Calculate your income tax under both Old and New regime for FY 2025-26. Enter your salary, deductions, and HRA — get the exact tax difference in seconds and know which regime saves you more.
Type your total salary or income before any deductions — this is your CTC minus variable pay, or total annual receipts if self-employed.
Age determines which tax slabs apply under the old regime. Senior citizens (60–79) and super senior citizens (80+) get higher basic exemption limits.
Enter HRA details, 80C investments (PPF, ELSS, LIC), health insurance premium, NPS contributions, home loan interest, and any other eligible deductions. Leave blank if not applicable — the calculator treats empty fields as zero.
Instantly see your tax liability under both regimes side by side. The winner is highlighted in green. You can see the exact savings amount and choose the regime for your ITR or TDS declaration.
India has two parallel tax regimes — old and new. Each has different slab rates and a different set of deductions you can claim. Here are the official slabs for FY 2025-26:
| Income Slab | Tax Rate | Tax on Slab (Example ₹15L income) |
|---|---|---|
| Up to ₹4,00,000 | Nil | ₹0 |
| ₹4,00,001 – ₹8,00,000 | 5% | ₹20,000 |
| ₹8,00,001 – ₹12,00,000 | 10% | ₹40,000 |
| ₹12,00,001 – ₹16,00,000 | 15% | ₹45,000 |
| ₹16,00,001 – ₹20,00,000 | 20% | — |
| ₹20,00,001 – ₹24,00,000 | 25% | — |
| Above ₹24,00,000 | 30% | — |
Plus 4% health and education cess on total tax. Individuals with taxable income up to ₹12 lakh get a full 87A rebate — net tax payable is zero.
| Income Slab | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Senior citizens (60–79 years) get basic exemption up to ₹3,00,000. Super senior citizens (80+) get exemption up to ₹5,00,000. The 87A rebate under old regime applies if taxable income is up to ₹5,00,000 — resulting in zero net tax.
Two of the most impactful tax benefits apply automatically — no paperwork needed — and together they can reduce your tax bill by tens of thousands of rupees.
The standard deduction was increased from ₹50,000 to ₹75,000 in Budget 2024, effective from FY 2024-25. It applies under both the old and new regime for salaried employees and pensioners. You don't claim it separately — your employer deducts it from your gross salary before computing TDS. If you're calculating manually, subtract ₹75,000 from gross salary before applying slabs.
Under the new regime, if your taxable income (after standard deduction) is ₹12 lakh or below, the Section 87A rebate wipes out your entire tax liability — net tax payable becomes zero. This means a salaried person earning up to ₹12.75 lakh gross (₹12 lakh after ₹75,000 standard deduction) pays zero income tax under the new regime in FY 2025-26.
Under the old regime, the 87A rebate applies if taxable income is ₹5 lakh or below — making effective tax zero for anyone with post-deduction income under ₹5 lakh.
| Benefit | Old Regime | New Regime |
|---|---|---|
| Standard Deduction | ₹75,000 | ₹75,000 |
| 87A Rebate Threshold | ₹5,00,000 (taxable income) | ₹12,00,000 (taxable income) |
| Net Tax at Threshold | Zero | Zero |
| Gross Income for Zero Tax (Salaried) | ~₹5,75,000 | ~₹12,75,000 |
House Rent Allowance (HRA) is one of the largest tax-saving opportunities for salaried employees who live in rented accommodation. It is only available under the old regime. The exemption is the minimum of three amounts:
| Component | Formula |
|---|---|
| A — Actual HRA received | HRA component in salary slip (annual) |
| B — 50%/40% of Basic Salary | 50% of annual basic if metro city; 40% if non-metro |
| C — Rent paid minus 10% of Basic | Annual rent paid − (10% × annual basic salary) |
HRA exempt = min(A, B, C). This amount is deducted from your gross income before applying tax slabs under the old regime.
