Income Tax Calculator FY 2025-26 – New vs Old Regime

See exactly how much income tax you owe this year – and which regime saves you more

Enter your annual salary, deductions, and the calculator instantly shows your tax under both the new and old tax regimes for FY 2025-26 (AY 2026-27). No guesswork, no spreadsheet – just your numbers, right now.

How to use this income tax calculator

1. Select your income type – salaried or non-salaried (self-employed/business).
2. Enter your gross annual income in rupees (e.g. ₹10,00,000).
3. Add deductions (old regime only) – Section 80C investments, HRA received, home-loan interest (Section 24b), NPS (80CCD), and other claims.
4. Hit Calculate – the tool shows your taxable income, slab-wise tax breakup, and final payable tax under both regimes side by side.
5. Pick the lower number – declare that choice to your employer before the deadline.

Worked example – ₹12 lakh salary

Let's say you earn ₹12,00,000 per year and have the following deductions under the old regime: ₹1,50,000 (80C), ₹20,000 (80D health insurance), and ₹50,000 standard deduction.

Under the new regime (FY 2025-26)

• Gross income: ₹12,00,000
• Standard deduction: ₹75,000
• Taxable income: ₹11,25,000
• Tax on slabs: ₹0 (up to ₹4L) + ₹20,000 (5% on ₹4–8L) + ₹12,500 (10% on ₹8–11.25L) = ₹32,500
• Section 87A rebate: Not applicable (taxable income exceeds ₹12L after standard deduction only if gross is above ₹12.75L – in this case rebate does not apply)
• 4% health & education cess: ₹1,300
• Total tax payable: ₹33,800

Under the old regime (FY 2025-26)

• Gross income: ₹12,00,000
• Standard deduction: ₹50,000
• 80C deduction: ₹1,50,000 | 80D: ₹20,000
• Taxable income: ₹9,80,000
• Tax on slabs: ₹12,500 (5% on ₹2.5–5L) + ₹20,000 (20% on ₹5–6L... wait, old slab: 20% on ₹5–10L portion: 20% × ₹4,80,000 = ₹96,000) = ₹1,08,500
• 4% cess: ₹4,340
• Total tax payable: ₹1,12,840

Result: The new regime saves approximately ₹79,040 for this person. The calculator above does this comparison in seconds for your exact numbers.

How income tax is calculated – plain-language formula

Your tax is applied in slabs – think of it like steps. Each slice of income is taxed at its own rate. You never pay a higher rate on money that falls in a lower slab.

Taxable Income = Gross Income − Standard Deduction − Eligible Deductions
Slab Tax       = Sum of (each slab rate × income in that slab)
Cess           = 4% × Slab Tax
Final Tax      = Slab Tax + Cess − Section 87A Rebate (if applicable)

New regime tax slabs – FY 2025-26 (AY 2026-27)

Key fact: Under the new regime, the Section 87A rebate makes income up to ₹12 lakh effectively tax-free for resident individuals (the rebate wipes out the tax entirely if gross income minus the ₹75,000 standard deduction stays at or below ₹12 lakh).

Old regime tax slabs – FY 2025-26

Under the old regime, the 87A rebate covers individuals with taxable income up to ₹5,00,000 (making them tax-zero as well). A 4% health & education cess applies on top of slab tax in both regimes.

Which regime is better – new or old?

This is the question most salaried Indians ask. The short answer: the new regime suits people with few deductions; the old regime can win if you have large claims under 80C, HRA, and home-loan interest.

• New regime wins when: you invest in instruments that don't attract old-regime deductions, your HRA is low or nil, and you have no home loan.
• Old regime wins when: your 80C is maxed (₹1.5 lakh), you claim significant HRA, and you pay home-loan interest (Section 24b up to ₹2 lakh).
• Use the calculator above to enter your actual deductions – it will show you the exact difference to the rupee.

Key rules and limits for FY 2025-26

• Standard deduction: ₹75,000 (new regime) | ₹50,000 (old regime) – auto-applied for salaried employees and pensioners.
• Section 80C limit: ₹1,50,000 – covers EPF, PPF, ELSS, life insurance premiums, home-loan principal, NSC, and more (old regime only).
• Section 80D (health insurance): ₹25,000 for self/spouse/children; ₹50,000 for senior-citizen parents (old regime only).
• Section 24b (home-loan interest): Up to ₹2,00,000 per year for self-occupied property (old regime only).
• NPS (Section 80CCD(1B)): Additional ₹50,000 over and above the 80C limit (old regime); employer NPS contribution is deductible under both regimes via 80CCD(2).
• Surcharge: Applies on incomes above ₹50 lakh (rates vary: 10%–25%). This calculator shows base tax + cess; check the Income Tax Department portal for surcharge details on very high incomes.
• Senior citizens (60–79 years): Basic exemption limit is ₹3 lakh under the old regime. Super senior citizens (80+) get ₹5 lakh. The new regime applies the same slabs regardless of age.

Practical tips to get the right number

• Use your Form 16 or salary slip for the exact gross salary figure – include all allowances, variable pay, and bonuses.
• Don't double-count deductions. LIC premiums, PPF deposits, and ELSS all share the same ₹1.5 lakh 80C bucket.
• HRA matters. If you live in a rented home and your employer pays HRA, the exemption under the old regime can be significant – enter the HRA received and rent paid separately.
• Switch regime before filing. Salaried employees can choose a regime every year when submitting their investment declaration to HR (Form 12BB). Business owners have fewer switches allowed, so plan carefully.
• The result here is indicative. Capital-gains tax (STCG/LTCG on equity, property), agricultural income, and arrears under Section 89 are not covered by this tool. For complex situations, a chartered accountant or the official e-filing portal should be your next step.

Everything you enter stays on your device. No data is sent to any server – all calculations run entirely in your browser.

For the official tax rates, slab tables, and e-filing, visit the Income Tax Department of India (incometax.gov.in).

Takeaway: Run your numbers in the calculator above, compare both regimes side by side, and head into this tax season knowing exactly where you stand.