Tax
FY 2025-26Income Tax Calculator
Compare your tax liability under the Old and New regime for FY 2025-26. Updated for Budget 2025 — ₹12 lakh zero-tax under new regime.
New Regime saves you more
You save ₹86,840 per year by choosing the New Regime
Old Regime Deductions
Total Tax Payable
₹0
Taxable Income
₹11.25 L
Std. Deduction
–₹75,000
Rebate 87A
–₹52,500
Cess (4%)
₹0
Effective Rate
0.00%
Take-Home
₹12.00 L
Quick comparison
New Regime Tax
₹0
✓ Lower tax
Old Regime Tax
₹86,840
FY 2025-26 Tax Slabs
New Regime
| Income Slab | Tax Rate |
|---|---|
| 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% |
Rebate u/s 87A: Full tax rebate if net income ≤ ₹12 lakh (max ₹60,000)
Old Regime (below 60)
| Income Slab | Tax Rate |
|---|---|
| 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% |
Rebate u/s 87A: Rebate up to ₹12,500 if net income ≤ ₹5 lakh. Deductions apply.
Frequently asked questions
Is ₹12 lakh really tax-free under the new regime?
Yes — for FY 2025-26, if your net taxable income (after ₹75,000 standard deduction) is ₹12 lakh or less, the full tax is rebated under Section 87A. So a salary of up to ₹12.75 lakh effectively has zero income tax.
Which regime should I choose?
For most salaried individuals with income under ₹15 lakh and limited deductions, the New Regime now saves more tax. If you have large 80C investments, home loan interest, and HRA — run both scenarios using this calculator to decide.
Is standard deduction available in the new regime?
Yes. Budget 2024 extended the ₹75,000 standard deduction to the new regime as well (previously only in old regime). This is already factored into this calculator.
What is the surcharge on income above ₹50 lakh?
A surcharge applies: 10% for income ₹50L–₹1Cr, 15% for ₹1Cr–₹2Cr, 25% for ₹2Cr–₹5Cr, and 37% above ₹5Cr (capped at 25% under new regime for most cases). This calculator includes surcharge automatically.
Income tax in India for FY 2025-26: what changed
Union Budget 2025 brought significant changes to the New Tax Regime. The most important change: individuals with net taxable income up to ₹12 lakh now pay zero income tax under the New Regime, thanks to an enhanced Section 87A rebate of ₹60,000. For salaried individuals, this effectively means zero tax up to ₹12.75 lakh (after the ₹75,000 standard deduction).
The New Regime also introduced revised tax slabs with lower rates across all income brackets. The 30% slab now kicks in only above ₹24 lakh (previously ₹15 lakh). This makes the New Regime significantly more attractive for most salaried individuals.
Old Regime vs New Regime: who should choose what?
The Old Regime allows deductions under 80C (₹1.5L), 80D (health insurance), HRA, home loan interest, and NPS. If your total deductions exceed approximately ₹4–5 lakh, the Old Regime may still save more tax. For most people with income under ₹15 lakh and limited deductions, the New Regime is now better.
Want to maximise your tax savings? Read our complete tax saving guide for FY 2025-26.