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Income Tax Calculator 2025-26 (AY 2026-27)

Updated: 3 June 2026  |  FY 2025-26  |  New & Old Regime  |  87A Rebate Included

For FY 2025-26 (AY 2026-27), under the new tax regime slabs are: 0–₹4L: 0%; ₹4–8L: 5%; ₹8–12L: 10%; ₹12–16L: 15%; ₹16–20L: 20%; ₹20–24L: 25%; ₹24L+: 30%. Section 87A rebate eliminates tax for taxable income up to ₹12L. With ₹75K standard deduction, salaried individuals earning up to ₹12.75L pay zero tax. Under the old regime: 0–₹2.5L: 0%; ₹2.5–5L: 5%; ₹5–10L: 20%; ₹10L+: 30%; rebate up to ₹5L taxable income; standard deduction ₹50K; 80C/80D/HRA deductions available.
₹12.75L
Gross salary up to ₹12.75 lakh = ₹0 income tax in new regime for FY 2025-26.
₹75,000 standard deduction + ₹12,00,000 Section 87A rebate limit. Non-salaried zero-tax limit = ₹12,00,000.

Calculate Your Tax — FY 2025-26

Tax Breakdown — FY 2025-26

New vs Old Regime Tax at Common Income Levels — FY 2025-26

The table below shows estimated income tax (salaried, including standard deduction, excluding surcharge) for comparison. Old regime assumes deductions of ₹1.5L (80C) + ₹25K (80D) = ₹1.75L.

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 (incl. cess) ₹46,800 (incl. cess) New Regime
₹10,00,000 ₹54,080 (incl. cess) ₹78,000 (incl. cess) New Regime
₹12,00,000 ₹0 (87A rebate) ₹1,12,320 (incl. cess) New Regime
₹15,00,000 ₹1,30,000 (incl. cess) ₹1,71,600 (incl. cess) New Regime
₹20,00,000 ₹1,92,400 (incl. cess) ₹2,72,480 (incl. cess) New Regime
₹25,00,000 ₹3,51,000 (incl. cess) ₹4,29,000 (incl. cess) New Regime

*Old regime assumes ₹50,000 standard deduction + ₹1,50,000 (80C) + ₹25,000 (80D) = ₹2,25,000 total deductions. Actual tax may vary based on your deductions.

Income Tax Slabs FY 2025-26 — New Regime

Taxable Income (₹) Tax Rate Tax 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

Income Tax Slabs FY 2025-26 — 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 also allows deductions: Section 80C (up to ₹1.5L), 80D (health insurance), HRA, 24(b) home loan interest, 80CCD(1B) NPS, and others. Standard deduction = ₹50,000 for salaried.

Frequently Asked Questions

What is the income tax on ₹12 lakh salary in 2025-26?
For FY 2025-26 (AY 2026-27) under the new regime: a salaried individual with gross salary of ₹12,00,000 pays ZERO income tax. After the ₹75,000 standard deduction, taxable income = ₹11,25,000. Tax computed on slabs = ₹50,000. Section 87A rebate (up to ₹12L taxable income) wipes out the full ₹50,000 tax. Net tax = ₹0. Under the old regime, tax on ₹12L gross salary (with only standard deduction) ≈ ₹1,08,000 + 4% cess = ₹1,12,320.
How do you calculate income tax step by step for FY 2025-26?
Step 1: Compute gross total income (salary + other sources + capital gains etc.). Step 2: Deduct standard deduction (₹75K new / ₹50K old) and other deductions (80C, 80D etc. in old regime). Step 3: Apply slab rates to the net taxable income. New regime slabs: 0–4L = 0%, 4–8L = 5%, 8–12L = 10%, 12–16L = 15%, 16–20L = 20%, 20–24L = 25%, 24L+ = 30%. Step 4: Apply Section 87A rebate — if taxable income ≤ ₹12L, rebate = full tax (new regime). Step 5: Add surcharge if applicable. Step 6: Add 4% health and education cess on (tax + surcharge).
New vs old tax regime — which saves more tax in 2025-26?
The new regime is better for most taxpayers in 2025-26 due to lower slab rates and higher rebate limit (₹12L). The old regime is better only if your total deductions (80C + 80D + HRA + 24b etc.) exceed approximately ₹3.75L (for ₹15L income bracket). For incomes below ₹12.75L (salaried), new regime gives zero tax — the old regime cannot match this. Use our calculator to compare at your exact income and deduction levels.
What is the income tax on ₹20 lakh salary in 2025-26?
New regime (FY 2025-26): Taxable income after ₹75K standard deduction = ₹19,25,000. Tax = ₹0 (0–4L) + ₹20,000 (4–8L at 5%) + ₹40,000 (8–12L at 10%) + ₹60,000 (12–16L at 15%) + ₹65,000 (16–19.25L at 20%) = ₹1,85,000. No rebate (income > ₹12L). Plus 4% cess = ₹7,400. Total = ₹1,92,400. Old regime (with only standard deduction): roughly ₹2,62,000 + cess = ₹2,72,480. New regime saves significantly more at this income level.
Up to how much income is zero tax in FY 2025-26?
In FY 2025-26 under the new tax regime: zero tax for taxable income up to ₹12,00,000 (Section 87A rebate). For salaried individuals, this translates to gross salary up to ₹12,75,000 (after ₹75,000 standard deduction). Non-salaried individuals: up to ₹12,00,000 gross income. Under the old regime, zero tax only applies up to ₹5,00,000 taxable income (87A rebate of ₹12,500). For most taxpayers, the new regime zero-tax limit of ₹12L/₹12.75L is far more beneficial.

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