This calculator works out your India income tax for FY 2025-26 under both the new and old regimes, then tells you which one is lower for your salary and deductions.
Rates verified: July 2026
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India lets you choose between two tax systems each year, and the right choice depends entirely on your deductions. The new regime applies lower slab rates and a INR 75,000 standard deduction but removes almost all exemptions. The old regime keeps higher rates but lets you subtract deductions such as 80C, 80D, and HRA. This tool computes both and shows the cheaper option.
If you claim large deductions, for example a full 80C of INR 1,50,000 plus HRA and medical insurance, the old regime can come out ahead. If you claim little or nothing, the new regime almost always wins because of its lower rates and larger standard deduction. The only way to be sure is to compute both, which this calculator does automatically.
Under the old regime, Section 80C covers up to INR 1,50,000 of EPF, PPF, ELSS, insurance, and tuition. Section 80D covers medical insurance premiums. HRA and home loan interest can add more. Under the new regime, these are gone, replaced by the higher standard deduction and the generous rebate that makes income up to INR 12,00,000 tax free.
The Section 87A rebate is what makes the new regime so attractive at middle incomes. For FY 2025-26 it removes all tax on taxable income up to INR 12,00,000 under the new regime, and up to INR 5,00,000 under the old regime. Above those thresholds, normal slab rates apply and a 4% health and education cess is added on top.
It depends on your deductions. The new regime has lower rates and a large standard deduction but does not allow most exemptions. The old regime has higher rates but lets you claim deductions like 80C, 80D, and HRA. If your total deductions are large, the old regime often wins. If you claim few deductions, the new regime is usually lower.
For FY 2025-26 the standard deduction for salaried individuals is INR 75,000 under the new regime and INR 50,000 under the old regime. It is applied automatically to your salary before tax is calculated, so you do not need to provide any proof to claim it.
Yes. Under the new regime for FY 2025-26, a rebate under Section 87A means taxable income up to INR 12,00,000 pays no tax. With the INR 75,000 standard deduction, a salaried person earning up to about INR 12,75,000 can have zero tax, provided they choose the new regime.
Section 80C allows deductions up to INR 1,50,000 per year for investments and payments like EPF, PPF, ELSS funds, life insurance premiums, home loan principal, and children's tuition fees. It is only available under the old regime, not the new one.
A health and education cess of 4% is added to your income tax after any rebate, under both regimes. So if your tax works out to INR 50,000, the cess adds INR 2,000, making the total payable INR 52,000. This calculator includes the cess in the figures shown.
⚠️ Financial Disclaimer: Calculations on this site are for informational purposes only and do not constitute financial advice. Results are estimates based on published rates and may not reflect your individual circumstances. Always verify with official sources and consult a qualified professional before making financial decisions.