Income Tax Slabs FY 2025-26 (AY 2026-27)
New Tax Regime (Default)
The new tax regime is the default tax regime from FY 2023-24 onwards. It offers lower tax rates with fewer deductions. Under the Budget 2025, income up to ₹12,00,000 is completely tax-free for salaried individuals (after ₹75,000 standard deduction).
| Income Slab | Tax Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 - ₹8,00,000 | 5% |
| ₹8,00,001 - ₹12,00,000 | 10% |
| ₹12,00,001 - ₹16,00,000 | 15% |
| ₹16,00,001 - ₹20,00,000 | 20% |
| ₹20,00,001 - ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Note: Tax rebate under Section 87A applies for taxable income up to ₹12,00,000 under the new regime. Standard deduction of ₹75,000 is available. 4% Health & Education Cess applies on the tax amount.
Old Tax Regime
The old regime allows multiple deductions and exemptions like 80C, 80D, HRA, LTA, etc. It can be beneficial for individuals who have significant deductions.
| Income Slab (Below 60 years) | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 - ₹5,00,000 | 5% |
| ₹5,00,001 - ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Note: Senior citizens (60-80) have ₹3L exemption; super seniors (80+) have ₹5L. Standard deduction of ₹50,000 available. Section 87A rebate for taxable income up to ₹5L.
Income Tax Calculator – Old vs New Regime Comparison
The Income Tax Calculator helps you compute your tax liability under both the old and new tax regimes for FY 2025-26 (Assessment Year 2026-27). With the government making the new regime the default option, it’s essential to compare both regimes before filing your returns.
The most important question every taxpayer faces is: “Should I choose the old regime or the new regime?” The answer depends on how much you can claim in deductions. This calculator does that comparison instantly.
What is an Income Tax Calculator?
An income tax calculator is an online tool that estimates your tax payable based on your income, deductions, age group, and chosen tax regime. It factors in slab rates, standard deduction, Section 80C & 80D deductions, HRA exemptions, and the Section 87A rebate to give you the most accurate tax estimate.
Our calculator compares both regimes side by side and recommends the one that saves you more tax, along with a detailed breakdown of how the tax is computed.
Old Regime vs New Regime – Which Should You Choose?
Here’s a general guideline:
- Choose New Regime if your total deductions (80C + 80D + HRA + other) are less than approximately ₹3.75 lakh for income of ₹15L, or you don’t want the hassle of managing investments for tax savings.
- Choose Old Regime if you have significant deductions — home loan interest (₹2L), 80C investments (₹1.5L), health insurance (80D), HRA, and other exemptions. The more deductions you claim, the more the old regime favors you.
Quick rule: If your deductions are more than ₹3.75 lakh (for income between ₹10-20L), the old regime is likely better. Below that, the new regime usually wins.
Key Deductions Under Old Tax Regime
- Section 80C (up to ₹1.5 lakh) — PPF, ELSS, EPF contribution, life insurance premium, 5-year FD, NPS (Tier 1), tuition fees, home loan principal.
- Section 80CCD(1B) (additional ₹50,000) — NPS contribution beyond the 80C limit.
- Section 80D (₹25,000-₹1,00,000) — Health insurance premiums. ₹25K for self & family, ₹25K for parents (₹50K if parents are senior citizens).
- Section 24(b) (up to ₹2 lakh) — Home loan interest for self-occupied property.
- HRA Exemption — Calculated based on actual HRA received, rent paid, and city of residence. Significant for metro-city renters.
- Section 80E — Education loan interest (no upper limit).
- Section 80TTA/80TTB — Savings account interest up to ₹10,000 (₹50,000 for seniors).
How Income Tax is Calculated
The calculation follows these steps:
- Step 1: Determine your Gross Total Income (salary + other income sources).
- Step 2: Subtract applicable deductions (80C, 80D, HRA, standard deduction, etc.).
- Step 3: Apply tax slab rates on the resulting Taxable Income.
