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

For FY 2025-26 (AY 2026-27), India’s New Tax Regime is the default — it has lower slab rates and a generous Section 87A rebate that makes income up to ₹12 lakh (₹12.75 L for salaried) entirely tax-free. But the Old Regime can still win if you have heavy 80C, 80D, HRA and home loan interest deductions. This calculator runs both — and tells you which to pick.

Income Tax Calculator (Old vs New Regime)

Compare tax under both regimes for FY 2025-26 — and see which one saves you the most.

Currency: ₹ INR(India-focused)

Deductions (Old Regime only)

Tax Comparison FY 2025-26

Recommended Regime–
Tax — New Regime–
Tax — Old Regime–
Savings by Choosing Best–
Effective Tax Rate–
Take-home (annual)–

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New Regime — FY 2025-26 Slabs (post-Budget 2025)

Income SlabTax 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%

Plus 4% Health & Education Cess on tax. Standard deduction of ₹75,000 for salaried. Section 87A rebate makes tax zero up to ₹12 lakh taxable income.

Old Regime — FY 2025-26 Slabs

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

Standard deduction ₹50,000. 80C ₹1,50,000 + 80D + NPS ₹50,000 + HRA + Home loan interest (₹2 L) + 80E (education loan) + 80G (donations). Section 87A rebate up to ₹5 lakh taxable income.

Which Regime Wins for You?

Quick rules of thumb:

  • Income up to ₹12 lakh: New Regime almost always wins (zero tax due to 87A).
  • Income ₹12–25 lakh with heavy deductions (₹4 L+): Old Regime often wins.
  • Income ₹12–25 lakh with light deductions: New Regime usually wins.
  • Income above ₹25 lakh: Run the calculator — depends on actual deductions.
  • Self-employed without HRA / 80C planning: New Regime wins overwhelmingly.

Worked Example

Example: Salary ₹15 lakh, ₹1.5 L 80C + ₹25K 80D + ₹50K NPS = ₹2.25 L deductions. New Regime: ₹15L − ₹75K = ₹14.25L taxable → tax ₹1,30,000 + cess = ₹1,35,200. Old Regime: ₹15L − ₹50K SD − ₹2.25 L deductions = ₹12.25 L → tax ₹1,80,000 + cess = ₹1,87,200. New Regime saves ₹52,000.

Frequently Asked Questions

Can I switch regimes every year?▾
Salaried individuals can switch every year. Business / self-employed individuals can switch only once between regimes — choose carefully.
Is the New Regime really better for everyone?▾
Not for anyone with heavy Old Regime deductions. If your 80C+80D+HRA+24b+80CCD totals more than ~₹3.5–4 lakh, Old usually wins. Below that, New wins.
Is HRA exemption available in the New Regime?▾
No. HRA, LTA, and most chapter VI-A deductions are not allowed in the New Regime. Only standard deduction (₹75K) and employer NPS contribution under 80CCD(2) carry over.
Does this calculator cover surcharge?▾
Not yet — it computes basic tax + 4% cess. Surcharge of 10/15/25/37% kicks in above ₹50 L / ₹1 cr / ₹2 cr / ₹5 cr respectively. The Budget 2025 also capped surcharge at 25% under New Regime.
What about senior citizens (60+ / 80+)?▾
In the Old Regime, senior citizens (60–80) get higher basic exemption (₹3 L) and super seniors (80+) get ₹5 L. The New Regime is the same for everyone. The calculator currently uses standard rates — for senior citizen Old Regime, subtract the additional ₹50K / ₹2.5 L from your taxable income.

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