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

Under the new tax regime for FY 2025-26 (AY 2026-27), the slabs are: up to Rs 4 lakh - nil, Rs 4 lakh to Rs 8 lakh - 5%, Rs 8 lakh to Rs 12 lakh - 10%, Rs 12 lakh to Rs 16 lakh - 15%, Rs 16 lakh to Rs 20 lakh - 20%, Rs 20 lakh to Rs 24 lakh - 25%, and above Rs 24 lakh - 30%. A standard deduction of Rs 75,000 is available.

What is the rebate under Section 87A?

Under the new tax regime for FY 2025-26, Section 87A provides a full rebate on income tax if your total taxable income does not exceed Rs 12 lakh (Rs 12,75,000 for salaried individuals after standard deduction). This effectively means zero tax for incomes up to this threshold. Under the old regime, the rebate is available if taxable income does not exceed Rs 5 lakh.

Is the new tax regime the default option?

Yes, from FY 2023-24 onwards, the new tax regime is the default regime for all taxpayers. If you want to opt for the old regime, you need to explicitly choose it while filing your income tax return. Salaried individuals can inform their employer at the beginning of the financial year to deduct TDS under the old regime.

How is health and education cess calculated on income tax?

A health and education cess of 4% is levied on the total income tax (including surcharge, if applicable). For example, if your computed income tax is Rs 1,00,000, the cess would be Rs 4,000, making the total tax payable Rs 1,04,000. This cess applies under both the old and new tax regimes.

Income Tax Calculator — FY 2025-26

Compare old and new tax regimes and find out which one saves you more for Assessment Year 2026-27.

Last updated: March 2026

Annual Gross Income

Enter your total annual income before any deductions

Age Group

Deductions (Old Regime)

Section 80C (max ₹1,50,000)

EPF, PPF, ELSS, LIC, NSC, tuition fees, home loan principal

Section 80D — Health Insurance (max ₹1,00,000)

Premium for self, spouse, children and parents

HRA Exemption

Calculated HRA exemption amount (if applicable)

Other Deductions (80E, 80G, 80TTA, 24b, NPS, etc.)

Include Section 24(b) home loan interest, NPS 80CCD(1B), etc.

How to Use This Income Tax Calculator

This free income tax calculator helps you estimate your tax liability for Financial Year 2025-26 (Assessment Year 2026-27) under both the old and new tax regimes. Here is how to get your personalised comparison:

Enter Your Annual Gross Income — This is your total income from salary, business, house property, capital gains and other sources before any deductions. For salaried individuals, use your CTC or gross salary figure.
Select Your Age Group — Age determines the basic exemption limit under the old regime. Senior citizens (60-80 years) get a higher exemption of ₹3 lakh, and super senior citizens (above 80) get ₹5 lakh.
Enter Deductions for Old Regime — Fill in your investments and deductions under Section 80C, 80D, HRA exemption and any other applicable sections. These deductions only apply to the old regime calculation.
Click Compare Tax Regimes — The calculator instantly shows your tax under both regimes side by side with a clear recommendation on which regime saves you more money.

The results update automatically when you change any input. Use the comparison to make an informed decision before filing your ITR or intimating your employer about your regime choice.

How Income Tax is Calculated in India

Income tax in India follows a progressive slab structure, meaning higher portions of your income are taxed at higher rates. The calculation involves these steps:

Compute Gross Total Income — Add up income from all five heads: salary, house property, business or profession, capital gains and other sources.
Subtract Deductions — Under the old regime, claim deductions under Chapter VI-A (80C, 80D, 80E, etc.) and exemptions like HRA. Under the new regime, only the standard deduction of ₹75,000 is available for salaried individuals.
Apply Tax Slabs — The resulting taxable income is taxed according to the applicable slab rates for your chosen regime.
Add Cess — A health and education cess of 4% is applied on the total tax computed. Surcharge may also apply for very high incomes.
Subtract Rebate under Section 87A — If eligible, the rebate reduces your tax to zero. Under the new regime, the rebate covers taxable income up to ₹12 lakh (₹12,75,000 for salaried after standard deduction). Under the old regime, it covers taxable income up to ₹5 lakh.

Old vs New Tax Regime — Slab Comparison

The table below shows the income tax slabs for FY 2025-26 under both regimes for individuals below 60 years of age:

Income Slab	Old Regime Rate	New Regime Rate
Up to ₹2,50,000	Nil	Nil
₹2,50,001 to ₹4,00,000	5%	Nil
₹4,00,001 to ₹5,00,000	5%	5%
₹5,00,001 to ₹8,00,000	20%	5%
₹8,00,001 to ₹10,00,000	20%	10%
₹10,00,001 to ₹12,00,000	30%	10%
₹12,00,001 to ₹16,00,000	30%	15%
₹16,00,001 to ₹20,00,000	30%	20%
₹20,00,001 to ₹24,00,000	30%	25%
Above ₹24,00,000	30%	30%

Key difference: The new regime has more slabs with lower rates but does not allow most deductions. The old regime has fewer slabs with higher rates but lets you reduce taxable income through various deductions and exemptions. The break-even point depends on how much you can claim in deductions — typically, if your total deductions exceed ₹3.75 lakh, the old regime may work out better.

