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Updated for Budget 2025

Income Tax Calculator FY 2025-26

Calculate your income tax accurately using official Budget 2025 tax slabs and rates. Compare New Regime (₹12L tax-free) vs Old Regime (multiple deductions) to maximize your savings.

Income Details

Enter your total annual salary (CTC minus employer contributions)

Age affects Old Regime tax slabs

Deductions (Old Regime Only)

PPF, EPF, Life Insurance, ELSS, Home Loan Principal, etc.

₹25k (self) + ₹25k (parents) = ₹50k max

Interest paid on home loan (not principal)

Additional NPS contribution beyond 80C

Best Choice for You

New Tax Regime

Simplified taxation with higher standard deduction

You Save

₹0

vs. other regime

New Regime

₹0

Effective Rate: 0.00%

Gross Income₹0
Standard Deduction-₹75,000
Taxable Income₹0
Income Tax₹0
Health & Edu Cess (4%)₹0

87A Rebate Applied - Tax is NIL

Old Regime

₹0

Effective Rate: 0.00%

Gross Income₹0
Total Deductions-₹50,000
Taxable Income₹0
Income Tax₹0
Health & Edu Cess (4%)₹0

87A Rebate Applied - Tax is NIL

Detailed Tax Comparison

ComponentNew RegimeOld Regime
Gross Annual Income₹0₹0
Standard Deduction-₹75,000-₹50,000
80C Deductions₹0₹0
Other Deductions (80D, NPS, Home Loan)₹0₹0
Net Taxable Income₹0₹0
Tax Before Rebate₹0₹0
Health & Education Cess (4%)₹0₹0
Total Tax Payable₹0₹0

New Tax Regime (FY 2025-26)

Income up to ₹12 Lakh is tax-free due to Section 87A rebate of ₹60,000. For salaried employees with ₹75,000 standard deduction, the effective tax-free limit is ₹12.75 Lakh. The 30% tax bracket now starts at ₹24 Lakh (earlier ₹15 Lakh).

Old Tax Regime

Best suited for individuals with significant investments in 80C (₹1.5L), home loans, NPS, health insurance, etc. Standard deduction is ₹50,000. Section 87A rebate available up to ₹5 Lakh taxable income.

Important

This calculator assumes you are a resident individual. Surcharge and additional taxes may apply for income above ₹50 Lakh. Consult a tax professional for personalized advice. TDS may be deducted by your employer throughout the year.

Government Employee? Check This Out

Are you a central government employee? Calculate your expected salary hike under the 8th Pay Commission.

8th Pay Commission Calculator

→ Estimate your revised basic pay, HRA, and total salary with projected fitment factors (1.83x - 2.86x)

Budget 2025: Major Tax Changes

₹12 Lakh Tax-Free (New Regime)

Section 87A rebate increased to ₹60,000 (from ₹25,000), making income up to ₹12 Lakh completely tax-free. For salaried employees, the effective limit is ₹12.75 Lakh after ₹75,000 standard deduction.

30% Tax Bracket Shifted

The highest 30% tax rate now applies only to income above ₹24 Lakh (earlier ₹15 Lakh). A new 25% bracket added for ₹20-24L income, significantly reducing tax burden for high earners.

₹75,000 Standard Deduction

Salaried employees in the New Regime get ₹75,000 standard deduction (up from ₹50,000). Old Regime continues with ₹50,000. Family pensioners get ₹25,000.

Simplified Tax Slabs

New Regime now has 7 clear tax brackets (0%, 5%, 10%, 15%, 20%, 25%, 30%) making calculations simpler. Each bracket covers ₹4 Lakh income range.

Complete Tax Slab Comparison (FY 2025-26)

New Tax Regime
Default regime from FY 2023-24 onwards
Income RangeTax RateTax on Slab
₹0 - ₹4,00,000NIL (0%)₹0
₹4,00,001 - ₹8,00,0005%₹20,000
₹8,00,001 - ₹12,00,00010%₹40,000
₹12,00,001 - ₹16,00,00015%₹60,000
₹16,00,001 - ₹20,00,00020%₹80,000
₹20,00,001 - ₹24,00,00025%₹1,00,000
Above ₹24,00,00030%On excess
Key Benefits: ₹75,000 standard deduction + ₹60,000 rebate (u/s 87A) = Effective tax-free income of ₹12.75L for salaried individuals.
Old Tax Regime
Opt-in regime with deductions
Income RangeBelow 60 Years60-80 YearsAbove 80 Years
₹0 - ₹2,50,000NILNILNIL
₹2,50,001 - ₹3,00,0005%NILNIL
₹3,00,001 - ₹5,00,0005%5%NIL
₹5,00,001 - ₹10,00,00020%20%20%
Above ₹10,00,00030%30%30%
Available Deductions: ₹50k standard + ₹1.5L (80C) + ₹25-50k (80D) + ₹2L home loan interest + ₹50k NPS (80CCD1B) + HRA/LTA

Real-World Tax Scenarios (FY 2025-26)

1

Young Professional

Salary: ₹10 Lakh | No investments

New Regime:₹0 tax
Old Regime:₹75,400

✓ Savings: ₹75,400 with New Regime (completely tax-free due to ₹12.75L limit)

2

Middle-Income Saver

Salary: ₹15 Lakh | ₹1.5L in 80C + ₹25k in 80D

New Regime:₹62,400
Old Regime:₹57,200

✓ Savings: ₹5,200 with Old Regime (deductions make the difference)

3

High Earner with Home Loan

Salary: ₹25 Lakh | Full 80C + ₹2L home loan interest

New Regime:₹2,70,400
Old Regime:₹1,87,200

✓ Savings: ₹83,200 with Old Regime (home loan interest saves significantly)

4

Very High Earner

Salary: ₹50 Lakh | Minimal deductions

New Regime:₹10,52,000
Old Regime:₹12,45,000

✓ Savings: ₹1,93,000 with New Regime (lower rates + 25% bracket benefit)

Note: Calculations include 4% cess. Surcharge may apply above ₹50L income. Actual tax may vary based on specific deductions claimed.

