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Guide · Calculators & Tools

Income Tax Calculator 2025-26 New & Old Regime, 87A Rebate

Compute your income tax for FY 2025-26 (AY 2026-27) in seconds. Switch between the new and old regime, add 80C/80D/HRA deductions and see a slab-wise breakdown with the Section 87A rebate applied.

Written by
TaxClue Editorial Desk
Updated
18 August 2026
Reading time
6 min
Questions
14 answered
  • New & old regime
  • 87A rebate ₹12L
  • Salaried & business
Quick Answer

This calculator works out your income tax for FY 2025-26 (AY 2026-27) under both regimes. Under the new regime a salaried person earning up to ₹12.75 lakh pays zero tax (₹75,000 standard deduction + Section 87A rebate up to ₹12 lakh taxable income). Enter your gross income, pick a regime, add deductions if you use the old regime, and the tool shows a slab-wise breakdown with 4% cess.

Tax Breakdown — FY 2025-26

Step by step

How Income Tax Is Calculated for FY 2025-26

  1. 1Gross incomeSalary + other sources + gains
  2. 2Deductions₹75K std (new) / 80C, 80D, HRA (old)
  3. 3Apply slabsSlab-wise rate on taxable income
  4. 487A + cessRebate up to ₹12L, then 4% cess

Under the new regime, after the ₹75,000 standard deduction the slab tax is computed and the Section 87A rebate wipes out the entire tax if taxable income is ₹12 lakh or less. A 4% health & education cess is then added on any remaining tax.

New vs old

New vs Old Regime Tax at Common Income Levels

Estimated income tax (salaried, including standard deduction, excluding surcharge) for comparison. The old-regime column assumes ₹1.5L (80C) + ₹25K (80D) deductions.

Gross SalaryNew Regime TaxOld Regime Tax*Better Regime
₹5,00,000₹0 (87A rebate)₹0 (87A rebate)Equal
₹8,00,000₹20,800₹46,800New
₹10,00,000₹54,080₹78,000New
₹12,00,000₹0 (87A rebate)₹1,12,320New
₹15,00,000₹1,30,000₹1,71,600New
₹20,00,000₹1,92,400₹2,72,480New
₹25,00,000₹3,51,000₹4,29,000New

*Old regime assumes ₹50,000 standard deduction + ₹1,50,000 (80C) + ₹25,000 (80D). All figures include 4% cess. Actual tax varies with your deductions.

When the old regime still wins

The old regime beats the new only when your total deductions (80C + 80D + HRA + home-loan interest under 24b + NPS) exceed roughly ₹3.75 lakh at the ₹15L income level. Below ₹12.75L gross for salaried, the new regime gives zero tax that the old regime cannot match.

FY 2025-26

Income Tax Slabs — New Regime

Taxable Income (₹)Tax RateTax on This Slab
0 – 4,00,0000%₹0
4,00,001 – 8,00,0005%Up to ₹20,000
8,00,001 – 12,00,00010%Up to ₹40,000
12,00,001 – 16,00,00015%Up to ₹60,000
16,00,001 – 20,00,00020%Up to ₹80,000
20,00,001 – 24,00,00025%Up to ₹1,00,000
Above 24,00,00030%30% on excess above ₹24L

Section 87A rebate makes tax nil for taxable income up to ₹12,00,000. Standard deduction ₹75,000 for salaried.

FY 2025-26

Income Tax Slabs — Old Regime

Taxable Income (₹)Tax Rate
0 – 2,50,0000%
2,50,001 – 5,00,0005%
5,00,001 – 10,00,00020%
Above 10,00,00030%

Old regime allows 80C (₹1.5L), 80D, HRA, 24(b) home-loan interest, 80CCD(1B) NPS and more. Standard deduction ₹50,000 for salaried; 87A rebate up to ₹5L taxable income.

Sources
  1. Slabs & rebate: incometax.gov.in
  2. Finance Act 2025 — new regime slabs, ₹75,000 standard deduction, 87A up to ₹12L

Disclaimer: This guide is general information based on the law and notifications in force when it was last updated. It is not professional advice for your case — rates, thresholds and due dates change, so check the current position or speak to our CA team before you act on it.

