Free Tool · FY 2025-26 & 2026-27

Income Tax Calculator India — Old vs New Regime FY 2025-26

Free online income tax calculator for FY 2025-26 (AY 2026-27) and FY 2026-27. Compare Old vs New Tax Regime side-by-side — slab-wise breakdown with all major deductions (80C, 80D, HRA, home loan interest, NPS), surcharge and 4% cess. Built by CA Swapnil Soni, accurate per Budget 2025 rates.

📊 Enter Your Income & Deductions

Income
Deductions (Old Regime only)

Old Regime

₹0
VS

New Regime

₹0
You save ₹0 with the better regime

Old Regime Breakdown

Taxable Income
Base Tax
Rebate u/s 87A
Surcharge
Cess (4%)
Total Tax

New Regime Breakdown

Taxable Income
Base Tax
Rebate u/s 87A
Surcharge
Cess (4%)
Total Tax

*Indicative only. Consult CA Swapnil Soni for accurate ITR filing.

How Does This Income Tax Calculator Work?

This calculator computes your income tax liability under both the Old and New Tax Regimes for Financial Year 2025-26 (Assessment Year 2026-27) and FY 2026-27. Just enter your annual salary, other income sources, and any deductions you qualify for under the Old Regime. The calculator instantly shows you the tax under each regime along with a slab-wise breakdown, so you can pick the regime that saves you the most.

Income Tax Slabs FY 2025-26 — New Regime

Income RangeTax Rate
Up to ₹4,00,000Nil
₹4,00,001 – ₹8,00,0005%
₹8,00,001 – ₹12,00,00010%
₹12,00,001 – ₹16,00,00015%
₹16,00,001 – ₹20,00,00020%
₹20,00,001 – ₹24,00,00025%
Above ₹24,00,00030%

Standard deduction of ₹75,000 is available for salaried/pensioner taxpayers. Section 87A rebate of up to ₹60,000 makes income up to ₹12 lakh effectively tax-free.

Income Tax Slabs FY 2025-26 — Old Regime (Below 60 years)

Income RangeTax Rate
Up to ₹2,50,000Nil
₹2,50,001 – ₹5,00,0005%
₹5,00,001 – ₹10,00,00020%
Above ₹10,00,00030%

The Old Regime allows you to claim 80C (up to ₹1.5L), 80D health insurance, HRA, home loan interest (up to ₹2L for self-occupied), NPS 80CCD(1B), education loan interest, and other deductions. Use the calculator above to see if these deductions can beat the New Regime's lower rates.

Deductions Available Under the Old Regime

How to Choose Between Old and New Tax Regime

The general rule of thumb:

Worked Example 1 — Salary ₹10 Lakh, Minimal Deductions

Suppose you're a 28-year-old salaried employee earning ₹10,00,000 a year with no home loan and only ₹50,000 invested in PPF (80C).

Under the New Regime

Salary minus ₹75,000 standard deduction = ₹9,25,000 taxable.

Under the Old Regime

Salary − ₹50,000 std − ₹50,000 (80C) = ₹9,00,000 taxable.

Verdict: New Regime saves ₹96,200. Confirmed by the calculator above.

Worked Example 2 — Salary ₹18 Lakh with HRA + Home Loan

Suppose you're 35, earning ₹18,00,000, paying ₹3,60,000 rent (HRA-exempt ₹2,40,000), with a ₹2,00,000 home loan interest (let-out), ₹1,50,000 80C, ₹25,000 80D, and ₹50,000 NPS contribution.

Under the New Regime

Salary − ₹75,000 std = ₹17,25,000 taxable.

Under the Old Regime

Salary ₹18,00,000 − ₹50,000 std − ₹2,40,000 HRA − ₹1,50,000 (80C) − ₹25,000 (80D) − ₹2,00,000 home loan − ₹50,000 NPS = ₹10,85,000 taxable.

