Income Tax Calculator
An easy-to-use tool that lets you compare and calculate your income tax under both the old and new tax regimes. Find out your tax liability instantly with this online calculator.
Frequently Asked Questions
What is the Income Tax Calculator?
Why have we come up with the Income Tax Calculator?
How the Income Tax Calculator can be used?
What are the salary slabs for old tax regime?
Here is a chart for the old tax regime in India.
| Salary slab | Age less than 60 | Age 60 - 80 | Age above 80 |
|---|---|---|---|
| 0 - 2.5 L | 0% | 0% | 0% |
| 2.5 - 3 L | 5% | 5% | 0% |
| 3 - 5.0 L | 5% | 5% | 0% |
| 5.0 - 10.0 L | 20% | 20% | 20% |
| 10.0 L and above | 30% | 30% | 30% |
Understanding what tax regime would be beneficial for you varies from person to person based on what their income composition is and what investments are done.
People with net taxable incomes of less than or equal to Rs. 5 lakhs qualify for a tax rebate under Section 87A, meaning they have no tax obligations under the old tax regime.
What are the income tax slabs for the new regime announced in the Union Budget 2025?
Here is a chart for the new tax regime for FY 2025-26 as per the recent Union Budget announcement:
| Salary slab | New tax regime |
|---|---|
| 0 - 4 L | 0% |
| 4 - 8 L | 5% |
| 8 - 12 L | 10% |
| 12 - 16 L | 15% |
| 16 - 20L | 20% |
| 20 - 24 L | 25% |
| Above 24L | 30% |
Understanding which tax regime is beneficial for you depends on your income composition and other financial factors.
People with net taxable incomes of less than or equal to Rs. 12 lakhs qualify for a tax rebate under Section 87A, meaning they have no tax obligations under the new tax regime.
What was the standard deduction specified in the Union Budget of 2025?
Old vs New Tax Regime: Which One Should You Choose in 2025?
The Indian government continues to provide flexibility in income tax planning by allowing taxpayers to choose between the old tax regime and the new tax regime as per the latest Union Budget 2025-26.
The old regime allows you to claim multiple exemptions and deductions such as HRA, LTA, 80C, 80D, and more. It is ideal for taxpayers who actively invest in tax-saving instruments and have home loans or other deductions.
On the other hand, the new regime offers lower tax rates with simplified compliance but removes most exemptions and deductions. It is suitable for salaried individuals with fewer investments or deductions.
For FY 2025-26, the standard deduction has been updated to ₹75,000 under the new regime and remains ₹50,000 in the old regime. Additionally, under Section 87A, both regimes offer tax rebates to individuals with net taxable incomes up to ₹5L (old) and ₹12L (new), resulting in zero tax liability.
Use our Income Tax Calculator to compare both regimes instantly and make an informed decision based on your income structure, exemptions, and financial goals.
Keywords: income tax calculator 2025, old vs new tax regime India, tax slab comparison 2025-26, tax saving, Union Budget 2025, income tax rebate section 87A
Old vs New Tax Regime in India (FY 2025-26): A Comprehensive Guide
📌 Introduction
Choosing between the Old and New Tax Regimes is crucial for optimizing your tax liability. This guide provides a detailed comparison to help you make an informed decision for the Financial Year 2025-26 (Assessment Year 2026-27).
📊 Tax Slabs Comparison
Old Tax Regime
- Up to ₹2.5 lakh: Nil
- ₹2.5 lakh – ₹5 lakh: 5%
- ₹5 lakh – ₹10 lakh: 20%
- Above ₹10 lakh: 30%
* Cess and surcharges apply
New Tax Regime
- Up to ₹4 lakh: Nil
- ₹4 lakh – ₹8 lakh: 5%
- ₹8 lakh – ₹12 lakh: 10%
- ₹12 lakh – ₹16 lakh: 15%
- ₹16 lakh – ₹20 lakh: 20%
- ₹20 lakh – ₹24 lakh: 25%
- Above ₹24 lakh: 30%
* Cess and surcharges apply
💰 Deductions and Exemptions
Old Tax Regime
- Standard Deduction: ₹50,000
- Section 80C: Up to ₹1.5 lakh (e.g., PPF, LIC, ELSS)
- Section 80D: Health insurance premiums
- HRA, LTA, and more exemptions
New Tax Regime
- Standard Deduction: ₹75,000
- No deductions under Section 80C, 80D, HRA, LTA
- Simple and streamlined filing
📈 Tax Liability Comparison
Assumption: Gross Annual Income = ₹15,00,000
Old Regime:
- Deductions: ₹50,000 (Std) + ₹1,50,000 (80C) + ₹25,000 (80D)
- Taxable Income: ₹12,75,000
- Tax: ₹1,95,000 + Cess ₹7,800 = ₹2,02,800
New Regime:
- Deductions: ₹75,000 (Standard Only)
- Taxable Income: ₹14,25,000
- Tax: ₹93,750 + Cess ₹3,750 = ₹97,500
✅ Tax Saved: ₹1,05,300 with New Regime
* Actual savings vary based on your deductions.
🧠 Choosing the Right Regime
- Old Regime: Best if you claim major deductions (e.g., investments, insurance, HRA)
- New Regime: Great for those with minimal deductions seeking simplicity
🧮 Tools to Help You Decide
📌 Conclusion
Evaluate your income, deductions, and future goals before choosing your tax regime. When in doubt, consult a financial advisor to tailor the best strategy for your tax planning.