Total ₹1,20,000. No 87A rebate here (income above ₹12L). Add 4% cess (₹4,800) = ₹1,24,800.
Old vs New at ₹15 lakh with ₹2 lakh deductions
New regime: ₹15,00,000 − ₹75,000 = ₹14,25,000 taxable, tax about ₹93,750 + cess. Old regime: ₹15,00,000 − ₹50,000 standard − ₹1,50,000 (80C) = ₹13,00,000 taxable, tax ₹2,02,500 + cess. Here the New regime wins clearly unless your Old-regime deductions are much larger (HRA, home-loan interest, 80D on top of 80C).
Common mistakes to avoid
- Applying a single slab rate to your whole income. Slabs are marginal — a ₹16 lakh earner does not pay 20% on all ₹16 lakh, only on the ₹12-16L band.
- Assuming the ₹12 lakh zero-tax figure includes the standard deduction. The ₹12 lakh is taxable income; salaried people get ₹75,000 on top, so the gross figure is about ₹12.75 lakh.
- Forgetting the 4% cess, which applies on the tax amount under both regimes.
- Claiming HRA or 80C deductions under the New regime — most of these are not allowed there.
- Ignoring surcharge if your income is above ₹50 lakh; the real liability will be higher than a plain slab calculation.
Frequently asked questions
Is income up to ₹12 lakh really tax-free under the new regime?+
Yes. For FY 2025-26, the Section 87A rebate (up to ₹60,000) makes tax zero for taxable income up to ₹12 lakh under the new regime. For salaried people, the ₹75,000 standard deduction pushes the gross figure to about ₹12.75 lakh.
Which regime should I choose — old or new?+
It depends on your deductions. If you claim large deductions (80C, home-loan interest, HRA, 80D), the old regime can win. With few deductions, the new regime's lower rates and bigger standard deduction usually leave more in hand. This calculator shows both and recommends the cheaper one for your numbers.
What are the new regime slabs for FY 2025-26?+
Nil up to ₹4 lakh; 5% on ₹4-8 lakh; 10% on ₹8-12 lakh; 15% on ₹12-16 lakh; 20% on ₹16-20 lakh; 25% on ₹20-24 lakh; and 30% above ₹24 lakh. Rates are marginal — each applies only to income within that band.
What is the standard deduction for FY 2025-26?+
₹75,000 under the new regime and ₹50,000 under the old regime, available to salaried individuals and pensioners.
What is the health and education cess?+
A 4% cess is added on top of your income tax under both regimes. This calculator includes it in the total.
Does this calculator include surcharge for high incomes?+
It focuses on the common slab, rebate and cess calculation. Surcharge applies above ₹50 lakh of income (in bands from 10% up to 37%) and changes the final figure — treat the result as an estimate and consult a professional for high incomes.
If I earn ₹12.1 lakh taxable, do I pay tax on the whole amount?+
The 87A rebate is lost once taxable income crosses ₹12 lakh, so you pay slab tax — but a marginal-relief provision limits the jump so you never pay more extra tax than the income above ₹12 lakh. Use the calculator for your exact figure and verify with a professional.
Are these results exact enough to file my return?+
They are a reliable estimate for planning and comparing regimes, but tax involves many personal specifics. Verify against the Income Tax Department's calculator or a tax professional before filing.