People also ask

Income Tax Calculator — FAQs

Short, direct answers to the 14 questions readers ask most on this topic.

Under the new regime, tax is nil for taxable income up to ₹12,00,000 (Section 87A rebate). For salaried individuals this means gross salary up to ₹12,75,000 after the ₹75,000 standard deduction. Non-salaried individuals get zero tax up to ₹12,00,000 gross. Under the old regime, zero tax applies only up to ₹5,00,000 taxable income.

Zero under the new regime. After the ₹75,000 standard deduction, taxable income is ₹11,25,000 and slab tax is ₹50,000, which the Section 87A rebate fully cancels — net tax ₹0. Under the old regime, tax on ₹12L gross (only standard deduction) is roughly ₹1,08,000 + 4% cess = ₹1,12,320.

New regime: taxable income after ₹75K standard deduction = ₹19,25,000. Tax = ₹20,000 (4-8L) + ₹40,000 (8-12L) + ₹60,000 (12-16L) + ₹65,000 (16-19.25L) = ₹1,85,000, plus 4% cess = ₹1,92,400. No rebate (income above ₹12L). Old regime with only standard deduction ≈ ₹2,72,480.

For FY 2025-26 the new-regime 87A rebate is up to ₹60,000 and applies when taxable income does not exceed ₹12,00,000. Effectively it eliminates the entire slab tax below that threshold. In the old regime the 87A rebate is ₹12,500 for taxable income up to ₹5,00,000.

Step 1: total your gross income (salary, other sources, gains). Step 2: subtract the standard deduction (₹75K new / ₹50K old) and any old-regime deductions (80C, 80D, HRA). Step 3: apply slab rates to taxable income. Step 4: apply the 87A rebate if eligible. Step 5: add surcharge if applicable. Step 6: add 4% health & education cess on tax plus surcharge.

0-₹4L: 0%; ₹4-8L: 5%; ₹8-12L: 10%; ₹12-16L: 15%; ₹16-20L: 20%; ₹20-24L: 25%; above ₹24L: 30%. A 4% health & education cess applies on the tax. Standard deduction is ₹75,000 for salaried, and 87A rebate makes tax nil up to ₹12L taxable income.

4% on the income tax (plus surcharge, if any). It funds government health and education initiatives and applies under both the new and old regimes after the 87A rebate is applied. If your tax after rebate is zero, the cess is also zero.

The on-page calculator computes slab tax, the 87A rebate and 4% cess. Surcharge applies only at higher incomes — 10% above ₹50L, 15% above ₹1cr, 25% above ₹2cr (new regime caps surcharge at 25%). For high-income cases, our CA team can compute the exact surcharge and marginal relief.

The new regime is better for most taxpayers due to lower slab rates and the ₹12L rebate limit. The old regime wins only if total deductions (80C + 80D + HRA + 24b etc.) exceed roughly ₹3.75L at the ₹15L income level. For incomes below ₹12.75L salaried, the new regime gives zero tax the old regime cannot match.

Yes. The new tax regime is the default. If you want to be taxed under the old regime you must opt in — salaried individuals via Form 10-IEA when filing, and those with business income must file the form within the due date. You can generally switch each year if you have no business income.

No. Most deductions and exemptions — 80C, 80D, HRA, LTA, home-loan interest on self-occupied property — are not available in the new regime. The new regime allows the ₹75,000 standard deduction and employer NPS contribution under 80CCD(2). Use the old regime if your total deductions are large.

FY 2025-26 (financial year) is the year in which you earn the income — 1 April 2025 to 31 March 2026. AY 2026-27 (assessment year) is the following year in which you file the return and the income is assessed. This calculator covers income earned in FY 2025-26, filed in AY 2026-27.

For most individual taxpayers (non-audit) the due date to file the income tax return for AY 2026-27 is 31 July 2026. For taxpayers requiring audit it is later (typically 31 October). Late filing attracts a fee under Section 234F and interest under 234A/234B/234C.

Yes, the calculator is completely free with no sign-up. It gives an estimate for planning. For an exact, filed computation — including capital gains, surcharge, marginal relief and regime selection — TaxClue's CA-led team files your ITR end to end, fully online.