Income Tax Calculator
Compare your tax liability under the Old and New tax regimes for FY 2025-26 (AY 2026-27). Find out which regime saves you more.
Budget 2025 made the New Tax Regime significantly more attractive for salaried individuals. With revised slab rates starting at 0% up to Rs 4 lakh, a standard deduction of Rs 75,000, and an enhanced Section 87A rebate of Rs 60,000, salaried taxpayers earning up to Rs 12.75 lakh gross salary now pay zero income tax under the New Regime. These changes make it essential to recalculate which regime works best for your specific deduction profile every year.
This calculator helps you compare both regimes instantly. Enter your gross income, select your age group, and input your Old Regime deductions (80C, 80D, 80CCD(1B), HRA, and others). The tool computes your total tax under each regime including cess and surcharge, shows your effective tax rate, and identifies the exact breakeven deduction level where the Old Regime starts saving you more than the New Regime.
Income Details
Deductions (Old Regime)
These deductions apply only under the Old Regime. The New Regime allows only the standard deduction.
Tax Comparison — FY 2025-26
New Regime saves you ₹1,01,400
The New Tax Regime is better for you at your current deduction level.
| Component | Old Regime | New Regime ✓ |
|---|---|---|
| Gross Income | ₹12,00,000 | ₹12,00,000 |
| Standard Deduction | ₹50,000 | ₹75,000 |
| Total Deductions | ₹2,75,000 | ₹75,000 |
| Taxable Income | ₹9,25,000 | ₹11,25,000 |
| Tax Before Cess | ₹97,500 | ₹0 |
| Cess (4%) | ₹3,900 | ₹0 |
| Total Tax | ₹1,01,400 | ₹0 |
| Effective Tax Rate | 8.45% | 0% |
Tax Comparison
Slab-wise Tax Breakdown
Benefits of Using an Income Tax Calculator
Instant regime comparison
See your tax liability under both Old and New regimes side by side, so you can pick the one that saves you more without manual calculations.
Breakeven analysis
Discover the exact deduction threshold at which switching from the New Regime to the Old Regime becomes beneficial for your income level.
Slab-wise transparency
View the detailed slab-by-slab tax breakdown for both regimes, so you understand exactly where each rupee of tax comes from.
All major deductions covered
Input Section 80C, 80D, 80CCD(1B), HRA exemption, and other deductions in one place to get a complete Old Regime picture.
Effective tax rate insight
See your effective tax rate (not just marginal rate) for both regimes, giving you a true picture of your real tax burden as a percentage of gross income.
Salient Features of This Income Tax Calculator
Updated for Budget 2025
Incorporates all FY 2025-26 changes including the revised New Regime slab rates, Rs 75,000 standard deduction, and the enhanced Section 87A rebate of Rs 60,000.
Section 87A rebate applied automatically
If your taxable income under the New Regime is up to Rs 12 lakh, the calculator automatically applies the Rs 60,000 rebate, bringing your tax to zero.
Surcharge and cess included
The final tax figure includes 4% Health and Education Cess and applicable surcharge for high-income earners, so the amount shown is what you actually pay.
Multiple deduction sections
Separate input fields for 80C, 80D, 80CCD(1B), HRA, and other deductions give you granular control instead of a single lump-sum deduction field.
Age-group support
Handles different basic exemption limits for individuals below 60, senior citizens (60-80), and super senior citizens (above 80) under the Old Regime.
New Tax Regime — Slab Rates for FY 2025-26
These are the revised slab rates applicable under the New Tax Regime after Budget 2025 changes.
| Income Range | Tax Rate |
|---|---|
| Up to Rs 4,00,000 | 0% |
| Rs 4,00,001 - Rs 8,00,000 | 5% |
| Rs 8,00,001 - Rs 12,00,000 | 10% |
| Rs 12,00,001 - Rs 16,00,000 | 15% |
| Rs 16,00,001 - Rs 20,00,000 | 20% |
| Rs 20,00,001 - Rs 24,00,000 | 25% |
| Above Rs 24,00,000 | 30% |
Plus 4% Health and Education Cess on total tax. Surcharge applies for income above Rs 50 lakh.
Old vs New Regime — Feature Comparison
| Feature | Old Regime | New Regime |
|---|---|---|
| Standard Deduction | Rs 50,000 | Rs 75,000 |
| Section 80C (ELSS, PPF, EPF, etc.) | Up to Rs 1.5L | Not available |
| Section 80D (Health Insurance) | Up to Rs 1L | Not available |
| Section 80CCD(1B) — NPS | Up to Rs 50K | Not available |
| HRA Exemption | Available | Not available |
| Home Loan Interest (80EEA) | Up to Rs 2L | Not available |
| Basic Exemption (Below 60) | Rs 2.5L | Rs 4L (via slab) |
| Section 87A Rebate | Rs 12,500 (up to Rs 5L) | Rs 60,000 (up to Rs 12L) |
| Default Regime | Must opt in | Default (opt out for Old) |
Budget 2025 — Key Income Tax Changes
Zero Tax Up to Rs 12.75L
Salaried individuals earning up to Rs 12.75 lakh gross salary pay zero tax under the New Regime, thanks to the Rs 75,000 standard deduction and Rs 60,000 Section 87A rebate.
New Regime Is Default
The New Tax Regime is now the default for all taxpayers. You must explicitly opt out and choose the Old Regime while filing your ITR if you want to claim deductions under 80C, 80D, HRA, etc.
Revised Slab Structure
The New Regime now has 7 slabs with rates from 0% to 30%. The 0% slab extends up to Rs 4 lakh (previously Rs 3 lakh), and intermediate slabs have been widened to reduce the tax burden at every income level.
Frequently Asked Questions
This income tax calculator provides illustrative estimates only and is not a substitute for professional tax advice. Tax calculations are based on the Income Tax Act provisions for FY 2025-26 (AY 2026-27) as announced in Union Budget 2025. Surcharge and 4% Health and Education Cess are included. The calculator does not account for capital gains, income from house property (other than HRA), special rate incomes, or any Section 10 exemptions beyond standard deduction. Actual tax liability may vary based on your complete financial situation. Please consult a qualified tax professional or chartered accountant for personalised advice before making any tax-related decisions.
Save More Tax?
Our experts can help you optimize your tax-saving investments with ELSS and NPS.
Smart Tax Planning Tips
Tax-Saving Tips
- → Max out Section 80C with ELSS for tax-free equity exposure
- → Invest Rs 50,000 in NPS for extra 80CCD(1B) deduction
- → Get health insurance for 80D benefits (Rs 25K-Rs 1L)
- → Compare both regimes annually — your optimal choice may change