Income Tax Calculator
Compare old vs new tax regime and calculate your income tax liability for FY 2025-26.
Your total annual gross income
80C + HRA + NPS + other deductions
Old Regime
Taxable Income
₹6,50,000
Total Tax
₹44,200
Effective Rate
5.5%
New Regime
Better for youTaxable Income
₹7,25,000
Total Tax
₹23,400
Effective Rate
2.9%
Tax saving with New Regime: ₹20,800
Formula
Tax = Slab Rate × (Income - Deductions) + 4% Cess
- Old Regime — Slabs: 0%, 5%, 20%, 30% with deductions (80C, HRA, NPS etc.)
- New Regime — Slabs: 0%, 5%, 10%, 15%, 20%, 30% with ₹75,000 standard deduction only
- Cess — 4% Health and Education Cess on total income tax
- 87A Rebate — Old: full rebate if income ≤ ₹5L. New: full rebate if income ≤ ₹7L
Income Tax Calculation in India FY 2025-26
India has two income tax regimes for individual taxpayers — the old regime and the new regime. The old regime allows various deductions and exemptions such as 80C investments, HRA, NPS contributions, and home loan interest, which reduce your taxable income significantly. The new regime offers lower tax rates but allows only a standard deduction of Rs. 75,000 with no other exemptions.
Under the old regime for FY 2025-26, income up to Rs. 2.5 lakh is exempt from tax. Income between Rs. 2.5 lakh and Rs. 5 lakh is taxed at 5%, between Rs. 5 lakh and Rs. 10 lakh at 20%, and above Rs. 10 lakh at 30%. A rebate under Section 87A means that if your taxable income is up to Rs. 5 lakh, you pay zero tax.
New Tax Regime Slabs FY 2025-26
The new regime has more granular slabs. Income up to Rs. 3 lakh is exempt. From Rs. 3 lakh to Rs. 7 lakh the rate is 5%, from Rs. 7 lakh to Rs. 10 lakh it is 10%, from Rs. 10 lakh to Rs. 12 lakh it is 15%, from Rs. 12 lakh to Rs. 15 lakh it is 20%, and above Rs. 15 lakh it is 30%. Under the new regime, if your taxable income is up to Rs. 7 lakh after the standard deduction, you pay zero tax due to the Section 87A rebate.
Which Regime is Better for You?
The choice between old and new regime depends on your deductions. If you have significant investments under 80C (up to Rs. 1.5 lakh), HRA exemption, NPS contribution under 80CCD, and home loan interest deduction, the old regime often results in lower tax. However, if your deductions are minimal, the new regime with its lower rates and higher rebate limit of Rs. 7 lakh can be more beneficial. Our calculator automatically compares both regimes and highlights the better option for your specific income and deduction combination.