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
How Income Tax Is Calculated for FY 2025-26
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 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 Salary | New Regime Tax | Old Regime Tax* | Better Regime |
|---|---|---|---|
| ₹5,00,000 | ₹0 (87A rebate) | ₹0 (87A rebate) | Equal |
| ₹8,00,000 | ₹20,800 | ₹46,800 | New |
| ₹10,00,000 | ₹54,080 | ₹78,000 | New |
| ₹12,00,000 | ₹0 (87A rebate) | ₹1,12,320 | New |
| ₹15,00,000 | ₹1,30,000 | ₹1,71,600 | New |
| ₹20,00,000 | ₹1,92,400 | ₹2,72,480 | New |
| ₹25,00,000 | ₹3,51,000 | ₹4,29,000 | New |
*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.
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.
Income Tax Slabs — New Regime
| Taxable Income (₹) | Tax Rate | Tax on This Slab |
|---|---|---|
| 0 – 4,00,000 | 0% | ₹0 |
| 4,00,001 – 8,00,000 | 5% | Up to ₹20,000 |
| 8,00,001 – 12,00,000 | 10% | Up to ₹40,000 |
| 12,00,001 – 16,00,000 | 15% | Up to ₹60,000 |
| 16,00,001 – 20,00,000 | 20% | Up to ₹80,000 |
| 20,00,001 – 24,00,000 | 25% | Up to ₹1,00,000 |
| Above 24,00,000 | 30% | 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.
Income Tax Slabs — Old Regime
| Taxable Income (₹) | Tax Rate |
|---|---|
| 0 – 2,50,000 | 0% |
| 2,50,001 – 5,00,000 | 5% |
| 5,00,001 – 10,00,000 | 20% |
| Above 10,00,000 | 30% |
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.
Income Tax Calculator — FAQs
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