Income Tax Calculator FY 2025-26

What is the new tax regime for FY 2025-26?

The new tax regime (default from FY 2024-25) has lower slab rates: 0% up to ₹4L, 5% for ₹4–8L, 10% for ₹8–12L, 15% for ₹12–16L, 20% for ₹16–20L, 25% for ₹20–24L, and 30% above ₹24L. No deductions for 80C, 80D, HRA, or LTA are available. Rebate under 87A gives zero tax if income ≤ ₹12 lakh.

Which regime is better — old or new?

The new regime is generally better for those with few deductions (low 80C, 80D investments, no HRA). The old regime is better for those who maximise 80C (₹1.5L), claim HRA, 80D, and home loan interest (Sec 24b). Our calculator instantly shows which regime saves more tax for your specific income and deductions.

What is the 87A tax rebate?

Section 87A provides a tax rebate of up to ₹12,500 for taxpayers with taxable income up to ₹5 lakh under the old regime. Under the new regime, the rebate is higher — effectively making income up to ₹12 lakh tax-free (gross income, before standard deduction).

What is the standard deduction in 2025-26?

The standard deduction of ₹50,000 is available to salaried individuals under both old and new regimes. For pension income, a standard deduction of ₹15,000 or actual pension, whichever is lower, is applicable.

How is health and education cess calculated?

A 4% Health & Education Cess is levied on the total income tax payable (after rebate). For example, if your tax before cess is ₹50,000, cess = 4% of ₹50,000 = ₹2,000. Total tax payable = ₹52,000. Our calculator automatically includes cess in the final tax amount.