Income Tax Calculator FY 2025-26
Compare Old vs New Tax Regime & Find Your Best Option
⚠️ Calculations are for illustrative purposes. Excludes surcharge on income above ₹50 lakh. Please consult a tax professional.
📋 Income Tax Calculator FY 2025-26: Your Complete Guide
Planning your taxes doesn't have to be complicated. Our free online Income Tax Calculator helps you instantly compare your tax liability under both the Old Tax Regime and the New Tax Regime for the Financial Year 2025-26 (Assessment Year 2026-27). Simply enter your annual income and deductions to see which regime saves you more money.
🆚 Old Tax Regime vs New Tax Regime: What's the Difference?
The Indian government introduced the New Tax Regime to simplify the tax structure with lower rates but fewer deductions. The Old Tax Regime offers higher tax rates but allows you to claim various deductions and exemptions. Choosing the right regime depends on your income level and the deductions you can claim.
📊 New Tax Regime Slabs (FY 2025-26)
| Income Slab (₹) | Tax Rate |
|---|---|
| 0 – 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% |
Standard Deduction: ₹75,000 | Rebate u/s 87A: Full tax rebate for income up to ₹12,00,000 | Health & Education Cess: 4% on tax
📊 Old Tax Regime Slabs (FY 2025-26)
| Income Slab (₹) | Tax Rate |
|---|---|
| 0 – 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 ₹12,500 for taxable income up to ₹5,00,000 | Health & Education Cess: 4% on tax
💡 How to Use This Income Tax Calculator
- Enter Your Annual Gross Income: Input your total yearly earnings from all sources before any deductions.
- Enter Total Deductions: Add up all your eligible deductions under sections like 80C, 80D, HRA, home loan interest, etc. This applies to the Old Regime calculation.
- Click "Calculate My Tax Now": The tool instantly computes your tax under both regimes.
- Compare & Decide: See which regime results in lower tax and follow the recommendation.
🤔 Which Tax Regime Should You Choose?
Here's a simple guideline to help you decide:
- Choose the New Regime if: You have few deductions (less than ₹2-3 lakh), your income is below ₹12 lakh, or you prefer a simpler tax filing process.
- Choose the Old Regime if: You claim significant deductions (₹3 lakh+), have a home loan with high interest, contribute heavily to EPF/PPF/NPS, or have high health insurance premiums.
Our calculator above gives you exact numbers so you can make an informed decision based on your specific situation.
📌 Common Tax-Saving Deductions (Old Regime)
- Section 80C: Up to ₹1,50,000 – Includes EPF, PPF, ELSS, NSC, life insurance premiums, tuition fees, home loan principal repayment, and more.
- Section 80D: Health insurance premium – Up to ₹25,000 (self/family) and additional ₹25,000 (parents), or ₹50,000 for senior citizen parents.
- Section 24(b): Interest on home loan – Up to ₹2,00,000 for self-occupied property.
- Section 80TTA: Interest on savings account – Up to ₹10,000.
- HRA Exemption: House Rent Allowance exemption for salaried individuals living in rented accommodation.
- Standard Deduction: Flat ₹50,000 for salaried individuals and pensioners (auto-applied in our calculator).
❓ Frequently Asked Questions
🔹 Is the standard deduction available in the New Tax Regime?
Yes! From FY 2024-25 onwards, the standard deduction of ₹75,000 is available in the New Tax Regime for salaried individuals and pensioners. This continues for FY 2025-26.
🔹 What is the rebate under Section 87A in the New Regime?
Under the New Tax Regime, if your gross income is ₹12,00,000 or below, you get a full tax rebate, making your tax liability zero. This is a significant benefit for middle-income earners.
🔹 What is marginal relief in the New Tax Regime?
If your income slightly exceeds ₹12,00,000, marginal relief ensures your tax doesn't exceed the amount by which your income crosses ₹12 lakh. For example, if you earn ₹12,10,000, your tax is capped at ₹10,000 (plus cess).
🔹 Can I switch between regimes every year?
Yes! You can choose between the Old and New Tax Regime every financial year based on what benefits you more. Salaried individuals can inform their employer, while others can choose at the time of filing their ITR.
🔹 Does this calculator include surcharge?
No, this calculator excludes surcharge (applicable on income above ₹50 lakh) to keep calculations straightforward. For high-income earners, please consult a tax professional for precise calculations including surcharge.
