Income Tax Calculator FY 2025-26: Old vs New Regime Compared

The FY 2025-26 income tax framework is the post-Budget-2024 regime. Standard deduction in the new regime is now ₹75,000 (up from ₹50,000), the §87A rebate covers taxable income up to ₹7 lakh, and the surcharge is capped at 25% under the new regime. Here is the full picture for salaried Indians. New Regime Slabs (Default for FY 2025-26) - Up to ₹3 lakh: 0% - ₹3 lakh to ₹7 lakh: 5% - ₹7 lakh to ₹10 lakh: 10% - ₹10 lakh to ₹12 lakh: 15% - ₹12 lakh to ₹15 lakh: 20% - Above ₹15 lakh: 30% Plus 4% Health and Education Cess on tax, and surcharge above ₹50 lakh income (capped at 25% in new regime). §87A Rebate: For taxable income up to ₹7 lakh, the entire tax liability is rebated to zero. Marginal relief applies for incomes just over ₹7 lakh — the tax cannot exceed the income amount above ₹7 lakh. Old Regime Slabs (FY 2025-26) - Up to ₹2.5 lakh: 0% - ₹2.5 lakh to ₹5 lakh: 5% - ₹5 lakh to ₹10 lakh: 20% - Above ₹10 lakh: 30% §87A rebate up to ₹12,500 if taxable income is below ₹5 lakh. Standard deduction is ₹50,000 in the old regime (vs ₹75,000 in new). Which Regime Wins At Your Salary? At ₹7 lakh annual income (gross): both regimes give zero tax (new via 87A; old via deductions if claimed). At ₹10 lakh: new regime tax is approximately ₹54,600. Old regime tax with full 80C (₹1.5L) + 80D (₹25K) + ₹50K std deduction is approximately ₹52,000. Old regime wins by ₹2,600 if you can fully claim deductions. At ₹15 lakh: new regime tax is approximately ₹1,40,400. Old regime tax with ₹2L home loan interest + ₹1.5L 80C + ₹50K std deduction + ₹25K 80D is approximately ₹1,17,000. Old regime wins by ₹23,400. At ₹20 lakh: with full deductions (80C + 80D + 24B + HRA) the old regime saves roughly ₹35,000-50,000 over new regime. At ₹50 lakh+: old regime continues to win if deductions are fully utilised, savings can be ₹50,000-1,00,000+. The 87A Marginal Relief Trap If your taxable income is ₹7,05,000 in the new regime, your tax before relief is ₹20,500. Marginal relief caps your tax at the amount you exceed ₹7 lakh — so your tax is capped at ₹5,000, not ₹20,500. This is why earning between ₹7L and ₹7.27L doesn't punish you. What Counts As Deductions In Each Regime? New regime allows ONLY: - Standard deduction ₹75,000 - Employer NPS contribution under 80CCD(2) (up to 14% of basic for govt, 10% for private) - HRA cannot be claimed in new regime Old regime allows everything: - §80C (₹1.5L): EPF, PPF, ELSS, LIC, NSC, tuition fees, principal repayment of home loan - §80D (₹25K-1L): health insurance for self, family, senior parents - §80E: full interest on education loan - §80EEA: ₹1.5L home loan interest for first-time buyers - §80CCD(1B): ₹50K extra NPS contribution - §24(b): up to ₹2L home loan interest (self-occupied) - HRA exemption: lowest of (actual HRA, 50%/40% of basic, rent − 10% of basic) Standard deduction ₹50,000. How To Decide Run your exact numbers in our Income Tax Calculator. The rule of thumb: if you can claim deductions worth at least ₹2,00,000 (excluding the standard deduction), old regime is likely better. If your only realistic deductions are 80C and 80D (₹1.75L total), new regime usually wins. Surcharge Tiers Both regimes: - Income ₹50L-1Cr: 10% surcharge on tax - ₹1Cr-2Cr: 15% - ₹2Cr-5Cr: 25% - Above ₹5Cr (old regime): 37% - Above ₹5Cr (new regime): 25% (capped) The new regime's 25% cap above ₹5 crore is a significant advantage for very high earners. Calculate your exact liability using the Income Tax Calculator (old vs new comparison) and the Take-Home Salary Calculator on this site.