💰 Income Tax Calculator India (FY 2025-26)
Calculate your income tax for FY 2025-26 (AY 2026-27). Compare New vs Old Tax Regime, include deductions under 80C, 80D, HRA, and see exactly which regime saves you more money.
Assessment Year: 2026-27 | Financial Year: 2025-26 | Budget 2025 Updates Included
New Regime Slabs
0% - 30%
7 tax slabs
Old Regime Slabs
0% - 30%
4 tax slabs
87A Rebate
₹25,000
For income ≤ ₹7L
Max 80C Deduction
₹1.5L
Old Regime only
Tax Calculator
Income Details
Deductions (Old Regime)
Max ₹1.5 lakh under 80C
Max ₹25,000 (self) + ₹50,000 (senior parents)
Max ₹2 lakh for self-occupied property
New Tax Regime
FY 2025-26Default regime, lower rates
₹ 22,080
after rebate & cess
Old Tax Regime
With DeductionsHigher rates but deductions
₹ 54,600
after deductions & cess
New Regime is better for you. You save ₹32,520 by choosing New Regime.
Tax Breakdown
Tax Slabs Comparison (FY 2025-26)
New Regime
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 - ₹7,00,000 | 5% |
| ₹7,00,001 - ₹10,00,000 | 10% |
| ₹10,00,001 - ₹12,00,000 | 15% |
| ₹12,00,001 - ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Standard Deduction: ₹50,000
Old Regime
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 - ₹5,00,000 | 5% |
| ₹5,00,001 - ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Standard Deduction: ₹50,000
Rebate u/s 87A: Up to ₹25,000 tax rebate for income up to ₹7 lakh (New Regime) / ₹5 lakh (Old Regime)
Tax Saving Tips
- Maximize 80C with PPF, ELSS, or Tax-saving FDs
- Claim HRA even if you live with parents (pay rent to them)
- Health insurance premium under 80D saves tax
- NPS additional deduction under 80CCD(1B) - ₹50,000
- Home loan interest up to ₹2 lakh under Section 24
📚 Income Tax Guide for FY 2025-26
New Tax Regime (Default)
- Lower tax rates
- No major deductions (except 80CCD(2) & 80TTA)
- Simplified calculation
- Rebate up to ₹25,000 for income ≤ ₹7 lakh
Old Tax Regime
- Higher tax rates
- Multiple deductions (80C, 80D, HRA, etc.)
- Good for people with investments
- Rebate up to ₹12,500 for income ≤ ₹5 lakh
👥 Who Should Choose Which Regime?
| Situation | Recommended Regime |
|---|---|
| Few investments/deductions | New Regime |
| High 80C, 80D, HRA claims | Old Regime |
| Income ₹7-10 lakhs with deductions | Compare both (use calculator) |
| Income above ₹15 lakhs | Usually Old Regime if deductions > ₹3-4 lakhs |
❓ Income Tax FAQs
Which tax regime is better for salaried employees?
It depends on your deductions. Generally, if you have deductions > ₹3-4 lakhs, Old Regime may be better. Use our calculator to compare both regimes for your exact numbers. For most people with moderate investments (₹1.5-2 lakh deductions), New Regime often wins for income up to ₹15 lakhs.
What is the tax rebate under section 87A?
Under New Regime, if your taxable income is up to ₹7 lakh, you get a rebate of up to ₹25,000 - meaning zero tax. Under Old Regime, rebate is available for income up to ₹5 lakh (₹12,500 rebate). This rebate is deducted from your tax before cess.
How is HRA calculated?
HRA exemption is least of: 1) Actual HRA received, 2) Rent paid minus 10% of salary, 3) 50% of salary (metro cities) or 40% (non-metro). Our calculator includes a simplified HRA field - for exact calculation, use our dedicated HRA calculator.