Which is better, the old or new tax regime?

It depends on your deductions. The new regime has lower slab rates and a bigger rebate (nil tax up to ₹12 lakh taxable) but allows almost no deductions. The old regime lets you claim 80C, HRA, home-loan interest and more, so it wins when your deductions are large. This calculator computes both and tells you which is lower.

What is the rebate under section 87A?

Under the new regime, a rebate makes tax nil up to ₹12 lakh of taxable income (₹12.75 lakh salary after standard deduction), with marginal relief just above that. Under the old regime, the rebate makes tax nil up to ₹5 lakh taxable income.

Are the tax slabs the same for FY 2025-26 and FY 2026-27?

Yes. The Budget 2026 kept the new-regime slabs and rebate unchanged, so the same structure applies to both financial years. A 4% health and education cess is added on top of the tax.

Income Tax Calculator (India) — Old vs New Regime FY 2025-26

How it's calculated

Under the new regime a ₹75,000 standard deduction is applied and the slab rates run from nil up to ₹4 lakh through to 30% above ₹24 lakh; a section 87A rebate makes the tax nil up to ₹12 lakh of taxable income, with marginal relief just above that. Under the old regime a ₹50,000 standard deduction plus your 80C, 80D, HRA, home-loan interest, NPS and other eligible deductions are subtracted first, then the older slabs apply with an age-based basic exemption; here the 87A rebate makes tax nil up to ₹5 lakh taxable. A 4% health and education cess is added to both, and the calculator shows which comes out lower.

FY 2025-26 slabs (also applying to FY 2026-27). Surcharge applies above ₹50 lakh; its marginal relief is approximate here. This is an indicative estimate for planning, not tax advice — confirm with a tax professional.

Frequently asked questions

Does the new regime allow any deductions?

Very few — mainly the ₹75,000 standard deduction and the employer's NPS contribution under 80CCD(2). Common deductions like 80C and HRA are not available, which is why the old regime can still win when your deductions are large.

Which regime is the default?

The new regime is the default. You can opt for the old regime, though salaried taxpayers can switch each year while those with business income face restrictions.

Is HRA exemption included automatically?

Enter your HRA exemption in the field — compute it first with the HRA calculator. It only reduces tax under the old regime.

Income Tax Calculator — Old vs New Regime

Your income

Deductions (old regime)

How it's calculated

Frequently asked questions