Calculate your exact income tax for FY 2025-26 (Tax Year 2026-27) under old vs new regime. Find which regime saves you more and optimize your salary structure.
The new tax regime is the default for FY 2025-26. With a ₹75,000 standard deduction and ₹60,000 rebate under Section 87A, income up to ₹12.75 lakh is effectively tax-free.
| Taxable Income | 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% |
Note: 4% Health and Education Cess applies on total tax. Surcharge applies on incomes above ₹50 lakh.
If you are a salaried employee in India, understanding how your income tax is calculated can help you make smarter financial decisions and potentially save thousands of rupees each year.
Your gross salary includes basic pay, House Rent Allowance (HRA), Leave Travel Allowance (LTA), special allowances, and any other components. This is the starting point for tax calculation.
For FY 2025-26, the new tax regime is default. If you have significant deductions (home loan, HRA, 80C investments), the old regime may save more. Use our calculator to compare both instantly. The new regime is beneficial if your total deductions are below ₹3-4 lakh.
Under the old regime, subtract: Standard Deduction (₹50,000), HRA exemption (if renting), Section 80C (up to ₹1.5 lakh), Section 80D health insurance, NPS contribution (₹50,000 extra), and home loan interest (up to ₹2 lakh). These together can reduce taxable income by ₹3-5 lakh.
Apply the applicable tax slabs to your taxable income. Add 4% cess. Check if the Section 87A rebate of ₹60,000 (new regime) or ₹12,500 (old regime) applies. If your total tax (before cess) is less than the rebate limit, you pay zero tax.