Income Tax Calculator
India introduced a revamped New Tax Regime in FY 2023-24 and made it the default from FY 2024-25 onwards. For FY 2025-26 the new regime offers a higher standard deduction of ₹75,000, a generous Section 87A rebate that eliminates tax entirely for taxable incomes up to ₹7 lakh, and straightforward slabs without the need to track investments. The Old Regime retains the ₹50,000 standard deduction, 80C deductions up to ₹1.5L, and other exemptions like HRA and 80D — making it still worth choosing if you have large deductions. This calculator computes your tax under both regimes simultaneously, highlights which saves more, and shows your monthly take-home pay.
- New regime tax
- Old regime tax
- New regime tax (incl. cess)
- $23,400.00
- Old regime tax (incl. cess)
- $33,800.00
- Tax savings (better regime)
- $10,400.00
- Monthly take-home (selected regime)
- $64,716.67
New Regime saves you ₹10,400 more than Old Regime for FY 2025-26.
Frequently asked questions
Which tax regime is better for me in FY 2025-26?+
It depends on your deductions. If your total deductions (80C + HRA + 80D + NPS, etc.) exceed roughly ₹3.75L for incomes around ₹15L+, the Old Regime can be cheaper. For most salaried individuals with limited deductions, the New Regime — with its higher ₹75,000 standard deduction and wider zero-tax band up to ₹7L taxable income — now saves more tax.
What is the income tax slab for FY 2025-26 under the New Regime?+
Under the New Regime for FY 2025-26: 0% up to ₹3L, 5% from ₹3L to ₹7L, 10% from ₹7L to ₹10L, 15% from ₹10L to ₹12L, 20% from ₹12L to ₹15L, and 30% above ₹15L. A ₹75,000 standard deduction applies and incomes with taxable income up to ₹7L pay zero tax due to Section 87A.
Is income up to ₹12 lakh tax-free in FY 2025-26?+
Under the New Regime, income up to ₹7,75,000 gross (₹7L taxable after ₹75,000 standard deduction) is effectively tax-free due to the Section 87A rebate. Income above ₹7,75,000 is taxable from the first slab — the ₹12L figure often quoted refers to proposed future changes, not FY 2025-26 rules as implemented.
What is standard deduction for salaried employees in FY 2025-26?+
₹75,000 under the New Regime and ₹50,000 under the Old Regime. This deduction is automatically available to all salaried employees and pensioners without submitting any proof.
What is Section 87A rebate and who can claim it?+
Section 87A provides a full tax rebate to resident individuals whose net taxable income does not exceed a threshold — ₹7L under the New Regime and ₹5L under the Old Regime for FY 2025-26. If your taxable income is at or below this limit, your entire income tax liability becomes zero before cess.
Can I switch between Old and New Regime every year?+
Salaried employees with no business income can switch freely between regimes each financial year when filing their return. Business owners can switch to the Old Regime only once; after that they are locked in unless they permanently give up business income.
Does HRA exemption apply in the New Regime?+
No. HRA exemption, LTA, professional tax deduction, and most Chapter VI-A deductions (80C, 80D, 80E, etc.) are not available under the New Regime. Only the standard deduction of ₹75,000 and a few specific deductions such as employer NPS contributions under 80CCD(2) are allowed.
How is Health and Education cess calculated?+
A 4% Health and Education cess is levied on the total income tax (after any rebate but before surcharge). For example, a tax of ₹1,00,000 attracts a cess of ₹4,000, making the total payable ₹1,04,000. Cess is not deductible as a business expense and is the same under both regimes.
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Disclaimer: This calculator is for educational and informational purposes only and provides estimates, not financial advice. Interest rates, taxes, fees, and local rules vary and change over time. Confirm figures with a qualified professional before making any financial decision.
Last reviewed: 2026-06-23