This is the most critical table when choosing between old and new regime. The new regime has lower base rates but eliminates most deductions. The old regime has higher rates but allows you to bring down your taxable income significantly through deductions.
| Deduction / Exemption | Old Regime | New Regime | Max Limit |
|---|---|---|---|
| Standard Deduction (salaried) | ✓ Allowed | ✓ Allowed | ₹75,000 |
| Section 80C (PPF, ELSS, LIC, NSC, etc.) | ✓ Allowed | ✗ Not allowed | ₹1,50,000 |
| Section 80D (Medical Insurance) | ✓ Allowed | ✗ Not allowed | ₹25,000–₹1,00,000 |
| HRA Exemption | ✓ Allowed | ✗ Not allowed | Calculated formula |
| LTA (Leave Travel Allowance) | ✓ Allowed | ✗ Not allowed | Actual travel cost |
| Home Loan Interest — Section 24(b) | ✓ Allowed | ✗ Not allowed | ₹2,00,000 |
| NPS Self — 80CCD(1B) | ✓ Allowed | ✗ Not allowed | ₹50,000 |
| Employer NPS — 80CCD(2) | ✓ Allowed | ✓ Allowed | 14%/10% of basic |
| Section 80TTA (savings interest) | ✓ Allowed | ✗ Not allowed | ₹10,000 |
| Section 80G (donations) | ✓ Allowed | ✗ Not allowed | 50% or 100% of donation |
| Professional Tax | ✓ Allowed | ✗ Not allowed | Actual (max ₹2,500) |
| Family Pension Deduction | ✓ Allowed | ✓ Allowed | ₹15,000 or 1/3 of pension |
The answer depends almost entirely on how much you can claim in deductions. Here is a practical decision guide:
Earn up to ₹12.75 lakh gross (zero tax via 87A rebate) · Have no significant HRA (own a house or live rent-free) · Don't invest heavily in 80C instruments · Are self-employed with few structured deductions · Prefer simplicity over tax planning.
Pay high rent in a metro city with a large HRA component · Maximise 80C (₹1.5L in PPF, ELSS, or LIC) · Pay home loan interest on a self-occupied property · Have a parent's medical insurance (80D up to ₹50,000 for senior citizens) · Contribute to NPS under 80CCD(1B) · Claim all of the above together — total deductions can reach ₹4–5 lakh easily.
| Annual Income | Few Deductions | Heavy Deductions (₹3L+) |
|---|---|---|
| Up to ₹12.75 lakh | New regime — Zero tax | Compare both — old may match |
| ₹15 lakh | New regime usually wins | Old regime likely better |
| ₹20 lakh | New regime likely better | Old regime often better |
| ₹30 lakh+ | Depends on deductions | Old regime usually better |
Many salaried employees don't realise that ₹75,000 is automatically deducted from gross salary before tax is computed. Always verify your Form 16 shows this deduction, and include it when doing your own calculation. Ignoring it makes your calculated tax ₹15,000–₹22,500 higher than it actually is (at 20–30% slab).
Your CTC includes employer PF contribution, gratuity, and other components that are not part of your taxable income. Use your net taxable salary — from your payslip or Form 16 Part B — not your CTC figure from your offer letter. CTC and taxable income can differ by ₹50,000–₹1.5 lakh.
Most employers ask employees to declare their regime at the start of the financial year. Many people pick the new regime by default because it's simpler — but for those with HRA, 80C, and home loans, the old regime can save ₹30,000–₹80,000 or more annually. Use this calculator before submitting your employer's investment declaration form (typically in April).
Section 80C has a combined cap of ₹1.5 lakh — that's LIC premium + PPF + ELSS + home loan principal + children's tuition fees all together. Exceeding ₹1.5 lakh gives you no additional tax benefit. Many people discover mid-year that their LIC premiums alone hit ₹1.2 lakh, leaving only ₹30,000 room for PPF or ELSS.
If your taxable income is within the rebate threshold (₹5 lakh old regime, ₹12 lakh new regime) but you paid excess TDS through the year, you must file an ITR to claim a refund. The rebate is not automatic — it must be claimed. If you skip filing because "I have no tax to pay," you lose the refund of any excess TDS already deducted by your employer.
Know how much home loan EMI you can afford after your tax savings. Use our free EMI calculator.