Income tax slabs under the new regime (FY 2025-26 onwards)
| Taxable income | Tax 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% |
Under the new regime, salaried people get a standard deduction of ₹75,000. A rebate under Section 87A makes tax zero if your taxable income is up to ₹12 lakh. This means a salaried person with income up to ₹12.75 lakh pays no tax.
Income tax slabs under the old regime
| Taxable income | Below 60 years | 60 to 80 years | Above 80 years |
|---|---|---|---|
| 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% |
The old regime allows deductions such as Section 80C (₹1.5 lakh), 80D (health insurance), HRA, home loan interest and a standard deduction of ₹50,000. Rebate under 87A is available if taxable income is up to ₹5 lakh.
How to use the income tax calculator
- Select the assessment year and your age category.
- Income: enter your gross salary, income from other sources, interest income, rental income and home loan interest paid.
- Deductions: enter your investments under 80C, NPS under 80CCD(1B), medical insurance under 80D, donations under 80G, education loan interest under 80E and savings interest under 80TTA/TTB. These apply only in the old regime.
- HRA exemption: enter your basic salary, DA, HRA received, rent paid and whether you live in a metro city.
- Click Calculate to see the total tax under the old regime and the new regime, including cess and surcharge. The calculator also tells you how much more you can save by using the full 80C limit.
New regime vs old regime: which should you choose?
The new regime has lower tax rates but very few deductions. The old regime has higher rates but lets you claim many deductions. As a simple rule, if your total deductions (80C, 80D, HRA, home loan interest etc.) are more than about ₹3.75 lakh to ₹4 lakh, the old regime may be better. Otherwise the new regime usually gives lower tax. Use the calculator to compare both with your actual numbers.
Important notes
- Standard deduction: ₹75,000 in the new regime and ₹50,000 in the old regime (₹50,000 in both for AY 2024-25).
- Rebate under 87A: tax is nil if taxable income is up to ₹12 lakh in the new regime for AY 2026-27 (₹7 lakh for earlier years) and up to ₹5 lakh in the old regime. Marginal relief applies just above the limit in the new regime.
- Surcharge of 10% applies on tax when taxable income exceeds ₹50 lakh and 15% above ₹1 crore, with marginal relief. Health and education cess of 4% applies on the total.
- For let-out property, 30% standard deduction on rent and the full home loan interest are allowed in the old regime. Home loan interest on a self-occupied house is limited to ₹2 lakh.
- The calculator supports taxable income up to ₹2 crore. This is an estimate for individual taxpayers. Please verify with the latest Finance Act or a tax professional before filing.
Frequently asked questions
Is income up to ₹12 lakh tax free?
Yes, under the new regime for FY 2025-26 onwards, the rebate under Section 87A makes tax zero if taxable income is up to ₹12 lakh. With the ₹75,000 standard deduction, salaried people with income up to ₹12.75 lakh pay no tax.
What is the standard deduction in the new regime?
The standard deduction for salaried individuals and pensioners under the new regime is ₹75,000. Under the old regime it is ₹50,000.
Can I switch between old and new regime every year?
Salaried individuals without business income can choose the regime every year while filing the return. People with business income have limited options to switch.
Which deductions are allowed in the new regime?
Mainly the standard deduction of ₹75,000 and employer contribution to NPS under Section 80CCD(2). Popular deductions like 80C, 80D and HRA are not allowed.
Does the calculator include surcharge and cess?
Yes. Surcharge is added for taxable income above ₹50 lakh (10%) and ₹1 crore (15%) with marginal relief, and a 4% health and education cess is added on the total tax.
Related calculators
View allDisclaimer: This calculator is for information purposes only. Results are estimates based on the inputs you provide and do not guarantee any returns. Please consult a qualified financial advisor before making investment or tax decisions.