Which tax regime is better for me in FY 2025-26?

New regime is better if your total deductions (80C + HRA + 80D + NPS) are below ₹3.75L. Old regime wins if deductions exceed that. Use this calculator to compare your exact numbers instantly.

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

Yes, under the new regime FY 2025-26. ₹12,75,000 gross salary minus ₹75,000 standard deduction = ₹12,00,000 taxable income. The 87A rebate (up to ₹60,000) makes total tax zero. Above ₹12.75L, you pay full slab tax.

What is the standard deduction in new regime for FY 2025-26?

₹75,000 for salaried employees in FY 2025-26, increased from ₹50,000. It is automatically deducted from gross salary — no receipts needed.

How much tax on ₹10 lakh salary under new regime?

Gross ₹10,00,000 minus ₹75,000 standard deduction = ₹9,25,000 taxable. Tax = ₹0 (up to ₹3L) + ₹20,000 (₹3-7L @ 5%) + ₹22,500 (₹7-9.25L @ 10%) = ₹42,500 + 4% cess = ₹44,200 total.

Income Tax Calculator India 2025-26 — New vs Old Regime

Q: Can I switch tax regime every year?

Salaried employees can switch regime every year by informing their employer. Business owners can switch only once from old to new regime. Choose at the start of the financial year or at the time of filing ITR.

🧾 Income Tax Calculator — FY 2025-26

Income Details

Gross Annual Salary / Income (₹)

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Basic Salary (₹/yr) for HRA & EPF — typically 40–50% of CTC

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Age / Taxpayer Category

Old Regime Deductions (not applicable in new regime)

HRA Received (₹/yr) from salary slip

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Rent Paid (₹/yr) actual rent you pay

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City Type

80C Investments (₹/yr) PPF, ELSS, LIC, EPF — max ₹1.5L

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80D Health Insurance (₹/yr) max ₹25,000 self+family

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NPS 80CCD(1B) (₹/yr) extra ₹50,000 over 80C

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Home Loan Interest 24(b) (₹/yr) max ₹2L self-occupied

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Best Regime Tax Payable

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FY 2025-26 · AY 2026-27

Monthly Take Home

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Effective Tax Rate

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Tax Saved (vs other)

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4% Cess

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Tax Breakdown

Tax Slab Reference

Income Range	Rate	Max Tax

Income Tax — Frequently Asked Questions

Which tax regime is better for FY 2025-26?+

New regime is better if your total deductions (80C + HRA exemption + 80D + NPS) are below ~₹3.75L. If you have a home loan, metro HRA, full 80C and NPS contributions, the old regime often saves more. Use this calculator with your actual numbers to compare instantly.

Is income up to ₹12.75 lakh really tax-free?+

Yes, under the new regime for salaried taxpayers. ₹12,75,000 gross minus ₹75,000 standard deduction = ₹12,00,000 taxable. The 87A rebate (up to ₹60,000) makes the entire tax zero. But if your income is ₹12,76,000, you pay tax on the full amount — there is no marginal relief in the new regime.

What are the new regime tax slabs for FY 2025-26?+

0% up to ₹3L · 5% on ₹3L–₹7L · 10% on ₹7L–₹10L · 15% on ₹10L–₹12L · 20% on ₹12L–₹15L · 30% above ₹15L. Standard deduction ₹75,000. Full rebate under 87A if taxable income ≤ ₹12L (tax zero up to ₹12.75L gross for salaried).

Can I switch tax regime every year?+

Salaried employees can switch once a year by informing their employer at the start of the financial year. Business owners can switch from old to new only once (and can switch back once thereafter). The final choice can also be made at the time of filing ITR.

What deductions are allowed in the new regime?+

Very few. New regime allows: ₹75,000 standard deduction (salaried), employer NPS contribution under 80CCD(2), Agniveer corpus fund. It does NOT allow: 80C, 80D, HRA exemption, home loan interest 24(b), LTA, professional tax deduction. Most common deductions are disallowed.

