Enter your income once and see your tax under both the new and old regimes — including the ₹12 lakh rebate, standard deduction, surcharge and cess — with a clear verdict on which regime wins for you.
New regime slabs — FY 2025-26
Standard deduction ₹75,000 (salaried/pensioners). Section 87A rebate wipes out tax when taxable income is up to ₹12,00,000, with marginal relief just above it. Surcharge applies from ₹50 lakh (capped at 25% in this regime), and 4% health & education cess applies on the total.
Old regime slabs — FY 2025-26
Standard deduction ₹50,000 (salaried), plus the full menu of deductions: 80C up to ₹1.5 lakh, 80D health insurance, HRA exemption, home-loan interest up to ₹2 lakh, 80CCD(1B) NPS ₹50,000 and others. Section 87A rebate (up to ₹12,500) makes tax zero when taxable income is within ₹5 lakh.
Worked example
Salaried, ₹15,00,000 gross, ₹2,00,000 of old-regime deductions. New regime: taxable ₹14.25 lakh → slab tax ₹93,750 + 4% cess = ₹97,500. Old regime: taxable ₹12.5 lakh → slab tax ₹1,87,500 + cess = ₹1,95,000. The new regime wins by ₹97,500 — and the old regime would need deductions of well over ₹4 lakh (besides standard deduction) to catch up at this income.
Assumptions and scope
- Applies FY 2025-26 (AY 2026-27) rules as enacted by the Finance Act 2025 — verify against the latest Finance Act if you are reading this in a later year.
- Income is treated as normal slab-rate income (salary, pension, interest, rent). Capital gains taxed at special rates are outside scope.
- The deductions field is applied in the old regime only, reflecting the common case; new-regime-eligible items like employer NPS (80CCD(2)) are not modelled separately.
- Surcharge (10% / 15% / 25% / 37%, capped at 25% in the new regime) and marginal relief at every threshold are applied automatically, followed by 4% cess.
Frequently asked questions
Is income up to ₹12 lakh really tax-free in the new regime?
Yes, for FY 2025-26 the Section 87A rebate makes tax zero when your taxable income (after the ₹75,000 standard deduction for salaried) is up to ₹12 lakh — so a salaried person earning up to ₹12.75 lakh pays no tax. Above that, marginal relief ensures a small overshoot doesn't create a tax cliff. The rebate does not apply to special-rate income like capital gains.
Which regime is better — new or old?
It depends entirely on your deductions. The new regime has lower rates but allows almost no deductions; the old regime has higher rates but permits 80C, 80D, HRA, home-loan interest and more. As a rough guide for FY 2025-26, the old regime only wins if your total deductions (beyond standard deduction) are very large — typically over ₹4–5 lakh for incomes above ₹15 lakh. This calculator does the exact comparison for your numbers.
What is the standard deduction for FY 2025-26?
₹75,000 in the new regime and ₹50,000 in the old regime, available to salaried employees and pensioners automatically — no bills or proofs needed. It does not apply to pure business or professional income.
Which deductions are allowed in the new regime?
Very few: the ₹75,000 standard deduction, employer's NPS contribution under 80CCD(2), and a handful of others like Agniveer corpus contributions. Popular deductions — 80C (PPF, ELSS, LIC), 80D health insurance, HRA, LTA and home-loan interest on self-occupied property — are only available in the old regime.
What is marginal relief?
A safeguard so that earning slightly more than a threshold never leaves you with less money after tax. It applies just above the ₹12 lakh rebate limit in the new regime, and at each surcharge threshold (₹50 lakh, ₹1 crore and up) in both regimes. This calculator applies both automatically.
Do I need to choose a regime every year?
The new regime is the default. Salaried taxpayers can switch between regimes every year while filing their return (tell your employer your choice for TDS too). Taxpayers with business income can switch to the old regime only once, so choose carefully.
Does this calculator cover capital gains or freelance income?
No — it computes tax on normal slab-rate income such as salary, pension, interest and rent. Capital gains on shares and mutual funds are taxed at special rates outside the slabs, and business income involves presumptive schemes and expenses beyond this tool's scope.