Complete Deduction Guide (Old Regime)

Section 80C - Maximum ₹1.5 Lakh

  • •Employee Provident Fund (EPF)
  • •Public Provident Fund (PPF)
  • •Equity Linked Savings Scheme (ELSS)
  • •Life Insurance Premium (LIC)
  • •National Savings Certificate (NSC)
  • •Home Loan Principal Repayment
  • •Sukanya Samriddhi Yojana
  • •Tuition Fees (max 2 children)

Combined limit of ₹1.5 Lakh across all 80C investments

Section 80D - Health Insurance

Below 60 Years

  • Self, Spouse, Children:₹25,000
  • Parents (any age):₹25,000
  • Maximum Total:₹50,000

Senior Citizen (60+ years)

  • Self, Spouse, Children:₹50,000
  • Parents (senior):₹50,000
  • Maximum Total:₹1,00,000

Covers health insurance premiums and preventive health checkups (₹5k within limit)

Section 80CCD(1B) - NPS

Additional deduction for National Pension System contribution

₹50,000

Over and above ₹1.5L under 80C

Section 24(b) - Home Loan Interest

Interest paid on home loan for self-occupied property

₹2,00,000

Separate from 80C (which covers principal)

Frequently Asked Questions

What is the tax-free limit for FY 2025-26 under the New Tax Regime?
Under the New Tax Regime for FY 2025-26, income up to ₹12 Lakh is effectively tax-free due to the enhanced Section 87A rebate of ₹60,000. For salaried employees claiming the ₹75,000 standard deduction, the effective tax-free limit becomes ₹12.75 Lakh.
What is the standard deduction for FY 2025-26?
The standard deduction for salaried individuals in FY 2025-26 is ₹75,000 under the New Tax Regime and ₹50,000 under the Old Tax Regime. This is a flat deduction available to all salaried employees without any proof of expenses. For family pensioners, the standard deduction is ₹25,000.
Which tax regime should I choose - New or Old?
Choose the New Tax Regime if you have minimal deductions and want simplicity. It offers lower tax rates and a higher tax-free limit (₹12.75L for salaried). Choose the Old Regime if you have significant investments in 80C (₹1.5L), home loans (₹2L interest), NPS (₹50k additional), health insurance (up to ₹1L), etc. Use our calculator to compare both regimes based on your actual income and deductions.
What are the new income tax slabs for FY 2025-26?
New Regime slabs: ₹0-4L (Nil), ₹4-8L (5%), ₹8-12L (10%), ₹12-16L (15%), ₹16-20L (20%), ₹20-24L (25%), Above ₹24L (30%). Old Regime slabs (below 60 years): ₹0-2.5L (Nil), ₹2.5-5L (5%), ₹5-10L (20%), Above ₹10L (30%).
What is Section 87A rebate and how does it work?
Section 87A provides a tax rebate to reduce your final tax liability to zero if your taxable income is below a threshold. For FY 2025-26, the New Regime offers a rebate up to ₹60,000 for income up to ₹12 Lakh, while the Old Regime offers ₹12,500 rebate for income up to ₹5 Lakh. If your calculated tax is less than or equal to the rebate amount, your final tax becomes zero.
Can I claim 80C deductions in the New Tax Regime?
No, the New Tax Regime does not allow deductions under Section 80C (PPF, LIC, ELSS, etc.), 80D (health insurance), or home loan interest. However, you can still claim the standard deduction of ₹75,000 and employer's NPS contribution under 80CCD(2). The New Regime compensates with lower tax rates and higher rebate limits.
What deductions are available in the Old Tax Regime?
Old Regime allows: Section 80C (₹1.5L) for PPF, EPF, LIC, ELSS, tuition fees, home loan principal; Section 80D (₹25k-1L) for health insurance; Section 80CCD(1B) (₹50k) for additional NPS; Home loan interest (₹2L) under Section 24(b); HRA exemption; LTA; and standard deduction of ₹50,000.
How is Health and Education Cess calculated?
Health and Education Cess is calculated at 4% of the total income tax (before cess). For example, if your income tax is ₹50,000, the cess will be ₹2,000 (4% of ₹50,000), making your total tax liability ₹52,000. This cess is applicable to both New and Old Tax Regimes.
How will the 8th Pay Commission affect my tax liability?
The 8th Pay Commission will increase your basic pay through fitment factors (projected 1.83x to 2.86x). While your gross salary will increase, the New Tax Regime's ₹12.75L tax-free limit means many government employees earning up to this amount will pay zero tax. Higher earners will see increased tax, but can optimize by choosing between New and Old Regime based on their deductions. Use our 8th Pay Commission Calculator to estimate your revised salary first.

Important Disclaimer

This calculator provides estimated tax calculations based on official Budget 2025 announcements and Income Tax Act provisions. Actual tax liability may vary based on TDS deductions, advance tax payments, and specific exemptions applicable to your case. For complex situations involving capital gains, business income, or international taxation, please consult a qualified Chartered Accountant.

Data Sources & Accuracy

All tax slabs, rates, and deduction limits are sourced from official government notifications and reputable financial institutions. Calculator updated as of February 2026 for FY 2025-26 (Assessment Year 2026-27).