Income Tax Calculator India FY 2025-26
| Income Range | Rate | Taxable Amount (₹) | Tax (₹) |
|---|---|---|---|
| ₹0 – ₹3,00,000 | 0% | 3,00,000 | 0 |
| ₹3,00,000 – ₹7,00,000 | 5% | 4,00,000 | 20,000 |
| ₹7,00,000 – ₹10,00,000 | 10% | 2,25,000 | 22,500 |
| Total Tax (before rebate) | 42,500 | ||
Tax calculated as per Finance Act 2025. For professional advice, consult a CA or tax adviser. Surcharge rates and slabs verified for FY 2025-26 (AY 2026-27).
New Regime vs Old Regime — Which is Better?
The new tax regime became the default from FY 2023-24. For FY 2025-26, the government further sweetened it by raising the standard deduction to ₹75,000 (from ₹50,000). The new regime has lower slab rates but does not allow most deductions and exemptions. The old tax regime has higher rates but lets you claim a wide range of deductions — 80C, HRA, 80D, NPS, home loan interest, and more.
The break-even point — where both regimes result in equal tax — depends on your income and deductions. As a rule of thumb:
| Annual Income | Deductions needed to prefer Old Regime |
|---|---|
| ₹7.5 lakh | ₹1.5 lakh+ (mostly 80C alone) |
| ₹10 lakh | ₹2.5 lakh+ (80C + HRA + 80D) |
| ₹15 lakh | ₹3.5 lakh+ (80C + HRA + home loan + NPS) |
| ₹20 lakh+ | ₹4.5 lakh+ (maximising all major deductions) |
For most salaried taxpayers without home loans or significant HRA claims, the new regime saves more tax. But if you are a homeowner claiming ₹2 lakh in home loan interest plus ₹1.5L in 80C plus HRA, the old regime is likely better. Always compute both using this calculator.
FY 2025-26 New Regime Tax Slabs
The new regime (default) has seven slabs with no deductions allowed (except the ₹75,000 standard deduction for salaried employees):
| Income Range | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹7,00,000 | 5% |
| ₹7,00,001 – ₹10,00,000 | 10% |
| ₹10,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Effective tax-free limit under new regime for salaried individuals: ₹75,000 (standard deduction) + ₹7,00,000 (rebate 87A threshold) = ₹7,75,000 gross salary, zero tax.
Old Regime Tax Slabs (FY 2025-26)
The old regime slabs differ by age. Below 60, the basic exemption is ₹2.5 lakh:
| Income Range | Below 60 | Senior (60–80) | Super Senior (80+) |
|---|---|---|---|
| Up to ₹2.5L | Nil | — | — |
| Up to ₹3L | — | Nil | — |
| Up to ₹5L | — | — | Nil |
| ₹2.5L – ₹5L | 5% | 5% (from ₹3L) | — |
| ₹5L – ₹10L | 20% | 20% | 20% (from ₹5L) |
| Above ₹10L | 30% | 30% | 30% |
Key Deductions Under Old Regime
Section 80C (₹1,50,000 limit): EPF, PPF, ELSS, life insurance premiums, NSC, 5-year tax-saving FD, home loan principal, tuition fees, Sukanya Samriddhi.
Section 80D (up to ₹25,000 for self, ₹50,000 for senior citizen parents): Health insurance premiums, preventive health check-up (₹5,000 sub-limit).
Section 80CCD(1B) — NPS (₹50,000 over and above 80C): Additional contribution to National Pension System Tier I. This gives an extra ₹50,000 deduction beyond the ₹1.5 lakh 80C limit.
Section 24(b) — Home Loan Interest (up to ₹2,00,000): Interest paid on home loan for self-occupied property. No limit if let out.
HRA Exemption: Minimum of (a) actual HRA received, (b) 50% of basic for metro / 40% for non-metro, (c) rent paid minus 10% of basic.
Surcharge and Cess Explained
Surcharge is levied on the tax amount (not income) for high earners. Health and Education Cess is 4% on the sum of tax and surcharge. For FY 2025-26:
| Taxable Income | Surcharge Rate |
|---|---|
| Up to ₹50 lakh | Nil |
| ₹50L – ₹1 Cr | 10% |
| ₹1 Cr – ₹2 Cr | 15% |
| ₹2 Cr – ₹5 Cr | 25% |
| Above ₹5 Cr (old regime) | 37% |
| Above ₹5 Cr (new regime) | 25% (capped) |
The new regime cap of 25% on surcharge (even above ₹5 crore) is a significant benefit for very high earners compared to the 37% rate under the old regime.
Frequently Asked Questions
Which is better — new regime or old regime for FY 2025-26?
The new regime is generally better if you have limited deductions. With the ₹75,000 standard deduction and rebate u/s 87A making income up to ₹7.75 lakh effectively tax-free under the new regime, most salaried employees with basic deductions benefit from it. The old regime is better only if your total deductions (80C + HRA + 80D + home loan interest etc.) exceed roughly ₹3.75 lakh for a ₹10–15 lakh income range. Use this calculator to compare both and choose the lower liability.
What is the standard deduction for FY 2025-26?
Under the new regime, the standard deduction is ₹75,000 for salaried individuals (increased from ₹50,000 in the Budget 2024). Under the old regime, the standard deduction remains ₹50,000. The standard deduction is automatically deducted from your gross salary — no proof or investment needed.
What is rebate under section 87A?
Section 87A provides a full tax rebate if your taxable income does not exceed the threshold. Under the new regime for FY 2025-26, if your taxable income is ₹7 lakh or less, you get a full rebate (up to ₹25,000). Under the old regime, the threshold is ₹5 lakh with a rebate up to ₹12,500. This means zero tax liability up to ₹7.75 lakh gross salary under the new regime (after ₹75,000 standard deduction).
What is surcharge and who pays it?
Surcharge is an additional tax levied on the income tax itself — not on income. It applies when taxable income exceeds ₹50 lakh. Rates: 10% (₹50L–₹1Cr), 15% (₹1Cr–₹2Cr), 25% (₹2Cr–₹5Cr). For income above ₹5 crore, the old regime surcharge is 37%, but the new regime caps it at 25%. The surcharge is calculated on the income tax amount, and cess (4%) is then applied on tax + surcharge.
How is Section 80C deduction calculated?
Section 80C allows deductions up to ₹1,50,000 per year for investments and expenses including: EPF/PPF contributions, ELSS mutual funds (3-year lock-in), life insurance premiums, NSC, tax-saving FDs (5 years), home loan principal repayment, tuition fees for children, and Sukanya Samriddhi Yojana. The ₹1.5 lakh is a combined limit — you cannot claim more than ₹1.5 lakh total across all 80C instruments. This deduction is only available under the old regime.
Are HRA exemptions applicable under the new regime?
No. HRA exemption is not available under the new regime. It is available only under the old regime. The HRA exemption is the minimum of: (a) actual HRA received, (b) 50% of basic salary for metro cities / 40% for non-metro, (c) excess of rent paid over 10% of basic salary. If you pay significant rent and claim a large HRA exemption, this is a strong reason to consider the old regime.
Related Calculators
- Old vs New Tax Regime Calculator — Side-by-side comparison with all deductions
- HRA Calculator — Calculate your exact HRA exemption
- India Salary Calculator — CTC to in-hand salary with TDS and EPF
- 80C Calculator — Optimise your Section 80C investments
- US Paycheck Calculator — Federal and state withholding for US salaries