India finance

Income Tax Calculator FY 2025-26: New vs Old Regime

Indian income tax for FY 2025-26 (AY 2026-27) under the new and old regimes side by side, with 87A rebate, marginal relief, surcharge, cess and every slab shown.

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Quick answer

For FY 2025-26 a salary of up to ₹12,75,000 pays no tax in the new regime: the ₹75,000 standard deduction brings it to ₹12 lakh and the 87A rebate cancels the ₹60,000 slab tax. A ₹15 lakh salary pays ₹97,500 in the new regime; the old regime only wins at that salary if your deductions and exemptions add up to about ₹5.44 lakh or more.

Your income, FY 2025-26

Annual gross salary or pension

Before any exemption, including HRA and allowances.

Other income

Interest, rent and other income taxed at slab rates.

Your age during the year

Changes the old regime's tax-free limit and 80D cap only.

Old regime deductions and exemptions

These only count in the old regime. The new regime ignores all of them and gives a larger standard deduction (₹75,000 instead of ₹50,000) and lower slab rates instead.

HRA exemption

The exempt part of your HRA, not the whole HRA.

Section 80C

PF, PPF, ELSS, life cover, home loan principal. Capped at ₹1,50,000.

80D health insurance (self and family)

Capped at ₹25,000 for your age.

80D health insurance (parents)

Capped at ₹25,000.

Are your parents senior citizens?

Home loan interest, 24(b)

Self-occupied home. Capped at ₹2,00,000.

NPS, 80CCD(1B)

Your own extra NPS contribution. Capped at ₹50,000.

Other deductions

80E, 80G, 80TTA and similar, as you are entitled to claim them.

Not sure what your HRA exemption is? Work it out with the HRA exemption calculator and enter the exempt amount here.

Better for you

New regime saves you ₹1,05,300 a year

₹1.05 L less tax than the other regime.

New regime

Lower tax

Gross income: ₹15,00,000
Standard deduction: −₹75,000
Taxable income: ₹14,25,000
Tax on slabs: ₹93,750
87A rebate: ₹0
Surcharge: ₹0
Health and education cess (4%): ₹3,750
Total tax: ₹97,500
Effective rate on gross income: 6.5%
Per month: ₹8,125

Old regime

Gross income: ₹15,00,000
Standard deduction: −₹50,000
HRA and home loan interest: ₹0
Chapter VI-A deductions: −₹1,75,000
Taxable income: ₹12,75,000
Tax on slabs: ₹1,95,000
87A rebate: ₹0
Surcharge: ₹0
Health and education cess (4%): ₹7,800
Total tax: ₹2,02,800
Effective rate on gross income: 13.52%
Per month: ₹16,900

Slab by slab

Each slab taxes only the part of your taxable income that falls inside it.

New regime: tax on ₹14,25,000 (8 rows)

Slab	Rate	Income in slab	Tax
Up to ₹4 L	0%	₹4,00,000	₹0
₹4 L to ₹8 L	5%	₹4,00,000	₹20,000
₹8 L to ₹12 L	10%	₹4,00,000	₹40,000
₹12 L to ₹16 L	15%	₹2,25,000	₹33,750
₹16 L to ₹20 L	20%	₹0	₹0
₹20 L to ₹24 L	25%	₹0	₹0
Above ₹24 L	30%	₹0	₹0
Total		₹14,25,000	₹93,750

Old regime: tax on ₹12,75,000 (5 rows)

Slab	Rate	Income in slab	Tax
Up to ₹2.5 L	0%	₹2,50,000	₹0
₹2.5 L to ₹5 L	5%	₹2,50,000	₹12,500
₹5 L to ₹10 L	20%	₹5,00,000	₹1,00,000
Above ₹10 L	30%	₹2,75,000	₹82,500
Total		₹12,75,000	₹1,95,000

Old regime deductions, claimed and allowed (7 rows)

Item	You entered	Allowed
HRA exemption, section 10(13A)	₹0	₹0
Home loan interest, section 24(b)	₹0	₹0
80C (PF, ELSS, life cover, principal)	₹1,50,000	₹1,50,000
80D for self and family	₹25,000	₹25,000
80D for parents	₹0	₹0
80CCD(1B) NPS	₹0	₹0
Other Chapter VI-A	₹0	₹0

Rules for FY 2025-26 (AY 2026-27) under the Finance Act, 2025, for a resident individual, last verified 13 October 2026 against incometax.gov.in. Income taxed at special rates, such as capital gains, is not included; it does not get the 87A rebate. Employer NPS contributions under 80CCD(2), allowed in both regimes, are not modelled. Taxable income and tax are rounded to the nearest ₹10 as the Act requires. An estimate to help you choose, not tax advice.

Formulas last verified 2026-10-10. Results are estimates, not financial advice. How we calculate.

How the tax is worked out

Gross income: salary or pension plus other income taxed at slab rates.
Standard deduction on salary: ₹75,000 in the new regime, ₹50,000 in the old.
Old regime only: subtract the HRA exemption, home loan interest on a self-occupied home (up to ₹2 lakh) and Chapter VI-A deductions (80C up to ₹1.5 lakh, 80D, NPS 80CCD(1B) up to ₹50,000, and others).
Slab tax on what is left, rounded to the nearest ₹10.
87A rebate: up to ₹60,000 if taxable income is at most ₹12 lakh (new regime, with marginal relief just above), up to ₹12,500 if it is at most ₹5 lakh (old regime).
Surcharge on high incomes, then 4% cess on tax plus surcharge.

