Income Tax Calculator
New Regime FY 2025-26 (AY 2026-27)
Calculate your income tax under the new tax regime with updated slabs. Includes ₹75,000 standard deduction and Section 87A rebate for income up to ₹12 lakh.
New Regime Tax Slabs FY 2025-26
| Income Slab | Tax Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 - ₹8,00,000 | 5% |
| ₹8,00,001 - ₹12,00,000 | 10% |
| ₹12,00,001 - ₹16,00,000 | 15% |
| ₹16,00,001 - ₹20,00,000 | 20% |
| ₹20,00,001 - ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Standard Deduction: ₹75,000 (deducted from gross income before slab calculation)
Section 87A Rebate: No tax if taxable income is ₹12,00,000 or less
Health & Education Cess: 4% on total tax
Key Changes in Budget 2025
- No tax on income up to ₹12 lakh (₹12.75 lakh for salaried with standard deduction)
- Standard deduction increased from ₹50,000 to ₹75,000
- New tax slabs restructured with wider brackets
- New regime is now the default — you must explicitly opt for old regime
Frequently Asked Questions
Should I choose new regime or old regime?
The new regime is better for most people who don't have significant deductions (HRA, 80C, 80D, home loan interest). If your total deductions under the old regime exceed ~₹3.75 lakh, the old regime may be more beneficial. For salaried individuals with income up to ₹12.75 lakh, the new regime results in zero tax.
Is salary up to ₹12 lakh really tax-free?
Yes, under the new regime. With the ₹75,000 standard deduction, taxable income for a ₹12.75 lakh salary becomes ₹12 lakh, which qualifies for the full Section 87A rebate. Effective tax is zero.
What about surcharge for high income?
Surcharge applies on income above ₹50 lakh: 10% for ₹50L-1Cr, 15% for ₹1Cr-2Cr, 25% for ₹2Cr-5Cr. This calculator shows basic tax + cess; add surcharge for very high incomes.