Income Tax Calculator - New & Old Regime FY 2025-26

It depends on your deductions. If you claim large deductions under 80C, HRA, and home loan interest, the old regime may give you a lower tax liability. If your deductions are small or zero, the new regime is usually better. Use our calculator to compare both.

For FY 2025-26 the standard deduction is ₹75,000 under the new regime and ₹50,000 under the old regime. Budget 2024 raised the new-regime figure from ₹50,000 to ₹75,000 with effect from FY 2024-25. It is deducted from your gross salary before tax is computed and is available to salaried taxpayers and pensioners.

Under the new regime for FY 2025-26, if your net taxable income is up to ₹12,00,000 you get a full rebate under section 87A (up to ₹60,000) - your income tax is nil. Just above that limit, marginal relief applies: your tax cannot exceed the amount by which your income crosses ₹12,00,000. So at a taxable income of ₹12,10,000 the tax is ₹10,000, not the ₹61,500 the slabs alone would give. Marginal relief runs out at roughly ₹12,70,600, after which the normal slab tax applies.

Education cess is an additional levy of 4% charged on the total income tax (plus surcharge, if any). It is collected by the government to fund education and health schemes and is mandatory for all taxpayers.

A surcharge is an additional levy on the income tax itself, stepped by your total taxable income: 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore, and 37% above ₹5 crore. The new regime caps the top rate at 25%, so the 37% band applies only under the old regime. Marginal relief limits the jump at each threshold, and surcharge is added before the 4% health and education cess.

Common deductions under the old regime include 80C investments (max ₹1,50,000), 80D health insurance (max ₹25,000, rising to ₹50,000 for senior citizens), HRA exemption, home loan interest under section 24(b) (max ₹2,00,000), and the ₹50,000 standard deduction.

Monthly TDS is your estimated total annual tax liability divided by 12. Your employer deducts this amount from your monthly salary and deposits it with the government on your behalf.

Yes, under the old regime. Senior citizens (60-80 years) have a basic exemption of ₹3,00,000. Super senior citizens (above 80) have ₹5,00,000. Under the new regime, slabs are uniform for all age groups.