Income Tax Calculator
FY 2025-26 (AY 2026-27) - Compare Old vs New Tax Regime
Supports FY 2025-26 and FY 2026-27 — select from the dropdown below
Understanding Income Tax for Salaried Employees in India
Every salaried individual in India must pay income tax based on their total income after deductions. For FY 2025-26 and FY 2026-27, you can choose between the old and new tax regimes. The tax slabs and deduction limits are identical for both years. Understanding the slabs, deductions, and exemptions is crucial to minimizing your tax liability legally.
New Regime Tax Slabs FY 2025-26 / 2026-27
| Income Slab | Tax Rate |
|---|---|
| Up to Rs 4,00,000 | Nil |
| Rs 4,00,001 - Rs 8,00,000 | 5% |
| Rs 8,00,001 - Rs 12,00,000 | 10% |
| Rs 12,00,001 - Rs 16,00,000 | 15% |
| Rs 16,00,001 - Rs 20,00,000 | 20% |
| Rs 20,00,001 - Rs 24,00,000 | 25% |
| Above Rs 24,00,000 | 30% |
Old Regime Tax Slabs FY 2025-26 / 2026-27
| Income Slab | Tax Rate |
|---|---|
| Up to Rs 2,50,000 | Nil |
| Rs 2,50,001 - Rs 5,00,000 | 5% |
| Rs 5,00,001 - Rs 10,00,000 | 20% |
| Above Rs 10,00,000 | 30% |
* Senior citizens (60-80): Nil up to Rs 3L. Super senior (80+): Nil up to Rs 5L.
Standard Deduction
A flat deduction available to all salaried employees without any proof of investment. Under the new regime, it is Rs 75,000, and under the old regime, it is Rs 50,000 for FY 2025-26. This reduces your taxable income directly from gross salary.
Section 80C Deductions
Claim up to Rs 1,50,000 in deductions under the old regime for investments in EPF, PPF, ELSS, life insurance, NSC, tax-saving FDs, home loan principal, tuition fees, and Sukanya Samriddhi Yojana. This is the most popular tax-saving section.
HRA Exemption
If you live in a rented house and receive HRA from your employer, you can claim HRA exemption under the old regime. The exemption is the minimum of: actual HRA received, rent paid minus 10% of basic salary, or 50% of basic (metro) / 40% of basic (non-metro).
Surcharge and Cess
A surcharge is levied on income tax for high earners: 10% (Rs 50L-1Cr), 15% (Rs 1Cr-2Cr), 25% (Rs 2Cr-5Cr), and 37%/25% (above Rs 5Cr for old/new regime). Health and Education Cess of 4% is added on tax plus surcharge for all taxpayers.
Frequently Asked Questions
Under the new tax regime for FY 2025-26: Up to Rs 4,00,000 - Nil; Rs 4,00,001 to Rs 8,00,000 - 5%; Rs 8,00,001 to Rs 12,00,000 - 10%; Rs 12,00,001 to Rs 16,00,000 - 15%; Rs 16,00,001 to Rs 20,00,000 - 20%; Rs 20,00,001 to Rs 24,00,000 - 25%; Above Rs 24,00,000 - 30%. A standard deduction of Rs 75,000 is available, and rebate under section 87A makes income up to Rs 12,00,000 effectively tax-free.
Under the old regime for individuals below 60: Up to Rs 2,50,000 - Nil; Rs 2,50,001 to Rs 5,00,000 - 5%; Rs 5,00,001 to Rs 10,00,000 - 20%; Above Rs 10,00,000 - 30%. Senior citizens (60-80) get exemption up to Rs 3,00,000 and super senior citizens (80+) up to Rs 5,00,000.
It depends on your deductions. If your total deductions (80C, 80D, HRA, home loan interest, etc.) exceed approximately Rs 3.75 lakhs, the old regime may save you more tax. For those with fewer deductions, the new regime with lower rates and Rs 75,000 standard deduction is usually better. Use our calculator above to compare both with your actual numbers.
The standard deduction is Rs 75,000 under the new tax regime and Rs 50,000 under the old tax regime for FY 2025-26. It is a flat deduction for all salaried employees and pensioners, requiring no proof of investment.
HRA exemption is the minimum of: (1) Actual HRA received, (2) Rent paid minus 10% of basic salary (annual), (3) 50% of basic salary for metro cities (Delhi, Mumbai, Chennai, Kolkata) or 40% for non-metro cities. This exemption is only available under the old tax regime.
Section 80C allows deductions up to Rs 1,50,000 for EPF, PPF, ELSS mutual funds, life insurance premiums, NSC, tax-saving FDs (5-year), home loan principal repayment, tuition fees for up to 2 children, Sukanya Samriddhi Yojana, and senior citizen savings scheme. Only available under the old regime.
Surcharge applies only if your total income exceeds Rs 50 lakhs. Rates: 10% (Rs 50L-1Cr), 15% (Rs 1Cr-2Cr), 25% (Rs 2Cr-5Cr), 37% old / 25% new regime (above Rs 5Cr). Marginal relief ensures surcharge does not exceed the additional income above the threshold.
Steps: (1) Start with gross salary. (2) Subtract standard deduction. (3) Under old regime, subtract HRA exemption, 80C, 80D, and other deductions. (4) Apply tax slab rates to taxable income. (5) Add surcharge if income exceeds Rs 50L. (6) Add 4% Health & Education Cess. The result is your total annual tax liability.
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