Income Tax Calculator FY 2025-26: New vs Old Regime Compared

Choosing the right tax regime can save you tens of thousands of rupees every year. Our income tax calculator FY 2025-26 compares the new regime slabs (0% to 4L, 5% for 4-8L, 10% for 8-12L, 15% for 12-16L, 20% for 16-20L, 25% for 20-24L, 30% above 24L) with the old regime slabs (0% to 2.5L, 5% to 5L, 20% to 10L, 30% above 10L), adds the 4% health and education cess, and applies the Section 87A rebate that makes taxable income up to Rs 12 lakh tax-free under the new regime.

How the comparison works

• New regime taxable income: gross salary minus Rs 75,000 standard deduction.
• Old regime taxable income: gross minus Rs 50,000 standard deduction minus 80C, 80D and other deductions you enter.
• Rebate logic: new regime tax is zero up to Rs 12 lakh taxable income; old regime tax is zero up to Rs 5 lakh.
• Cess: 4% is added on the slab tax in both regimes.

When the old regime still wins

If you claim large deductions for EPF, ELSS, PPF, home loan interest, HRA and medical insurance, the old regime can beat the new regime even at Rs 12-18 lakh salaries. Enter your total deductions honestly, compare the effective tax rate on both sides, and pick the regime with the lower final liability. You can switch regimes each year as a salaried individual.

Quick example

A Rs 12 lakh salary gives roughly zero tax in the new regime after standard deduction and rebate, while the old regime without deductions charges over Rs 1.7 lakh including cess. Add Rs 4 lakh of deductions and the old regime becomes competitive again. That is exactly what this tool quantifies for you in milliseconds, fully in the browser.