📈 New Regime Slabs FY 2025-26

Up to ₹3,00,0000%

₹3L – ₹7L5%

₹7L – ₹10L10%

₹10L – ₹12L15%

₹12L – ₹15L20%

Above ₹15L30%

Standard Deduction₹75,000

📋 Old Regime Slabs (General)

Up to ₹2,50,0000%

₹2.5L – ₹5L5%

₹5L – ₹10L20%

Above ₹10L30%

Standard Deduction₹50,000

87A Rebateup to ₹12,500

⚡ Tax at Key Salary Points

₹8L gross₹0 (new)

₹10L gross~₹44,200

₹12.75L gross₹0 (new)

₹15L gross~₹1.12L

₹20L gross~₹2.73L

₹30L gross~₹5.73L

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Income Tax Calculator India FY 2025-26 — New vs Old Tax Regime

Calculate your exact income tax liability for FY 2025-26 (AY 2026-27). The 2025 Budget brought sweeping changes — zero tax up to ₹12,75,000 gross salary under the new regime, revised slabs, and ₹75,000 standard deduction.

New Regime Tax Slabs FY 2025-26

Income Slab	Tax Rate	Max Tax on Slab
Up to ₹3,00,000	Nil	—
₹3,00,001 – ₹7,00,000	5%	₹20,000
₹7,00,001 – ₹10,00,000	10%	₹30,000
₹10,00,001 – ₹12,00,000	15%	₹30,000
₹12,00,001 – ₹15,00,000	20%	₹60,000
Above ₹15,00,000	30%	30% of excess

87A Rebate (New Regime): If taxable income ≤ ₹12,00,000, rebate = full tax (up to ₹60,000). This makes gross salary up to ₹12,75,000 completely tax-free for salaried individuals after the ₹75,000 standard deduction.

Old Regime Tax Slabs FY 2025-26

Category	0% Slab	5%	20%	30%
General (<60)	up to ₹2.5L	₹2.5L–5L	₹5L–10L	above ₹10L
Senior (60–80)	up to ₹3L	₹3L–5L	₹5L–10L	above ₹10L
Super Senior (>80)	up to ₹5L	—	₹5L–10L	above ₹10L

New vs Old Regime: Who Saves More?

Gross Salary	New Regime Tax	Old Regime Tax (with max deductions)	Better
₹8,00,000	₹0	₹0	Equal
₹10,00,000	₹44,200	₹0 (with deductions)	Old regime
₹12,75,000	₹0	₹65,000+	New regime
₹15,00,000	₹1,12,800	₹1,04,000 (with ₹3.75L deductions)	Depends
₹20,00,000	₹2,73,000	₹2,08,000 (with max deductions)	Old regime

What is the 87A rebate and who gets it?

Section 87A provides a rebate that effectively eliminates tax if your taxable income is within a threshold. Under the new regime FY 2025-26: rebate = full tax amount (up to ₹60,000) if taxable income ≤ ₹12,00,000. Under the old regime: rebate = full tax (up to ₹12,500) if taxable ≤ ₹5,00,000. Rebate is for resident individuals only — not HUFs or companies.

Is the new tax regime better for salaried employees?

The new regime is now the default regime for salaried employees. It is better for those with few deductions. If your 80C is fully utilised (₹1.5L), you have HRA exemption, NPS (₹50K), and health insurance (₹25K), that's ₹2.25L+ in deductions. Add standard deduction difference of ₹25K — at ₹2.5L+ total advantage, old regime often saves more above ₹15L income.

How is HRA exemption calculated?

HRA exemption = minimum of: (1) actual HRA received, (2) rent paid minus 10% of basic salary, (3) 50% of basic if metro city / 40% if non-metro. Only the minimum of the three is exempt. If you don't pay rent, the full HRA is taxable. Only available under old regime.

Income Tax Calculator India

Income Tax Calculator India FY 2025-26 — New vs Old Tax Regime

New Regime Tax Slabs FY 2025-26

Old Regime Tax Slabs FY 2025-26

New vs Old Regime: Who Saves More?

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