India Income Tax Calculator FY 2025-26: New Regime vs Old Regime
By the Global Income Tax Calculator editorial team · How we source and check these figures
India's two-regime income tax system asks every salaried taxpayer to make a decision each year, and the wrong choice can cost tens of thousands of rupees. The new regime offers wider slabs and a larger standard deduction; the old regime offers narrower slabs but keeps the deductions many households already rely on.
New regime slabs for FY 2025-26
Under the new regime the first ₹4 lakh is taxed at nil, then 5% to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh, 20% to ₹20 lakh, 25% to ₹24 lakh and 30% above that. Salaried taxpayers also receive a ₹75,000 standard deduction.
The Section 87A rebate then removes tax entirely for taxable income up to ₹12 lakh. Combined with the standard deduction, that means a salaried individual earning up to roughly ₹12.75 lakh pays no income tax at all.
- ₹0 – ₹4,00,000: nil
- ₹4,00,001 – ₹8,00,000: 5%
- ₹8,00,001 – ₹12,00,000: 10%
- ₹12,00,001 – ₹16,00,000: 15%
- ₹16,00,001 – ₹20,00,000: 20%
- ₹20,00,001 – ₹24,00,000: 25%
- Above ₹24,00,000: 30%
What the old regime still offers
The old regime uses four slabs — nil to ₹2.5 lakh, 5% to ₹5 lakh, 20% to ₹10 lakh and 30% above — with a ₹50,000 standard deduction. Its advantage is deductions: Section 80C up to ₹1.5 lakh, Section 80D for health insurance, House Rent Allowance exemption, Section 24(b) home loan interest up to ₹2 lakh, and the additional NPS deduction under 80CCD(1B).
Stack those fully and a taxpayer can shelter well over ₹4 lakh of income, which is where the old regime starts to beat the new one.
Where the break-even sits
As a broad rule, the old regime only wins when total deductions exceed roughly ₹3.75–₹4.25 lakh, and the threshold rises with income. A taxpayer with a large home loan, substantial HRA in a metro city and a maxed-out 80C is a strong candidate. Someone renting modestly with only EPF counting toward 80C almost certainly does better under the new regime.
The reliable method is to calculate both. Toggle the regime switch in the calculator, enter your gross salary for the new regime, and your gross salary minus total deductions for the old regime, then compare net pay.
The 4% cess and surcharge
A health and education cess of 4% applies to the tax payable under both regimes. Above ₹50 lakh of income, a surcharge also applies on a sliding scale — 10%, 15%, 25% — with the new regime capping the highest surcharge rate at 25% rather than 37%, which is a meaningful advantage for very high earners.
Can you switch regimes each year?
Salaried individuals without business income can choose their regime each year at filing, even if their employer applied a different one for TDS purposes. Taxpayers with business or professional income face restrictions on moving back and forth, so the decision carries more weight.