Enter your salary once and see both regimes side by side — Budget 2025 slabs, the ₹12 lakh rebate, standard deduction and cess — with a clear recommendation.
What changed in Budget 2025 (for FY 2025-26 / AY 2026-27)
Budget 2025 reshaped the new regime substantially. The headline changes, all reflected in this calculator:
- Zero tax up to ₹12 lakh taxable income — the §87A rebate now wipes out tax up to ₹60,000 for taxable income of ₹12,00,000 or less.
- Standard deduction of ₹75,000 for salaried taxpayers in the new regime — so a salary of up to ₹12,75,000 can pay zero tax.
- Wider slabs — the 30% rate now starts only above ₹24 lakh (see the table below).
- The old regime is unchanged, and remains opt-in.
New regime slabs — FY 2025-26 (AY 2026-27)
| Taxable income | Rate |
|---|
| Up to ₹4,00,000 | 0% |
| ₹4,00,000 – ₹8,00,000 | 5% |
| ₹8,00,000 – ₹12,00,000 | 10% |
| ₹12,00,000 – ₹16,00,000 | 15% |
| ₹16,00,000 – ₹20,00,000 | 20% |
| ₹20,00,000 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Plus 4% health & education cess on the tax. §87A rebate up to ₹60,000 for taxable income up to ₹12,00,000; standard deduction ₹75,000.
Old regime slabs (unchanged)
| Taxable income | Rate |
|---|
| Up to ₹2,50,000 | 0% |
| ₹2,50,000 – ₹5,00,000 | 5% |
| ₹5,00,000 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Plus 4% cess. §87A rebate up to ₹12,500 for taxable income up to ₹5,00,000; standard deduction ₹50,000. All the classic deductions — 80C, 80D, HRA, home-loan interest — live here.
Who should still pick the old regime?
Only taxpayers with genuinely large deductions. A worked example at a ₹16,00,000 salary: the new regime owes ₹1,13,100. The old regime with ₹3,00,000 of combined deductions owes ₹1,95,000 — the new regime still saves ₹81,900. Push old-regime deductions to ₹6,00,000 (heavy HRA plus 80C plus home-loan interest) and the old regime owes ₹1,06,600, finally winning by ₹6,500. The crossover needs serious deductions — which is why the live table above computes both regimes on every keystroke instead of making you guess.
One honesty note: for taxable income marginally above ₹12 lakh, the law provides marginal relief that this standard slab computation does not model — actual tax just past the line will be a little lower than shown.
Frequently Asked Questions
Is this calculator for AY 2026-27 or FY 2025-26?
Both — they are the same period. FY 2025-26 is the year you earn the income (April 2025 to March 2026); AY 2026-27 is the year you file the return for it. This calculator uses the Budget 2025 slabs that apply to that period.
How is income up to ₹12 lakh tax-free in the new regime?
Through the Section 87A rebate: if your taxable income is ₹12,00,000 or less, the rebate (up to ₹60,000) wipes out the entire slab tax. Salaried taxpayers also get the ₹75,000 standard deduction first, so a salary up to ₹12,75,000 can pay zero tax. Note the rebate does not cover special-rate income such as capital gains.
What is the standard deduction for FY 2025-26?
₹75,000 in the new regime and ₹50,000 in the old regime, applied automatically to salary income before the slabs. This calculator already includes it — enter your gross salary, not salary minus the deduction.
Can I switch between the new and old regime every year?
Salaried taxpayers: yes — you can pick either regime each year while filing (and tell your employer your choice for TDS). If you have business or professional income, the rules are stricter: opting out of the new regime and switching back is essentially a once-in-a-lifetime move (Form 10-IEA).
Is the new regime the default?
Yes — since FY 2023-24 the new regime is the default. If you want the old regime's deductions (80C, 80D, HRA, home-loan interest), you must actively opt for it while filing or in your employer's tax declaration.
What about income just above ₹12 lakh — is there marginal relief?
Yes. For taxable income marginally above ₹12,00,000, marginal relief caps the tax at the amount by which income exceeds ₹12 lakh, so crossing the line does not suddenly cost ₹60,000+. This calculator shows the standard slab computation, so for incomes just past ₹12 lakh your actual tax may be slightly lower than shown.
Which deductions still work in the new regime?
Very few: the ₹75,000 standard deduction, employer NPS contributions under 80CCD(2) (up to 14% of basic + DA), and a handful of others like 80CCH. The big ones — 80C, 80D, HRA exemption, home-loan interest on self-occupied property — are old-regime only, which is exactly what the comparison table above weighs for you.
Estimates are for information and education only — not financial, tax or investment advice. Verify current rates and rules with official sources.