Tips to Save Income Tax in India

Maximise Section 80C investments. Utilise the full ₹1.5 lakh limit through a mix of EPF contributions (often automatic for salaried), PPF deposits, ELSS mutual funds, life insurance premiums and tuition fees for your children. ELSS offers the dual benefit of tax saving and potential market-linked returns with a short 3-year lock-in.
Get adequate health insurance under Section 80D. Premiums paid for yourself, spouse, children and parents qualify for deduction. You can claim up to ₹25,000 for self and family, plus an additional ₹25,000 (or ₹50,000 for senior citizen parents) for your parents' policy — a total of up to ₹75,000 or even ₹1,00,000.
Claim HRA exemption if you pay rent. If you receive House Rent Allowance as part of your salary and live in rented accommodation, you can claim HRA exemption. This is calculated as the minimum of actual HRA received, 50% of basic salary (40% for non-metro), or rent paid minus 10% of basic salary.
Invest in NPS for additional ₹50,000 deduction. Section 80CCD(1B) provides an extra ₹50,000 deduction over and above the 80C limit for contributions to the National Pension System. This is available under the old regime and can bring meaningful savings at higher income levels.
Compare both regimes every year. Your optimal regime depends on your specific deductions. Use this calculator each year to verify which regime works best. Remember, salaried individuals can switch between regimes every year.
Do not overlook home loan benefits. Interest on home loan qualifies under Section 24(b) for up to ₹2 lakh deduction on self-occupied property under the old regime, and the principal repayment falls under Section 80C. These can make a significant difference for homeowners.

Frequently Asked Questions

What is the difference between the old and new tax regime?

The old tax regime allows you to claim numerous deductions and exemptions such as Section 80C (up to ₹1.5 lakh), 80D (health insurance), HRA exemption, Section 24(b) home loan interest, and many others. However, the base tax rates are higher — 5%, 20%, and 30% across three main slabs. The new tax regime offers significantly lower and more granular slab rates (from 5% to 30% across seven slabs), but you cannot claim most deductions except a standard deduction of ₹75,000 for salaried individuals. The new regime is the default since FY 2023-24.

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

For FY 2025-26, the new regime slabs are: up to ₹4 lakh — nil, ₹4 lakh to ₹8 lakh — 5%, ₹8 lakh to ₹12 lakh — 10%, ₹12 lakh to ₹16 lakh — 15%, ₹16 lakh to ₹20 lakh — 20%, ₹20 lakh to ₹24 lakh — 25%, and above ₹24 lakh — 30%. A standard deduction of ₹75,000 is available to salaried individuals, effectively making income up to ₹4,75,000 tax-free for them.

What is Section 80C and how much can I save?

Section 80C allows individuals to claim a deduction of up to ₹1,50,000 per year on specified investments and expenses under the old regime. Eligible instruments include Employee Provident Fund (EPF), Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS), National Savings Certificate (NSC), 5-year tax-saving fixed deposits, life insurance premiums, tuition fees for up to two children, Sukanya Samriddhi Yojana, and the principal component of home loan repayment. At the highest tax bracket of 30%, full utilisation of 80C can save you up to ₹46,800 (including cess).

What is the Section 87A rebate and who is eligible?

Section 87A provides a rebate that effectively makes your tax liability zero if your taxable income is within a specified limit. Under the new regime for FY 2025-26, the rebate applies if your total taxable income does not exceed ₹12 lakh. For salaried individuals with the ₹75,000 standard deduction, this means gross income up to ₹12,75,000 results in zero tax. Under the old regime, the rebate is available if taxable income does not exceed ₹5 lakh, providing a maximum rebate of ₹12,500.

Is the new regime always better than the old regime?

Not necessarily. The new regime works better if you do not have significant deductions to claim. However, if your total deductions under the old regime — including 80C, 80D, HRA, home loan interest (Section 24b), NPS (80CCD) and others — are substantial (typically more than ₹3.75 lakh to ₹4 lakh), the old regime may result in lower tax. The break-even depends on your income level and available deductions, which is why this calculator compares both regimes side by side.

How is the 4% health and education cess calculated?

The cess of 4% is calculated on the total income tax amount (plus surcharge, if applicable). It applies equally under both regimes. For example, if your income tax before cess is ₹1,00,000, the cess adds ₹4,000, resulting in a total tax of ₹1,04,000. The cess funds the health and education sectors and is not eligible for any deduction.