India · Tax
Income Tax Calculator
Compare old and new tax regimes for FY 2025-26 / AY 2026-27 using salary income, slab-rate income, and key deductions.
Interactive calculator
Calculate income tax for FY 2025-26
Calculate and compare tax liability under Old vs. New Tax Regimes using updated slab rates and exemption rules.
Results
Recommended Regime
New Regime
Regime Tax Savings
₹1,45,600
New Regime Tax
₹1,50,800
Old Regime Tax
₹2,96,400
Old regime summary
Taxable Income
₹15,75,000
Total Tax
₹2,96,400
Cess: ₹11,400
Deductions Claimed
₹2,25,000
Slab Base Tax
₹2,85,000
Rebate / Relief
₹0
New regime summary
Taxable Income
₹17,25,000
Total Tax
₹1,50,800
Cess: ₹5,800
Deductions Claimed
₹75,000
Slab Base Tax
₹1,45,000
Rebate / Relief
₹0
Breakeven Analysis
Old vs. New Regime Breakeven Deductions
For your gross salary of ₹18,00,000, you need a total of ₹6,41,667 in eligible Old Regime deductions (including standard deduction) to match the New Regime tax liability.
Old Regime Active Slabs & Computed Tax
New Regime Active Slabs & Computed Tax
How to use it
- 01Enter your annual salary and any additional slab-rate taxable income.
- 02Fill only the deductions supported by this version, including standard deduction, 80C, 80D, home loan interest, and already-computed eligible extras.
- 03Compare the total tax under both regimes and review the savings difference.
Result guide
- The comparison includes 4% health and education cess after rebate or relief.
- The calculator supports slab-rate income only and excludes special-rate items like capital gains.
- Above Rs. 50 lakh, surcharge is not included in this launch version.
About this calculator
A production tax calculator needs date-bound rules. This one is scoped to FY 2025-26, covering income earned from April 1, 2025 to March 31, 2026 and assessed in AY 2026-27.
The main purpose is to compare old and new regimes with a realistic but explicit deduction set instead of pretending to cover every special-case tax rule in one screen.
Frequently asked questions
What is the difference between old and new tax regime?
The old tax regime permits taxpayers to claim multiple exemptions and deductions under sections like 80C, 80D, and HRA, but applies higher progressive tax slabs. Conversely, the new tax regime (under Section 115BAC) offers lower, simplified tax rates but requires the taxpayer to forfeit most of these exemptions, with the exception of the standard deduction of ₹75,000 and employer pension contributions under Section 80CCD(2).
Which regime is better for salaried employees?
The choice depends on the total tax deductions a salaried employee can claim. Generally, the new tax regime is more beneficial for individuals who do not make substantial tax-saving investments. For FY 2025-26, the breakeven threshold of deductions is ₹3,75,000 for an income of ₹15,00,000. If your eligible deductions under the old regime exceed ₹3,75,000, the old regime is better; otherwise, the new regime is more tax-efficient.
How is income tax calculated in India for FY 2025-26?
Income tax is calculated by applying progressive tax slab rates to your net taxable income after subtracting standard deductions (₹75,000 for the new regime, ₹50,000 for the old regime) and other eligible exemptions. Under the new regime for FY 2025-26, income up to ₹4,00,000 is tax-free, ₹4,00,001 to ₹8,00,000 is taxed at 5%, ₹8,00,001 to ₹12,00,000 at 10%, ₹12,00,001 to ₹16,00,000 at 15%, and ₹16,00,001 to ₹24,00,000 at 20%. A 4% health and education cess is added to the computed tax.
What is the tax on ₹12 lakh salary under new regime?
For FY 2025-26, a salaried individual with an annual income of ₹12,00,000 receives a standard deduction of ₹75,000 under the new regime, reducing the taxable income to ₹11,25,000. Tax on this amount is calculated across slabs: ₹0 to ₹4,00,000 is exempt (₹0); ₹4,00,001 to ₹8,00,000 is taxed at 5% (₹20,000); and ₹8,00,001 to ₹11,25,000 is taxed at 10% (₹32,500). The base tax is ₹52,500, plus a 4% cess of ₹2,100, totaling ₹54,600.
What deductions reduce taxable income under old regime?
Under the old regime, key deductions include Section 80C up to ₹1,50,000 (covering EPF, PPF, ELSS, and home loan principal), Section 80D up to ₹25,000 for health insurance premiums (or ₹50,000 for senior citizens), Section 24(b) up to ₹2,00,000 for home loan interest, and House Rent Allowance (HRA) exemptions under Section 10(13A) which are computed based on actual rent paid, salary, and location.
Method and limitations
This calculator uses the formula and assumptions described on this page. We do not claim independent professional review. Direct references will be listed here when they support a specific rule or data source used by this calculator.
Results are estimates for general information. Verify current rules and assumptions before making financial, tax, or health decisions.
Read our Editorial and Verification Policy →Related calculators
Keep the next question one click away.
Old Tax Regime Calculator
Estimate old-regime tax for FY 2025-26 / AY 2026-27 with standard deduction, 80C, 80D, and home loan interest support.
New Tax Regime Calculator
Estimate new-regime tax for FY 2025-26 / AY 2026-27 with current slab rates, standard deduction, rebate, and marginal relief.
In-Hand Salary Calculator
Estimate annual and monthly in-hand salary after employee PF, professional tax, and current FY 2025-26 income tax.