Verdict: Old Regime saves ₹48,880 in this scenario thanks to HRA + home loan + 80C deductions.

Standard Deduction FY 2025-26 — At a Glance

RegimeStandard DeductionAvailable For
New Regime₹75,000Salaried & pensioners
Old Regime₹50,000Salaried & pensioners

Section 87A Rebate FY 2025-26

The Section 87A tax rebate makes income up to a threshold effectively tax-free:

Surcharge Rates on Income Tax (FY 2025-26)

Taxable IncomeSurcharge — Old RegimeSurcharge — New Regime
Up to ₹50 lakhNilNil
₹50L – ₹1 Cr10%10%
₹1 Cr – ₹2 Cr15%15%
₹2 Cr – ₹5 Cr25%25%
Above ₹5 Cr37%25% (capped)

Health & Education Cess of 4% is levied on (tax + surcharge) in both regimes.

Why Use TaxMitra's Income Tax Calculator?

Frequently Asked Questions

Which tax regime is better — Old or New — for FY 2025-26?

There is no universal answer. The New Tax Regime offers lower slab rates and a higher standard deduction (₹75,000) but disallows most deductions. The Old Regime keeps higher rates but allows 80C, 80D, HRA, home loan interest, and others. Use this calculator to compare both for your specific income.

What is the standard deduction under the New Regime for FY 2025-26?

Under the New Tax Regime for FY 2025-26, salaried employees and pensioners get a standard deduction of ₹75,000 (increased from ₹50,000 in Budget 2024).

What is the Section 87A rebate under the New Regime?

Under the New Tax Regime, taxpayers with taxable income up to ₹12 lakh can claim a rebate of up to ₹60,000 under Section 87A, effectively making income up to ₹12 lakh tax-free.

Is HRA exemption available in the New Tax Regime?

No. House Rent Allowance (HRA) exemption is not available under the New Tax Regime. It is only available under the Old Tax Regime.

What is the surcharge rate for high incomes?

Surcharge applies on tax (not income) when taxable income exceeds ₹50 lakh. Rates: 10% (₹50L–1Cr), 15% (₹1Cr–2Cr), 25% (₹2Cr–5Cr). Above ₹5Cr: 25% under New Regime, 37% under Old Regime.

Are the calculator results legally binding?

No. This calculator provides indicative estimates only. For accurate tax planning and ITR filing, consult CA Swapnil Soni or a qualified Chartered Accountant.

How is taxable income calculated for salaried employees?

Taxable income = Gross salary − Standard deduction (₹75K New / ₹50K Old) − HRA exemption (Old only) − other allowances exempt under Section 10 − all eligible Chapter VI-A deductions (Old only). The result is then taxed slab-wise.

Can I switch between Old and New regime every year?

Yes, salaried taxpayers can switch each year while filing ITR. Business and professional income earners can switch only once back to the Old Regime after opting for the New Regime — choose carefully.

What is the maximum 80C deduction for FY 2025-26?

₹1,50,000 combined across all eligible items (PPF, ELSS, EPF, LIC, NSC, tax-saver FD, home loan principal, tuition fees, etc.). Available only under the Old Regime.

How is HRA exemption calculated?

HRA exemption is the LEAST of: (a) actual HRA received, (b) rent paid minus 10% of basic salary, (c) 50% of basic salary in metro cities (40% non-metro). Available only under the Old Regime.

Is the calculator updated for Budget 2025?

Yes. This calculator uses the FY 2025-26 (AY 2026-27) slab rates announced in Budget 2025, including the new ₹75,000 standard deduction and ₹60,000 Section 87A rebate under the New Regime.

How accurate is this online tax calculator?

The slab calculations, rebate, surcharge, and cess logic are exactly per the Income Tax Act provisions for FY 2025-26. Results match what your CA would compute given the same inputs. That said, real-world ITR filing may involve TDS adjustments, advance tax, foreign income, capital gains specifics, etc. — consult a CA for filing.

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