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💰 Finance ToolIncome Tax Calculator
Compare old vs new tax regime for FY 2025-26. Enter your salary and deductions — we show which regime saves more, instantly.
New vs old income tax regime — FY 2025-26
Budget 2025 made the new regime more attractive: income up to ₹12 lakh is effectively tax-free (via Section 87A rebate of ₹60,000), and standard deduction increased to ₹75,000. New regime slabs: 0% up to ₹4L, 5% ₹4–8L, 10% ₹8–12L, 15% ₹12–16L, 20% ₹16–20L, 25% ₹20–24L, 30% above ₹24L.
Old regime still wins when you have large deductions: ₹1.5L in 80C, HRA exemption, ₹2L home loan interest, and ₹25K health insurance together save ₹3.75L+ from taxable income. If your deductions exceed the break-even point (~₹3.75L for most), old regime remains better.
4% health and education cess
Both regimes add 4% cess on top of computed tax. Surcharge applies at 10% for income ₹50L–1Cr, 15% for ₹1–2Cr, 25% for ₹2–5Cr. This calculator covers standard cases without surcharge.
Salaried employees can switch regimes each financial year at the time of filing ITR. Business owners and professionals can only switch once (out of new regime). The new regime is the default from FY 2023-24 onwards — you must actively opt for the old regime.
Very few: ₹75,000 standard deduction, employer NPS contribution (Section 80CCD(2)), Agniveer corpus, gratuity, leave encashment. Notably missing: 80C, HRA exemption, 80D, home loan interest under Section 24.
Yes, under the new regime for FY 2025-26 — after ₹75,000 standard deduction, taxable income ≤₹12 lakh attracts zero net tax due to the enhanced Section 87A rebate of ₹60,000 (which fully offsets the computed tax). Income above ₹12L is taxed normally.