The new tax regime underwent a major overhaul in Budget 2023 and has been the default regime since FY 2023-24. The new tax regime tax calculator for FY 2025-26 (AY 2026-27) helps you compute your tax liability quickly — with the updated slabs, standard deduction, and rebate provisions built in.
New Tax Regime Slabs for FY 2025-26
| Income Range | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹7,00,000 | 5% |
| ₹7,00,001 – ₹10,00,000 | 10% |
| ₹10,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
For income up to ₹7 lakh: Section 87A rebate makes the effective tax = ₹0. For salaried: standard deduction of ₹75,000 further reduces taxable income.
Standard Deduction Under New Regime
From FY 2024-25, salaried employees get a ₹75,000 standard deduction under the new regime (up from ₹50,000). This means a salaried person with gross salary up to ₹7,75,000 pays zero income tax under the new regime.
Who Benefits From the New Tax Regime?
The new regime is generally better for:
- Individuals with low deductions — no home loan, minimal 80C investments, no HRA
- Those earning under ₹7.75 lakh (effectively zero tax)
- Young professionals just starting careers with fewer investments
- Self-employed professionals who don't claim business deductions under Chapter VIA
What You Cannot Claim in the New Regime
- Section 80C (PPF, ELSS, EPF, LIC premium — up to ₹1.5 lakh)
- Section 80D (health insurance premium)
- HRA exemption (House Rent Allowance)
- LTA (Leave Travel Allowance)
- Interest on housing loan (Section 24b)
- Professional tax deduction
If your total deductions under the old regime exceed ₹1.5–2 lakh, the old regime often wins. Use our new tax regime tax calculator above to enter your exact deductions and find out.
New Tax Regime: Tax at Common Salary Levels
| Gross Salary | Taxable Income | New Regime Tax |
|---|---|---|
| ₹5,00,000 | ₹4,25,000 | ₹0 (87A rebate) |
| ₹7,75,000 | ₹7,00,000 | ₹0 (87A rebate) |
| ₹10,00,000 | ₹9,25,000 | ₹37,500 + 4% cess |
| ₹15,00,000 | ₹14,25,000 | ₹1,12,500 + 4% cess |
| ₹20,00,000 | ₹19,25,000 | ₹2,62,500 + 4% cess |