Income Tax Calculator India — FY 2025-26 (AY 2026-27)
Our online tax calculator helps you compute your income tax liability under both the old and new regimes for FY 2025-26 (Assessment Year 2026-27), based on the slabs announced in Union Budget 2025. The displayed slabs apply to income earned between 1 April 2025 and 31 March 2026, which you will file as ITR in AY 2026-27. Whether you are looking for a quick new tax regime calculator or want to compare deductions under the old regime, this tool gives you accurate results in seconds — completely free.
Note: This page uses the current FY 2025-26 (AY 2026-27) slabs. Filing for last year? Use the AY 2025-26 calculator.
Compare Income Tax: Old Regime vs New Regime
The single biggest decision every taxpayer makes each financial year is choosing between the two regimes. To compare income tax correctly, enter your income once and the tool runs both calculations side by side. The new regime offers lower headline rates but removes most deductions; the old regime keeps higher rates but lets you claim a long list of exemptions.
Use the panel above as an old regime tax slab calculator when you have significant deductions to claim, or as a new tax regime tax calculator when your deductions are minimal. The tax calculation under the old regime rewards taxpayers who invest in instruments like PPF, ELSS and life insurance, pay home loan interest on a self-occupied house property, or claim HRA against rent. If your total deductions cross roughly ₹3.75 lakh in a financial year, the old regime usually wins; below that, the new regime is typically cheaper.
Deductions that favour the old regime
- Section 80C (₹1.5 lakh): PPF, ELSS, EPF, life insurance premium, principal on a home loan
- Section 24(b) (₹2 lakh): interest paid on a loan for a self-occupied house property
- Section 80D: health insurance premium for self and parents
- HRA & LTA: exemptions for salaried taxpayers living in rented homes
If you claim none of the above, the tax calculation under the old regime offers no advantage and the new regime is the simpler, lower-tax choice for that financial year.
Income Tax Slabs FY 2025-26
🆕 New Tax Regime (Default) — FY 2025-26
- 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%
Standard Deduction: ₹75,000 for salaried. Section 87A Rebate: Income up to ₹12 lakh is effectively tax-free.
📜 Old Tax Regime — FY 2025-26
Below 60 Years:
- Up to ₹2,50,000: Nil
- ₹2,50,001 - ₹5,00,000: 5%
- ₹5,00,001 - ₹10,00,000: 20%
- Above ₹10,00,000: 30%
Standard Deduction: ₹50,000. 87A Rebate: Income up to ₹5 lakh is tax-free.
Old vs New Regime — Which Should You Choose?
Choose New Regime if:
- You have minimal deductions (no home loan, no major 80C investments)
- You want simpler tax filing without tracking proofs
- Your income is between ₹7L-₹15L with few deductions
Choose Old Regime if:
- You have 80C ₹1.5L + HRA + NPS investments exceeding ₹3-4 lakh
- You're paying home loan interest (Section 24)
- You have health insurance premiums (80D)
- You donate to charity (80G)
Major Tax Deductions Available (Old Regime Only)
Section 80C — ₹1,50,000 limit
- PPF, ELSS, EPF, NSC, LIC premium, ULIP
- Children's tuition fees
- Home loan principal repayment
- 5-year tax-saving FD
Section 80CCD(1B) — Additional ₹50,000
Extra deduction for NPS contributions over and above 80C limit.
Section 80D — Health Insurance
- Self & family: up to ₹25,000
- Parents below 60: additional ₹25,000
- Senior citizen parents: additional ₹50,000
Section 24(b) — Home Loan Interest
Up to ₹2,00,000 deduction on interest paid on self-occupied home loan.
HRA Exemption
Minimum of: (a) Actual HRA received, (b) 50% of basic salary in metro, 40% in non-metro, (c) Rent paid - 10% of basic salary.
How Income Tax is Calculated — Step by Step
- Calculate Gross Total Income: Salary + business income + capital gains + other sources
- Apply Standard Deduction: ₹75K (New) or ₹50K (Old) for salaried
- Apply Section Deductions: 80C, 80D, 80CCD(1B), etc. (Old regime only)
- Calculate Taxable Income: Gross Income - Total Deductions
- Apply Tax Slabs: Calculate tax based on applicable slabs
- Apply 87A Rebate: If income within rebate limit
- Add Surcharge: 10% (₹50L+), 15% (₹1Cr+), 25% (₹2Cr+), 37% (₹5Cr+)
- Add Cess: 4% Health & Education Cess on tax + surcharge
Tax Saving Tips for FY 2025-26
- Max out 80C with ELSS funds (better returns than PPF in long term)
- Use 80CCD(1B) for additional ₹50K NPS deduction
- Get parents health insurance for extra 80D benefit
- Donate to PM Cares or registered NGOs for 80G
- Claim HRA if living in rented accommodation
- Plan home loan EMI for both 80C and Section 24 benefits
Compare Income Tax: Old vs New Regime for FY 2025-26 (Detailed)
The best way to compare income tax under both regimes for FY 2025-26 is to compute total tax at your exact taxable income, then subtract regime-specific benefits. Standard deduction of ₹75,000 under the new regime and ₹50,000 under the old regime is the first line every salaried Indian applies. From there, if you can claim housing loan interest under Section 24(b), 80C deductions on life insurance, PPF and ELSS, or HRA exemption on rent, the old regime often wins. For minimal deductions, the new regime with its ₹12 lakh rebate is unbeatable.
