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Income Tax Calculator

FY 2025-26 (AY 2026-27) — New Regime vs Old Regime comparison

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New Regime vs Old Regime — The Core Difference

India now has two tax regimes. The New Regime offers lower slab rates but no major deductions. The Old Regime has higher slab rates but allows HRA, 80C, 80D, and other deductions that can significantly reduce your tax.

Rule of thumb: Under the New Regime, salaried income up to ₹12.75 lakh is completely tax-free. Above that, the old regime wins only if your total deductions (80C + HRA + 80D + NPS etc.) exceed approximately ₹4.75–5.5 lakh — use the calculator below to find your exact break-even.

FY 2025-26 Tax Slabs

New Regime (default) — same for all age groups

Income Slab New Regime Rate
Up to ₹4,00,0000%
₹4,00,001 – ₹8,00,0005%
₹8,00,001 – ₹12,00,00010%
₹12,00,001 – ₹16,00,00015%
₹16,00,001 – ₹20,00,00020%
₹20,00,001 – ₹24,00,00025%
Above ₹24,00,00030%

Standard deduction ₹75,000 | Rebate u/s 87A: full tax rebate up to ₹60,000 if taxable income ≤ ₹12,00,000 → effectively nil tax up to ₹12.75 lakh gross for salaried employees | 4% cess on tax

Old Regime (optional) — age-wise basic exemption

Income Slab Below 60 yrs Senior Citizen
(60–79 yrs)		 Super Senior
(80+ yrs)
Up to ₹2,50,0000%0%0%
₹2,50,001 – ₹3,00,0005%0%0%
₹3,00,001 – ₹5,00,0005%5%0%
₹5,00,001 – ₹10,00,00020%20%20%
Above ₹10,00,00030%30%30%

Standard deduction ₹50,000 | Rebate u/s 87A up to ₹12,500 (if taxable income ≤ ₹5,00,000) | 4% cess on tax

Compare Your Tax — New vs Old Regime

Salary + any other income before deductions
Affects basic exemption in old regime

Old Regime Deductions (optional)

PF + ELSS + LIC + PPF, max ₹1,50,000
Self: ₹25K, Parents: ₹25K extra
Use our HRA Calculator to find this
NPS 80CCD(1B) ₹50K, home loan interest, LTA, etc.

When Does Old Regime Win? (FY 2025-26)

For income up to ₹12.75 lakh (salaried), the New Regime is zero tax — Old Regime cannot beat that unless your deductions are very large. For incomes above ₹12.75 lakh, the Old Regime wins only if your total deductions (80C ₹1.5L + HRA + 80D + NPS ₹50K + home loan interest, etc.) exceed approximately ₹4.75–5.5 lakh depending on your income slab. Use the calculator above for your exact comparison.

Surcharge & Cess Not Included

This calculator computes base income tax only. A 4% Health & Education Cess is applied on the tax amount. Surcharge applies if income exceeds ₹50 lakh (10–37% depending on regime and income band). Consult a CA for exact liability if income exceeds ₹50 lakh.

Frequently Asked Questions

Use our calculator above for your exact answer. For FY 2025-26: if your gross income is ₹12.75 lakh or below (salaried), the New Regime gives you zero tax — Old Regime almost certainly cannot match that. Above ₹12.75 lakh, old regime is better only if your total deductions (80C + HRA + 80D + NPS + home loan interest) are very high — typically ₹4.75 lakh or more. The New Regime is now the default; switch to Old only with a specific reason.
Salaried employees can switch regimes every year at the time of filing ITR. You can choose a different regime from what you declared to your employer — just pay/claim the difference when filing. However, if you have business income, you can switch to old regime only once, and switching back requires permanently forgoing the old regime (with limited exceptions).
Section 87A provides a full rebate on tax liability if your net taxable income is below a threshold. For FY 2025-26: New Regime — rebate up to ₹60,000 if taxable income ≤ ₹12 lakh (effectively zero tax up to ₹12.75 lakh gross for salaried employees after ₹75,000 standard deduction). Old Regime — rebate up to ₹12,500 if taxable income ≤ ₹5 lakh. This is a rebate, not a deduction — it directly reduces your final tax to zero.
Yes. For FY 2025-26: Standard deduction under New Regime is ₹75,000. Standard deduction under Old Regime remains ₹50,000. This is automatically deducted from your salary income — no investment proof required. Pensioners also get this deduction. The ₹75,000 standard deduction in the New Regime is why salaried employees with gross income up to ₹12.75 lakh pay zero tax (₹12.75L – ₹75K = ₹12L taxable, which is within the 87A rebate limit).