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💰 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.

100% Free Instant Results Mobile Friendly Regime Comparison Budget 2025

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 2025-26

Default regime, lower rates

22,080

after rebate & cess

Taxable Income 11,50,000
Effective Tax Rate 1.9%

Old Tax Regime

With Deductions

Higher rates but deductions

54,600

after deductions & cess

Taxable Income 8,80,000
You Save ₹ 32,520

New Regime is better for you. You save ₹32,520 by choosing New Regime.

Tax Breakdown

Gross Total Income₹ 12,50,000
Total Deductions₹ 2,55,000
Tax Before Cess₹ 52,500
Health & Edu Cess (4%)₹ 2,100
Surcharge₹ 0
Final Tax Liability₹ 54,600

Tax Slabs Comparison (FY 2025-26)

New Regime

Up to ₹3,00,000Nil
₹3,00,001 - ₹7,00,0005%
₹7,00,001 - ₹10,00,00010%
₹10,00,001 - ₹12,00,00015%
₹12,00,001 - ₹15,00,00020%
Above ₹15,00,00030%

Standard Deduction: ₹50,000

Old Regime

Up to ₹2,50,000Nil
₹2,50,001 - ₹5,00,0005%
₹5,00,001 - ₹10,00,00020%
Above ₹10,00,00030%

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?

SituationRecommended Regime
Few investments/deductionsNew Regime
High 80C, 80D, HRA claimsOld Regime
Income ₹7-10 lakhs with deductionsCompare both (use calculator)
Income above ₹15 lakhsUsually 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.