Income Tax Calculator FY 2025-26
Compare your income tax under old and new regime for FY 2025-26 (AY 2026-27). Free India income tax calculator with slabs, 87A rebate, surcharge and 4 percent cess.
Budget 2025 reshaped the new tax regime in a meaningful way. The standard deduction for salaried taxpayers stayed at 75,000 rupees, but the slab structure widened and the Section 87A rebate jumped to 60,000, making income up to 12 lakh effectively tax free for most salaried Indians. The income tax calculator on this page computes your tax under both the old regime and the new regime side by side for FY 2025-26 (AY 2026-27), with full handling of slabs, rebate, surcharge bands and 4 percent cess.
Income
Old-regime deductions
- Taxable income
- ₹14,25,000
- Tax on slabs
- ₹93,750
- 87A rebate
- −₹0
- Surcharge
- ₹0
- Cess (4%)
- ₹3,750
- Take-home
- ₹14.03L
- Taxable income
- ₹12,25,000
- Tax on slabs
- ₹1,80,000
- 87A rebate
- −₹0
- Surcharge
- ₹0
- Cess (4%)
- ₹7,200
- Take-home
- ₹13.13L
Why use the Income Tax Calculator FY 2025-26
After the FY 2025-26 changes, the new regime is now the default and is more attractive than ever for most salaried taxpayers. The old regime remains better only for those who claim large deductions like the full 1.5 lakh under 80C, plus 80D health insurance, plus 50,000 NPS, plus 2 lakh home loan interest, plus a meaningful HRA exemption. The calculator runs both regimes for your specific income and deductions, recommending the lower tax option and showing the exact rupee saving. No more guessing or relying on rules of thumb that get out of date when the budget moves the goalposts.
Benefits at a glance
FY 2025-26 slabs baked in
New regime: 0 percent up to 4 lakh, 5 percent from 4 to 8 lakh, 10 percent from 8 to 12 lakh, 15 percent from 12 to 16 lakh, 20 percent from 16 to 20 lakh, 25 percent from 20 to 24 lakh, 30 percent above 24 lakh. Old regime slabs unchanged from prior years. Both engines run automatically.
Section 87A rebate handled correctly
The new regime rebate of up to 60,000 makes income up to 12 lakh effectively tax free. The calculator applies marginal relief above 12 lakh so the tax on a small excess does not exceed the income above the threshold. Old regime rebate of up to 12,500 applies up to 5 lakh income.
Surcharge and cess included
Surcharge bands of 10 percent (50 lakh to 1 crore), 15 percent (1 to 2 crore) and 25 percent (above 2 crore in the new regime) apply automatically. The 4 percent Health and Education Cess sits on top of tax plus surcharge.
Recommendation with exact rupee savings
The calculator picks the lower tax regime for you and shows the saving compared to the alternative. Useful when filing your return and choosing the regime, or earlier when budgeting your annual tax bill.
How to use the Income Tax Calculator FY 2025-26
- 1
Enter your gross annual income
Use the total income before any deductions, including salary, bonuses, rental income, capital gains and any other taxable income. The calculator applies standard deduction automatically for salaried taxpayers.
- 2
Tick the salaried box if applicable
Salaried and pensioner taxpayers get a 75,000 standard deduction in the new regime and 50,000 in the old regime. The calculator applies the right amount based on your selection.
- 3
Enter old regime deductions
Section 80C contributions (PPF, ELSS, LIC, EPF up to 1.5 lakh), 80D health insurance, 80CCD(1B) NPS, home loan interest under Section 24B, HRA exemption (use the HRA calculator). These reduce taxable income only under the old regime.
- 4
Read the comparison and recommendation
The calculator shows tax under both regimes, the recommended regime and the rupee saving. The slab wise breakdown is below for verification.
Frequently asked questions
What are the new tax regime slabs for FY 2025-26?
The Budget 2025 slabs are: 0 percent up to 4 lakh, 5 percent from 4 to 8 lakh, 10 percent from 8 to 12 lakh, 15 percent from 12 to 16 lakh, 20 percent from 16 to 20 lakh, 25 percent from 20 to 24 lakh and 30 percent above 24 lakh. Salaried taxpayers also get a 75,000 standard deduction, taking the effective tax free income to 12.75 lakh after the 87A rebate.
How does Section 87A rebate work in the new regime?
Under the new regime for FY 2025-26, if your taxable income (after standard deduction) is at or below 12 lakh, you get a rebate of up to 60,000 under Section 87A. This effectively makes your tax zero. Above 12 lakh, marginal relief ensures that the additional tax does not exceed the income amount above the 12 lakh threshold, smoothing the cliff.
Which regime should I choose for FY 2025-26?
The new regime is now the default and is the better choice for most salaried taxpayers, especially after Budget 2025. The old regime is usually better only if your eligible deductions (1.5 lakh 80C plus 25,000 to 75,000 80D plus 50,000 NPS plus up to 2 lakh home loan interest plus HRA exemption) total above approximately 4.25 lakh combined. The calculator on this page does the comparison automatically for your exact numbers.
What deductions are still available under the new regime?
The standard deduction of 75,000 (for salaried), Section 80CCD(2) for employer NPS contribution up to 14 percent of salary for central government employees and 10 percent for others, transport allowance for specially abled, conveyance allowance, daily allowance for tour duty, and a few specific allowances. Most popular old regime deductions including 80C, 80D for self, HRA and home loan interest on self occupied property are not available.
How is surcharge calculated?
Surcharge is a percentage of tax (before cess) levied on high incomes. The bands for FY 2025-26 are: 10 percent if income exceeds 50 lakh up to 1 crore, 15 percent for 1 to 2 crore, and 25 percent above 2 crore in the new regime. The old regime has the same first three bands plus a 37 percent band above 5 crore. Marginal relief on surcharge applies at each band boundary.
What is the Health and Education Cess?
A 4 percent cess applies on the total of tax plus surcharge. It funds health and education initiatives. The cess applies under both old and new regimes. The calculator includes it automatically in the total tax liability.
When is the income tax return due for FY 2025-26?
For most individuals not requiring an audit, the deadline for FY 2025-26 (AY 2026-27) is 31 July 2026. Tax audit cases have an extended deadline of 31 October 2026. Late filing attracts a fee of up to 5,000 rupees and limits your ability to revise the return.
Can I switch between regimes each year?
Salaried taxpayers without business income can switch between old and new regimes every year while filing the return. Taxpayers with business income can switch only once and then must stick with the chosen regime for that business income. The new regime is the default; selecting the old regime requires explicitly opting in.
Final word
The income tax calculator removes the guesswork from a decision that affects your bank balance directly. Run it with your actual annual income and your real deductions before you file. If the recommendation is the new regime by a clear margin, switch and move on. If the old regime wins, make sure your investment proofs are organised and submitted to your employer in time so that TDS does not over deduct. Either way, the rupee comparison is what matters, not received wisdom about which regime is generally better.
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