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

Every year the same question returns — old regime or new? This calculator works out your tax under both and shows which is better for you.

What is it?

For FY 2025-26 the new regime is the default. It makes income up to ₹12 lakh tax-free via the Section 87A rebate but drops most deductions. The old regime has higher rates but many deductions.

How is it calculated?

In both regimes, tax is added slab by slab, the 87A rebate is subtracted, and a 4% cess is added. The new regime also gives marginal relief just above ₹12 lakh.

Example

A salary of ₹12.75 lakh (₹12 lakh after the ₹75,000 standard deduction) attracts zero tax under the new regime — the biggest change this year.

Key things to know

• With few deductions, the new regime is usually better.
• With a large home-loan interest plus 80C, check the old regime.
• Always compute both before choosing.
• Salaried taxpayers can switch regime each year.

What to do next

To cut tax, compare instruments like ELSS, insurance and NPS.

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Frequently asked questions

Is income up to ₹12 lakh really tax-free?
Yes, under the new regime via the 87A rebate, for resident individuals.

Is HRA exemption available?
Only under the old regime.

Do NRIs get the rebate?
No — 87A is for resident individuals only.

Disclaimer: This article is for general information only and is not financial or tax advice. Consult a qualified advisor before making investment or tax decisions.