When you compare tax at ₹15 lakh gross salary with ₹3.5 lakh of old-regime deductions, the two regimes come out roughly even. Above that deduction level, old regime saves more; below it, new regime wins. This is the crossover to watch for.
For more, compare our old vs new regime decision guide and the new vs old tax calculator breakdown.Tax Calculation Old Regime: Step-by-Step for FY 2025-26
A full tax calculation old regime walkthrough starts from your gross salary (or business/profession income) and works down. Step one: subtract the ₹50,000 standard deduction (salaried only). Step two: apply eligible deductions — Section 80C up to ₹1.5 lakh, Section 80D health insurance up to ₹25,000 (or ₹50,000 for senior parents), Section 24(b) home loan interest up to ₹2 lakh on a self-occupied house, Section 80CCD(1B) NPS extra ₹50,000, and any HRA exemption if you pay rent. Step three: compute tax on the resulting taxable income using old regime slabs. Step four: apply the ₹12,500 87A rebate if your total income is below ₹5 lakh, then add 4% health and education cess.
Rental income from a let-out property adds to your taxable income under the head "Income from House Property" — but you can deduct 30% for maintenance plus the actual home loan interest paid, with no ₹2 lakh cap in the case of a let-out property. Capital gains follow their own rate structure — 12.5% LTCG on equity, 20% on real estate — and are computed separately.
New Tax Regime Tax Calculator: The ₹12 Lakh Rebate Explained
The FY 2025-26 new tax regime tax calculator centres on one number: ₹12 lakh. If your total income is at or below this threshold, Section 87A rebate wipes out your entire tax liability. Between ₹12 lakh and roughly ₹12.75 lakh, marginal relief keeps the extra tax modest. Above that, the full slab math kicks in.
Read our deep-dive on the ₹12 lakh rebate cliff, or see 4 real salaries compared across both regimes.The new tax regime slabs for FY 2025-26 (AY 2026-27) are: nil up to ₹4 lakh, 5% on ₹4–8 lakh, 10% on ₹8–12 lakh, 15% on ₹12–16 lakh, 20% on ₹16–20 lakh, 25% on ₹20–24 lakh, 30% above ₹24 lakh. Standard deduction of ₹75,000 for salaried; interest paid on employer NPS contribution is deductible under Section 80CCD(2) even in the new regime. Life insurance, HRA and 80C are not available in the new regime.
Old Regime Tax Slab Calculator: The Original Slab Structure
Our old regime tax slab calculator uses the pre-2020 slab structure that continues to run alongside the new regime for taxpayers who opt in. Slabs (below 60 years): nil up to ₹2.5 lakh, 5% on ₹2.5–5 lakh, 20% on ₹5–10 lakh, 30% above ₹10 lakh. Senior citizens (60–79) get a ₹3 lakh basic exemption; super senior citizens (80+) get ₹5 lakh. The old regime remains attractive for salaried employees with heavy housing loan interest, HRA and 80C claims.
Semantically Related Concepts
A complete view of your Indian income tax needs several concepts working together: your tax regime selection, your taxable income after standard deduction and eligible deductions, your tax rates per slab, your capital gains treatment, your rental income handling, and the applicable due date for advance tax and ITR filing. For AY 2026-27 the ITR filing due date is 31 July 2026 for salaried and 31 October 2026 for those requiring audit. The Income Tax Department also runs quarterly advance tax due dates (15 June, 15 September, 15 December, 15 March) for those with total tax liability above ₹10,000.
Business or profession income is computed under Chapter IV-D of the Income Tax Act — a different regime from salaried income, with expenses deductible against gross receipts. Interest paid on housing loans for a self-occupied property gives a Section 24(b) deduction up to ₹2 lakh; life insurance premium counts under Section 80C within the ₹1.5 lakh limit. Every taxpayer should submit their tax returns each tax year by the due date to avoid interest and late-filing penalties.