⚠️ Disclaimer: Based on Budget 2025 tax slabs for FY 2025-26 (AY 2026-27). Consult a tax professional for your specific situation.
Budget 2025 revised the New Regime slabs for FY 2025-26 (AY 2026-27): 0% up to ₹4 lakh, 5% from ₹4-8 lakh, 10% from ₹8-12 lakh, 15% from ₹12-16 lakh, 20% from ₹16-20 lakh, 25% from ₹20-24 lakh, and 30% above ₹24 lakh. A ₹75,000 standard deduction applies, and the Section 87A rebate now zeroes out tax for taxable income up to ₹12 lakh — which is why a salaried person can effectively earn up to roughly ₹12.75 lakh gross with zero tax under the New Regime.
The Old Regime is unchanged: standard slabs of 0% up to ₹2.5 lakh, 5% up to ₹5 lakh, 20% up to ₹10 lakh and 30% above, but it allows deductions — 80C investments (up to ₹1.5 lakh), 80D health insurance premiums, HRA exemption and a ₹50,000 standard deduction — that can significantly lower your taxable income if you claim them.
This calculator computes tax payable under both regimes for your income and Old Regime deductions, then tells you which one results in lower tax so you can decide which to opt for when filing.
Not always — it depends on how much you can claim in Old Regime deductions. With the ₹12 lakh rebate ceiling, most salaried taxpayers earning up to that level pay zero tax under the New Regime regardless of deductions, but higher earners with large 80C, 80D and HRA claims may still find the Old Regime cheaper. Compare both using your real numbers, as this calculator does.
The ₹75,000 standard deduction brings taxable income down first, and the Section 87A rebate then fully cancels tax as long as taxable income doesn't exceed ₹12 lakh — so ₹12,00,000 + ₹75,000 = ₹12,75,000 gross salary results in zero tax under the New Regime for FY 2025-26.
No — this shows the straightforward slab calculation without modeling marginal relief provisions for income just above the ₹12 lakh rebate threshold. If your taxable income is very close to ₹12 lakh, check with a tax professional, as marginal relief may reduce your actual tax slightly.
The FY 2024-25 tool uses the previous year's New Regime slabs and rebate ceiling (₹7 lakh). This tool uses the Budget 2025 slabs and rebate ceiling (₹12 lakh) that apply for FY 2025-26 (AY 2026-27) returns.