Income Tax Calculator
FY 2025-26 (AY 2026-27) — Compare Old vs New Tax Regime and find which saves you more
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Old vs New Tax Regime — FY 2025-26
The Budget 2025 has made the New Tax Regime the default regime with revised slabs and a higher standard deduction of ₹75,000. However, the Old Regime can still be better if you have significant deductions like HRA, 80C investments, and home loan interest.
New Tax Regime Slabs FY 2025-26
| 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% |
Special rebate under Section 87A: Tax is nil if net taxable income ≤ ₹12,00,000 under New Regime (₹5,00,000 under Old Regime for general category).
Frequently Asked Questions
Salaried individuals can switch between the two regimes every financial year when filing their ITR. However, if you have business income, you can switch back to the old regime only once in your lifetime.
Under the New Regime, if your net taxable income is up to ₹12 lakh, your tax liability becomes nil due to the Section 87A rebate of ₹60,000. Under the Old Regime, the rebate is ₹12,500 for income up to ₹5 lakh.
Generally: New Regime is better if your total deductions are under ₹3.75 lakh. Old Regime is better if you have significant deductions (HRA + 80C + 80D + home loan interest) exceeding ₹3.75 lakh. Use this calculator to compare your specific situation.
Yes. Standard deduction of ₹75,000 is available in the New Regime (increased from ₹50,000 in Budget 2024). Standard deduction of ₹50,000 is available in the Old Regime. This is automatically applied in our calculator.