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.
What this calculator tells you
Computes both regimes simultaneously with exact FY 2025-26 slabs and the updated ₹75,000 standard deduction, surfacing the precise rupee saving between regimes — detail that generic "which regime is better" articles state qualitatively but never calculate for a specific income.
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.
How it works
The calculator runs two parallel tax computations for FY 2025-26.
New Regime: Your gross salary is reduced by a ₹75,000 standard deduction to arrive at taxable income. If that taxable income is ₹7 lakh or below, Section 87A grants a full rebate and your tax is zero. Above ₹7L, the progressive slabs apply — 5% on income between ₹3L and ₹7L, 10% on ₹7L–₹10L, 15% on ₹10L–₹12L, 20% on ₹12L–₹15L, and 30% on anything above ₹15L. The first ₹3L is always tax-free. A 4% Health and Education cess is added on top of the slab tax.
Old Regime: Your gross salary is reduced by the ₹50,000 standard deduction, your 80C investments (up to ₹1.5L), and any other deductions you enter such as HRA exemption or 80D medical premiums. If taxable income falls to ₹5L or below, Section 87A wipes out the tax completely. Above that, the older slabs apply — 5% from ₹2.5L–₹5L, 20% from ₹5L–₹10L, and 30% above ₹10L — plus 4% cess.
The calculator then subtracts the tax for your chosen regime from your gross income and divides by 12 to give your estimated monthly take-home. The "tax savings" figure is the absolute difference between the two regimes, showing at a glance which regime is more beneficial for your specific income and deduction profile.
Note: surcharge (10% for income ₹50L–₹1Cr, 15% for ₹1Cr–₹2Cr) is not included in this simplified calculator. If your income exceeds ₹50L, add the applicable surcharge on top of the computed tax.
New Regime: taxable income = gross − ₹75,000 standard deduction; 87A rebate zeroes tax if taxable income ≤ ₹7L; slabs: 0% up to ₹3L, 5% ₹3L–₹7L, 10% ₹7L–₹10L, 15% ₹10L–₹12L, 20% ₹12L–₹15L, 30% above ₹15L; + 4% cess. Old Regime: taxable income = gross − ₹50,000 − 80C (max ₹1.5L) − other deductions; 87A rebate if taxable income ≤ ₹5L; slabs: 0% up to ₹2.5L, 5% ₹2.5L–₹5L, 20% ₹5L–₹10L, 30% above ₹10L; + 4% cess.
Worked example
Suppose your annual gross salary is ₹12,00,000 and you invest ₹1,50,000 in 80C instruments with no other deductions.
New Regime: Taxable income = ₹12,00,000 − ₹75,000 = ₹11,25,000. Since taxable income exceeds ₹7L the rebate does not apply. Tax = 0% on ₹3L + 5% on ₹4L + 10% on ₹3L + 15% on ₹1,25,000 = ₹0 + ₹20,000 + ₹30,000 + ₹18,750 = ₹68,750. Add 4% cess: ₹68,750 × 1.04 = ₹71,500.
Old Regime: Taxable income = ₹12,00,000 − ₹50,000 − ₹1,50,000 = ₹10,00,000. Tax = 0% on ₹2.5L + 5% on ₹2.5L + 20% on ₹5L = ₹0 + ₹12,500 + ₹1,00,000 = ₹1,12,500. Add 4% cess: ₹1,12,500 × 1.04 = ₹1,17,000.
The New Regime saves ₹1,17,000 − ₹71,500 = ₹45,500 in this case. Monthly take-home under New Regime = (₹12,00,000 − ₹71,500) ÷ 12 = ₹94,042.
Edge cases & caveats
The Section 87A rebate under the New Regime applies up to a taxable income of ₹7L (after ₹75,000 standard deduction), meaning gross incomes up to ₹7,75,000 can pay zero tax. Under the Old Regime the rebate threshold is ₹5L of taxable income. Surcharge is not modelled here — incomes above ₹50L should account for an additional 10% surcharge on tax. The 80C cap is strictly ₹1.5L regardless of how much you invest. Other deductions like NPS 80CCD(1B) (up to ₹50,000), 80D, and HRA can be entered in the "other deductions" field for Old Regime calculations.
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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