New regime slabs, FY 2025-26

Taxable income	Rate
Up to ₹4,00,000	Nil
₹4,00,001 to ₹8,00,000	5%
₹8,00,001 to ₹12,00,000	10%
₹12,00,001 to ₹16,00,000	15%
₹16,00,001 to ₹20,00,000	20%
₹20,00,001 to ₹24,00,000	25%
Above ₹24,00,000	30%

The same slabs apply at every age. The new regime is the default unless you opt out.

Old regime slabs, FY 2025-26

Taxable income	Below 60	60 to 79	80 and above
Up to ₹2,50,000	Nil	Nil	Nil
₹2,50,001 to ₹3,00,000	5%	Nil	Nil
₹3,00,001 to ₹5,00,000	5%	5%	Nil
₹5,00,001 to ₹10,00,000	20%	20%	20%
Above ₹10,00,000	30%	30%	30%

Worked examples

Case	Taxable income	Tax payable
₹12,75,000 salary, new regime	₹12,00,000	₹0 (₹60,000 slab tax, fully rebated)
₹12,85,000 salary, new regime	₹12,10,000	₹10,400 (marginal relief caps tax at ₹10,000, plus cess)
₹15,00,000 salary, new regime	₹14,25,000	₹97,500 (₹93,750 + 4% cess)
₹15,00,000 salary, old regime, no deductions	₹14,50,000	₹2,57,400
₹15,00,000 salary, old regime with ₹1.2 lakh HRA exemption, ₹1.5 lakh 80C, ₹25,000 80D, ₹2 lakh home loan interest and ₹50,000 NPS	₹9,05,000	₹97,240, ₹260 less than the new regime

The last row is close to the break-even point: at a ₹15 lakh salary the two regimes cost the same once old-regime deductions and exemptions total about ₹5.44 lakh. Below that the new regime wins; above it the old one does.

Where the old regime can still win

Renters with a large HRA in a high-rent city. Work out the exempt part with the HRA exemption calculator and enter it above.
Home loan borrowers claiming the full ₹2 lakh of interest on a self-occupied home, plus principal under 80C.
People who already fill 80C through PF, PPF or ELSS, and pay health insurance for themselves and their parents.

Sources and verification

Rates and limits are for FY 2025-26 (AY 2026-27) under the Finance Act, 2025, and were last checked on 13 October 2026 against the Income Tax Department's published tax rates and deduction limits on incometax.gov.in: the slabs for both regimes, the senior and super senior exemptions, the 87A rebate limits, the surcharge rates and the 4% cess. The ₹75,000 and ₹50,000 standard deductions are from the department's deduction limits for AY 2026-27. The 87A marginal relief and the surcharge marginal relief are computed as the Act describes them. This is an estimate to help you choose a regime, not tax advice; check the figures against Form 16 and the e-filing utility before you file.

Frequently asked questions

Is income up to ₹12 lakh really tax-free in FY 2025-26?

Under the new regime, yes, for a resident individual whose income is taxed at normal slab rates. The slab tax on ₹12 lakh is ₹60,000 and the section 87A rebate cancels up to ₹60,000. A salaried person also gets the ₹75,000 standard deduction first, so a salary of up to ₹12,75,000 pays nothing. Capital gains taxed at special rates do not get the rebate.

What happens if my income is just above ₹12 lakh?

Marginal relief applies: your tax cannot be more than the amount by which your taxable income exceeds ₹12 lakh. At ₹12,10,000 the slab tax is ₹61,500, but you pay only ₹10,000 plus 4% cess. The relief fades out at about ₹12,70,588 of taxable income, where normal tax becomes the smaller figure.

Which regime is better for me?

It depends almost entirely on how much you can deduct. The new regime has lower rates and a bigger standard deduction but ignores HRA, 80C, 80D, home loan interest and most other deductions. On a ₹15 lakh salary the old regime only wins once your deductions and exemptions reach about ₹5.44 lakh. Enter your own figures above: the calculator works out both and tells you which is lower and by how much.

Is the new regime the default?

Yes. Since FY 2023-24 the new regime applies unless you opt out. Salaried people can choose the old regime each year when filing the return. People with business or professional income cannot switch freely every year, so check the numbers carefully before opting out.

How are surcharge and cess worked out?

Surcharge is a percentage of the tax itself: 10% above ₹50 lakh of income, 15% above ₹1 crore, 25% above ₹2 crore, and 37% above ₹5 crore in the old regime only (the new regime stops at 25%). Marginal relief stops the surcharge from costing more than the income above each threshold. A 4% health and education cess is then added on tax plus surcharge in both regimes.

What is not included in this calculator?

Income taxed at special rates, such as short and long-term capital gains on shares, lottery winnings and crypto gains, which have their own rates and do not get the 87A rebate. Also the employer's NPS contribution under 80CCD(2), losses from let-out property and business income. For those, use the official tax calculator on incometax.gov.in or ask a tax professional.

Does this work for FY 2026-27?

This page uses the FY 2025-26 (AY 2026-27) rules from the Finance Act, 2025, which are the ones for returns filed in 2026. Reports of the February 2026 Budget say the slabs, the ₹75,000 standard deduction and the ₹60,000 rebate were kept for FY 2026-27, the first year under the Income-tax Act, 2025, but we have not yet checked that against the official text, so treat FY 2026-27 results as provisional.