Income Tax Calculator
Since the new regime became the default, every salaried Indian faces the same annual question: old or new? The answer depends on your deductions — and the breakeven moves every Budget.
For FY 2025-26 the new regime is strikingly generous: salary up to ~₹12.75 lakh (₹12 lakh + ₹75,000 standard deduction) pays zero tax via the 87A rebate. The old regime only wins if your deductions (80C, 80D, HRA) are large enough to beat that.
Four steps, thirty seconds.
Enter your annual gross income. Salary plus other income, before any deductions.
Enter your 80C and 80D deductions. What you actually claim under the old regime (80C capped at ₹1.5 lakh).
Compare the two totals. The calculator applies the correct FY 2025-26 slabs, standard deductions and rebates to each.
Pick the lower one — then verify. Use this for planning; confirm against incometax.gov.in before filing.
New regime FY 2025-26 (Budget 2025): 0–4L nil, 4–8L 5%, 8–12L 10%, 12–16L 15%, 16–20L 20%, 20–24L 25%, above 24L 30%; ₹75,000 standard deduction; 87A rebate → zero tax up to ₹12 lakh taxable income. Old regime: 0–2.5L nil, 2.5–5L 5%, 5–10L 20%, above 10L 30%; ₹50,000 standard deduction; 87A rebate up to ₹5 lakh. Both + 4% cess.
Worked example: ₹12 lakh salary with ₹1.5L 80C + ₹25k 80D. New regime: taxable ₹11.25L → rebate → ₹0. Old regime: taxable ₹9.75L → ₹1,07,500 + 4% cess = ₹1,11,800. New regime wins.
Slabs, rebates and standard deductions per Budget 2025 / Finance Act 2025; verify at incometax.gov.in.
Rough rule: if your total deductions (80C + 80D + HRA + others) exceed ~₹4–5 lakh, the old regime may win; otherwise the new regime's zero-tax-up-to-₹12L usually wins. The calculator does your exact math.
For salaried individuals: ₹12 lakh taxable income gets full 87A rebate, and the ₹75,000 standard deduction means gross salary up to ₹12.75 lakh can be tax-free. Marginal relief smooths the cliff just above.
Salaried individuals can choose each year when filing. Business owners who opt out of the new regime face restrictions on switching back — choose carefully.
No — surcharge (for very high incomes) isn't modelled. Above ~₹50 lakh income, consult the official calculator or a CA.
Not included — capital gains have their own rates (equity LTCG 12.5% above ₹1.25L, STCG 20%) and are computed separately.
Disclaimer: Planning illustration only — not tax advice. FY 2025-26 provisions per Budget 2025; surcharge and special incomes not modelled. Verify before filing at incometax.gov.in or consult a CA.