Income Tax Calculator – Old vs New Regime (FY 2025-26)
Compare old and new tax regimes for FY 2025-26 and see which one saves you more. Calculated instantly in your browser.
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Better regime
New regime
- You save
- ₹1,05,300
- Tax: new regime
- ₹97,500
- Tax: old regime
- ₹2,02,800
- Effective rate (new)
- 6.5%
- Effective rate (old)
- 13.52%
- FY 2025-26 (AY 2026-27) resident individual. Salary income assumed; capital gains and special-rate incomes are not modelled.
- Verify with official sources (incometax.gov.in). This is not tax advice.
Regime-wise computation
| Item | New regime | Old regime |
|---|---|---|
| Gross income | ₹15,00,000 | ₹15,00,000 |
| Standard deduction | -₹75,000 | -₹50,000 |
| Employer NPS 80CCD(2) | ₹0 | ₹0 |
| 80C | ₹0 | -₹1,50,000 |
| 80D | ₹0 | -₹25,000 |
| HRA exemption | ₹0 | ₹0 |
| Home-loan interest 24(b) | ₹0 | ₹0 |
| NPS 80CCD(1B) | ₹0 | ₹0 |
| Taxable income | ₹14,25,000 | ₹12,75,000 |
| Tax on slabs | ₹93,750 | ₹1,95,000 |
Disclaimer: Verify with official sources (incometax.gov.in). This calculator is for estimation only and is not tax advice. Tax laws change; consult a qualified professional.
How it's calculated
Taxable income = Gross − standard deduction − eligible deductions
Tax = slab tax − 87A rebate (+ surcharge)
Total = (Tax + surcharge) × 1.04 (4% cess)
New regime slabs are applied after deducting ₹75,000 and employer NPS; the 87A rebate makes tax nil up to ₹12 lakh taxable income, with marginal relief just above it. Old regime slabs (₹2.5/5/10 lakh) are applied after the ₹50,000 standard deduction and chapter VI-A deductions, with a rebate up to ₹5 lakh taxable income.
Assumptions
- Resident individual, salary income.
- 80D capped at ₹1 lakh as a simplification (actual limits depend on age of self and parents).
- HRA exemption is the amount you computed; this tool does not calculate it.
- Surcharge computed on total taxable income with marginal relief at thresholds.
How to use this calculator
- Enter income. Type your annual gross salary or income.
- Add old-regime deductions. Enter 80C, 80D, HRA, home-loan interest and NPS amounts.
- Select age group. Choose your age group for old-regime exemption limits.
- Compare. See which regime wins and by how much.
Frequently asked questions
What are the new regime slabs for FY 2025-26?
Up to ₹4 lakh nil; ₹4-8 lakh 5%; ₹8-12 lakh 10%; ₹12-16 lakh 15%; ₹16-20 lakh 20%; ₹20-24 lakh 25%; above ₹24 lakh 30%. A standard deduction of ₹75,000 is allowed for salaried taxpayers.
Is income up to ₹12 lakh really tax-free?
Under the new regime, resident individuals with taxable income up to ₹12 lakh get a Section 87A rebate of up to ₹60,000, making tax nil. For salaried people, that means gross salary up to ₹12.75 lakh after the ₹75,000 standard deduction. The rebate does not apply to special-rate income such as certain capital gains.
What is marginal relief?
If taxable income is just above ₹12 lakh, the tax is limited to the amount by which income exceeds ₹12 lakh, so you never pay more tax than the extra income earned over the threshold.
Which deductions work only in the old regime?
80C (up to ₹1.5 lakh), 80D medical insurance, HRA exemption, home-loan interest on a self-occupied property under 24(b) (up to ₹2 lakh), 80CCD(1B) NPS (₹50,000), LTA and others. The new regime allows the standard deduction and employer NPS contribution under 80CCD(2).
Which regime should I choose?
Typically, if your total old-regime deductions (including standard deduction) exceed roughly ₹3.75-4 lakh for mid-to-high incomes, the old regime may win. Otherwise the new regime is usually cheaper. Use the calculator with your actual numbers.
How is surcharge applied?
Surcharge applies above ₹50 lakh income: 10% (₹50 lakh-₹1 crore), 15% (₹1-2 crore), 25% (above ₹2 crore). The new regime caps surcharge at 25%; the old regime has a 37% tier above ₹5 crore. Marginal relief applies at each threshold. Cess of 4% is added on tax plus surcharge.
Can salaried employees switch regimes every year?
Salaried individuals without business income can choose the regime each year while filing their return. Those with business income have limited switching options. Check the latest rules.
Are the figures final tax liability?
No. This is an estimate for planning. It does not cover capital gains, other special-rate income, TDS credits or advance tax. Always verify with official sources or a qualified professional.
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Results from FinanceChacha are estimates for planning and education, not financial, tax or legal advice.