Income Tax Calculator FY 2025-26 — New vs Old Regime
Enter your annual income and deductions. See the exact tax under both regimes side-by-side and which one saves you more money. Updated for Union Budget 2025.
Income Details
Salary / business income before deductions
Recommendation
New Regime saves you ₹70,200/year
₹5.8K more in-hand every month
FY 2025-26 Tax Comparison
New Tax Regime
Std. deduction ₹75K · No other deductions
Old Tax Regime
HRA + 80C + 80D + NPS + Home loan
New Regime — Monthly In-Hand
₹83,333/mo
Old Regime — Monthly In-Hand
₹77,483/mo
Tax Comparison
New Regime Rate
0%
Old Regime Rate
7%
New vs Old Tax Regime — FY 2025-26
Every salaried employee in India must choose between the New Tax Regime and the Old Tax Regime when filing their ITR. The right choice can save you tens of thousands of rupees annually. Our calculator computes both and tells you which is better for your specific situation.
New Regime Slabs (FY 2025-26)
| Income Slab | Tax Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4L – ₹8L | 5% |
| ₹8L – ₹12L | 10% |
| ₹12L – ₹16L | 15% |
| ₹16L – ₹20L | 20% |
| ₹20L – ₹24L | 25% |
| Above ₹24L | 30% |
* Income up to ₹12L is effectively zero tax due to Rebate u/s 87A (₹60,000) + ₹75,000 standard deduction. Add 4% Health & Education Cess on tax payable.
Old Regime Slabs (FY 2025-26)
| Income Slab | Tax Rate |
|---|---|
| Up to ₹2.5 lakh | Nil |
| ₹2.5L – ₹5L | 5% |
| ₹5L – ₹10L | 20% |
| Above ₹10L | 30% |
Frequently Asked Questions
What is the difference between new and old tax regime?
The new tax regime (introduced in Budget 2020, revised in 2023 and 2025) offers lower slab rates but eliminates most deductions. The old regime has higher rates but allows deductions like HRA, 80C (₹1.5L), 80D (health insurance), NPS (₹50K), and home loan interest (₹2L). The new regime is generally better for people with fewer deductions; the old regime benefits those who maximally utilise all deductions.
Is income up to ₹12 lakh really tax-free under the new regime?
Yes — under the new regime for FY 2025-26, income up to ₹12 lakh is effectively tax-free due to the rebate under Section 87A (₹60,000 rebate). After applying the ₹75,000 standard deduction, if your net income is ₹12 lakh or less, your tax liability is zero. However, if income exceeds ₹12 lakh even by ₹1, the rebate disappears and you pay tax on the entire amount above slab thresholds.
What is Section 80C and what can I claim under it?
Section 80C allows deductions up to ₹1.5 lakh per year on specific investments and expenses. Eligible items include: EPF/PPF contributions, ELSS mutual funds, life insurance premiums (LIC), NSC, 5-year bank FDs, home loan principal repayment, children's tuition fees, and Sukanya Samriddhi Yojana. You can mix and match these to reach the ₹1.5L limit.
How is HRA exemption calculated?
HRA exemption is the minimum of: (1) Actual HRA received from employer, (2) Rent paid minus 10% of basic salary, and (3) 50% of basic salary if metro city (Mumbai, Delhi, Kolkata, Chennai) or 40% if non-metro. Only applicable in the old regime. To claim HRA, you must actually pay rent and have rent receipts/agreement.
Should I choose new regime or old regime?
Use this calculator — it shows the exact tax under both regimes. As a rough rule: if your total deductions (HRA + 80C + 80D + home loan interest) exceed ₹3–4 lakh, the old regime often saves more. If you have few deductions (renting is cheap, no home loan, limited 80C), the new regime is usually better. From FY 2024-25, the new regime is the default — you must explicitly opt for the old regime when filing.
What is the standard deduction for FY 2025-26?
For FY 2025-26, the standard deduction is ₹75,000 under the new regime (increased from ₹50,000 in Budget 2024) and ₹50,000 under the old regime. This is a flat deduction from gross salary income — no proof required. Salaried employees and pensioners can claim this automatically.