- Step 4: Apply Section 87A rebate if eligible (taxable income up to ₹5L in old regime / ₹12L in new regime).
- Step 5: Add 4% Health & Education Cess on the tax amount.
- Step 6: Subtract TDS already deducted to arrive at tax payable or refund.
Tax-Saving Tips for FY 2025-26
- Max out 80C — Invest ₹1.5 lakh in ELSS, PPF, or EPF. ELSS has the shortest lock-in (3 years) among 80C options.
- Get health insurance — ₹25,000 deduction for self & family, plus ₹25,000+ for parents under 80D.
- NPS for extra ₹50K — Section 80CCD(1B) offers an additional ₹50,000 deduction beyond 80C limit.
- Claim HRA properly — If you live in a rented house, HRA exemption can be substantial, especially in metros.
- Home loan benefits — Up to ₹2L interest deduction (24b) + ₹1.5L principal (80C).
- Time your investments — Don’t wait until March. Start ELSS SIP in April for full-year compounding.
Frequently Asked Questions
For ₹10L salary with standard deductions (80C: ₹1.5L, 80D: ₹25K, standard deduction: ₹50K), the old regime results in approximately ₹54,600 tax, while the new regime results in ₹46,800. At this income level, the new regime is usually better unless you have additional deductions like HRA or home loan interest.
At ₹15L, the new regime is better if your total deductions are below ~₹3.75 lakh. If you claim 80C (₹1.5L) + 80D (₹50K) + HRA (₹2L) + standard deduction (₹50K) = ₹4.5L in deductions, the old regime saves more. Use this calculator with your exact numbers for a precise comparison.
Yes, from FY 2024-25 onwards, a standard deduction of ₹75,000 is available for salaried individuals under the new tax regime. Under the old regime, the standard deduction is ₹50,000. This is automatically applied and doesn’t require any investment or documentation.
Section 87A provides a rebate that effectively makes your tax liability zero if your taxable income is within the specified limit. Under the new regime, the rebate applies for taxable income up to ₹12,00,000 (making income up to ₹12.75L tax-free for salaried individuals after standard deduction). Under the old regime, rebate applies for taxable income up to ₹5,00,000.
Yes, salaried individuals can switch between old and new regime each financial year at the time of filing their return. However, individuals with business income can switch only once from new to old regime and the choice is final thereafter. It’s advisable to compare both regimes each year as your deductions may change.
After computing your income tax (including any surcharge), a 4% cess is added. This cess funds health and education initiatives. For example, if your calculated tax is ₹1,00,000, the cess adds ₹4,000, making your total tax ₹1,04,000. Cess applies to all taxpayers regardless of income level or regime chosen.
Yes. Under the new regime for FY 2025-26, if your taxable income (after ₹75,000 standard deduction) is up to ₹12,00,000, you get a full tax rebate under Section 87A. This means salaried individuals with gross income up to ₹12,75,000 effectively pay zero tax. However, if your taxable income exceeds ₹12L even by ₹1, you pay tax on the entire amount above the basic exemption limit.
Beyond 80C (₹1.5L), you can save tax via: NPS under 80CCD(1B) for additional ₹50K, health insurance under 80D (₹25K-₹1L), home loan interest under Section 24(b) (₹2L), education loan interest under 80E (no limit), donations under 80G, and HRA exemption if you live in a rented house. Together, these can provide ₹5-6L+ in deductions.
Surcharge is an additional tax on top of income tax for high earners. Under the new regime: 10% surcharge on income above ₹50L, 15% above ₹1 crore, 25% above ₹2 crore (capped at 25% for new regime). Under old regime, it goes up to 37% for income above ₹5 crore. The 4% cess is then applied on tax + surcharge.
For individuals and salaried employees, the due date for filing Income Tax Return for FY 2025-26 (AY 2026-27) is typically July 31, 2026. For those requiring a tax audit, the deadline is October 31, 2026. Late filing attracts a penalty of ₹5,000 (₹1,000 if income is below ₹5L) and you lose the ability to carry forward certain losses.