Income Tax Calculator
Old vs new regime tax for FY 2025-26, with rebate and surcharge.
FY 2025-26 (AY 2026-27). Deductions apply in the old regime; the new regime uses the ₹75,000 standard deduction for salaried income.
Slab-wise breakdown (new regime)
| Slab | Rate | Tax |
|---|---|---|
| ₹0 – ₹4 L | 0% | ₹0 |
| ₹4 L – ₹8 L | 5% | ₹20,000 |
| ₹8 L – ₹12 L | 10% | ₹40,000 |
| §87A rebate | — | −₹60,000 |
| Health & education cess | 4% | ₹0 |
This calculator computes your India income tax for FY 2025-26 (AY 2026-27) under both the new and old regimes side by side, and tells you which one leaves more money in your hand. It applies the ₹75,000 standard deduction (new regime), the §87A rebate that makes income up to ₹12 lakh effectively tax-free for salaried taxpayers, marginal relief, surcharge and the 4% health & education cess.
Under the new regime, a salaried person earning up to ₹12,75,000 pays zero tax in FY 2025-26 — the ₹75,000 standard deduction brings taxable income to ₹12 lakh, and the §87A rebate wipes out the ₹60,000 slab tax.
New regime slabs — FY 2025-26
The new (default) regime taxes income in these slabs:
- Up to ₹4,00,000 — nil
- ₹4,00,001 – ₹8,00,000 — 5%
- ₹8,00,001 – ₹12,00,000 — 10%
- ₹12,00,001 – ₹16,00,000 — 15%
- ₹16,00,001 – ₹20,00,000 — 20%
- ₹20,00,001 – ₹24,00,000 — 25%
- Above ₹24,00,000 — 30%
Old regime slabs and who should pick it
The old regime keeps the classic slabs (nil to ₹2.5 lakh, 5% to ₹5 lakh, 20% to ₹10 lakh, 30% above) but lets you claim deductions: 80C (₹1.5 lakh), 80D health insurance, HRA exemption, home-loan interest and more. It usually wins only when your total deductions are large — typically above ₹4–4.5 lakh for incomes in the ₹15–25 lakh band. Enter your deductions above and the calculator does the comparison for you.
Rebate, marginal relief, surcharge and cess
§87A rebate (new regime): taxable income up to ₹12 lakh pays zero tax. Just above the limit, marginal relief caps your tax at the amount by which income exceeds ₹12 lakh — so ₹12.1 lakh taxable pays ₹10,000 + cess, not ₹61,500.
Surcharge applies on the tax (not income) once taxable income crosses ₹50 lakh — 10%, rising to 15% above ₹1 crore and 25% above ₹2 crore in the new regime — with its own marginal relief at each threshold. Finally, a 4% health & education cess is added to tax plus surcharge.
Frequently asked questions
Which regime is better — old or new?
For most salaried taxpayers with modest deductions, the new regime wins in FY 2025-26 because of the higher rebate and wider slabs. The old regime wins only when deductions (80C, 80D, HRA, home-loan interest) are substantial. This calculator computes both so you can compare exactly.
Is income up to ₹12 lakh really tax-free?
Under the new regime in FY 2025-26, yes — taxable income up to ₹12 lakh attracts a full §87A rebate. For salaried people, the ₹75,000 standard deduction stretches this to ₹12.75 lakh of salary. Special-rate income like short-term capital gains is not covered by the rebate.
What is the standard deduction?
A flat deduction from salary/pension income with no proof required: ₹75,000 in the new regime, ₹50,000 in the old regime, for FY 2025-26.
What is marginal relief?
A cap that stops a small income increase from causing a larger tax increase. It applies just above the ₹12 lakh rebate limit (new regime) and just above each surcharge threshold (₹50 lakh, ₹1 crore…).
Does this calculator handle capital gains?
No — it covers regular income (salary, business, interest, rent). Capital gains are taxed at special rates with their own rules and are excluded from the §87A rebate.
Which financial year does this use?
FY 2025-26 (assessment year 2026-27), per the Finance Act 2025. Slabs are stored as versioned data and updated each Budget after CA verification.
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Disclaimer: results are estimates based on the inputs and published rules/rates, for information only — not investment, tax or legal advice. Verify important decisions with a qualified professional. See our full disclaimer.