New regime: ₹75,000 standard deduction. No 80C/80D/HRA deductions. Effective from FY 2025-26 as default.
| Income Slab | Rate | Note |
|---|---|---|
| Up to ₹4 Lakh | 0% | Exempt |
| ₹4L – ₹8L | 5% | |
| ₹8L – ₹12L | 10% | 87A rebate makes ≤₹12L tax-free |
| ₹12L – ₹16L | 15% | |
| ₹16L – ₹20L | 20% | |
| ₹20L – ₹24L | 25% | |
| Above ₹24L | 30% | + 4% cess + surcharge if >₹50L |
Income Tax Calculator FY 2025-26 — Old vs New Regime | Free Online
How to Use the Income Tax Calculator
Enter your annual gross salary and age. The calculator instantly shows tax liability under both regimes. For Old Regime, enter your deductions (80C, 80D, HRA, home loan interest) to get an accurate comparison. The savings box tells you which regime saves more.
New Tax Regime Slabs FY 2025-26
Under the new regime (default from FY 2023-24), a standard deduction of ₹75,000 applies to salaried individuals. After deduction, income up to ₹4 lakh is taxed at 0%, ₹4L–₹8L at 5%, ₹8L–₹12L at 10%, and so on. The Section 87A rebate of ₹60,000 effectively makes income up to ₹12 lakh (₹12.75L after standard deduction) completely tax-free.
Common Use Cases
- Deciding between Old and New tax regime before filing ITR
- Estimating advance tax liability during the financial year
- Planning salary structure with HR to maximise tax efficiency
- Checking if ₹12.75 lakh zero-tax threshold applies to your income
Frequently Asked Questions
Q: Which is better — New Regime or Old Regime?
A: The new regime is generally better if your deductions are low. If your Section 80C + 80D + HRA + home loan interest deductions exceed roughly ₹3.75 lakh (for a salary of ₹12L–₹15L), the old regime may save more tax. Use this calculator to compare both for your exact income and deductions.
Q: What is the Section 87A rebate in FY 2025-26?
A: Under the new tax regime, if your taxable income (after standard deduction) is up to ₹12 lakh, you get a Section 87A rebate equal to your entire tax liability (up to ₹60,000). This effectively makes income up to ₹12 lakh tax-free under the new regime. The ₹75,000 standard deduction pushes the effective zero-tax threshold to ₹12.75 lakh.
Q: What is the standard deduction for FY 2025-26?
A: The standard deduction is ₹75,000 under the new tax regime and ₹50,000 under the old tax regime for salaried employees and pensioners. It is automatically applied — no documentation is needed.
Q: Is income up to ₹12.75 lakh really tax-free?
A: Yes, under the new tax regime for FY 2025-26. The ₹75,000 standard deduction reduces gross salary by ₹75,000, and the Section 87A rebate waives tax on the remaining income up to ₹12 lakh. So a gross salary of ₹12,75,000 results in zero tax liability.
Q: Can I switch between Old and New Regime every year?
A: Salaried employees (not having business income) can switch between regimes every year when filing their ITR. Business owners and professionals who have opted out of the new regime cannot switch back easily. It is advisable to calculate your tax under both regimes each year before filing.
Last updated: June 2026 · Tax slabs as per Budget 2025 (FY 2025-26, AY 2026-27) · For informational purposes only.