Income Tax Calculator (Old vs New Regime) FY 2025-26
Compare your estimated tax liability under the Old and New regimes with updated slabs, Section 87A rebates, and standard deductions for FY 2025-26.
Income & Tax Status
Old-Regime Deductions (for comparison)
Tax Liability Comparison
Default regime under Budget 2025 with lower tax slabs up to ₹24L.
Supports full deductions like HRA, 80C, 24b, and 80D exemptions.
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Calculation Methodology & Rules
The Income Tax Calculator (Old vs New Regime) FY 2025-26 calculates your annual tax liabilities based on the guidelines issued by the Central Board of Direct Taxes (CBDT), updated for the Union Budget 2025. It compares the simplified New Tax Regime (which is the default) with the exemption-heavy Old Tax Regime.
Worked example: ₹15 lakh salary, no deductions
For a salaried earner claiming nothing, the new regime's lower slabs win comfortably. The gap narrows as deductions rise — claim roughly ₹4 lakh or more (80C + home-loan interest + HRA) and the old regime can pull ahead. This tool finds your break-even.
- Gross Salary: ₹15,00,000 (Salaried)
- Exemptions & Deductions: Nil
- New Regime Computed Tax: ₹97,500
- Old Regime Computed Tax: ₹2,57,400
- Regime Savings: New regime saves ₹1,59,900.
- Compare regimes or check standard rules in our comprehensive Income Tax in India Guide.
- Read our deep-dive analysis: Old vs New Tax Regime — Who Saves More?
- Analyze the rupee tax levels from ₹5L to ₹50L in our Salary Tax Slabs Breakdown Study.
- Determine tax under the old system with our Old Tax Regime Calculator.
- Check standalone simplified tax using the New Tax Regime Calculator.
- Estimate your eligible deductions with the Section 80C Calculator.
New Regime Slabs (FY 2025-26 / AY 2026-27)
The New Tax Regime offers lower rates but removes almost all deductions (except standard deduction of ₹75,000 for salaried employees and employer NPS contribution under Section 80CCD(2)):
| Net Taxable Income Bracket | New Tax Rate |
|---|---|
| Up to ₹4,00,000 | 0% |
| ₹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% |
Old Regime Slabs (FY 2025-26 / AY 2026-27)
The Old Tax Regime maintains higher slab rates but allows individuals to offset their taxable income by claiming deductions under Section 80C, 80D, HRA, and home loan interest:
| Net Taxable Income Bracket | Old Tax Rate |
|---|---|
| Up to ₹2,50,000 | 0% |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Section 87A Tax Rebates
- New Regime: Full rebate of tax up to ₹60,000 if your net taxable income is up to ₹12,00,000. Marginal tax relief is provided if your taxable income slightly exceeds ₹12 Lakhs (the tax cannot exceed the income earned above ₹12 Lakhs).
- Old Regime: Full rebate of tax up to ₹12,500 if your net taxable income is up to ₹5,00,000. There is no marginal relief under the old regime.
Health & Education Cess
A flat 4% Health and Education Cess is added to the sum of your calculated income tax and surcharge under both regimes.
Source: Income Tax Department of India guidelines, CBDT Circulars, and Union Budget 2025.
Frequently Asked Questions
It depends on your deductions. With few deductions the new regime usually wins on its lower slabs; with large 80C, HRA, and home-loan-interest claims the old regime can be cheaper. This calculator computes both and shows the lower one for your numbers.
Yes. Since FY 2023-24 the new regime is the default under Section 115BAC. You must actively choose the old regime (via Form 10-IEA if you have business income).
Salaried and other non-business taxpayers can pick either regime each year directly in the ITR. Those with business or professional income face restrictions on switching back to the new regime once they opt out.