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

Income Tax Slabs for FY 2025–26 (New Regime)

The new regime offers wider slabs and a ₹75,000 standard deduction, making income up to ₹12,75,000 tax-free for many salaried employees. It is the most searched figure in Indian tax planning, and the arithmetic behind it is exact rather than approximate.

Why ₹12,75,000 is Tax-Free Under the New Regime

A salaried taxpayer earning ₹12,75,000 subtracts the standard deduction of ₹75,000, leaving a taxable income of ₹12,00,000. On this amount, tax is ₹60,000 (calculated as ₹0 on the first ₹4,00,000 + ₹20,000 on the next ₹4,00,000 + ₹40,000 on the final ₹4,00,000). The Section 87A rebate applies fully when taxable income is ₹12,00,000 or less, eliminating up to ₹60,000 of tax. After the 4% health and education cess is applied to ₹0, the total tax bill is ₹0.

Just past ₹12,00,000, marginal relief stops the cliff

Without marginal relief, earning just ₹1 more would trigger the full ₹60,000-plus rebate loss, creating a cliff. The law prevents this by capping tax at the amount by which your taxable income exceeds ₹12,00,000. At ₹12,10,000 taxable income, tax is ₹10,000, not ₹61,500. This protection applies until taxable income reaches ₹12,70,588, where ordinary computed tax equals the excess amount and relief stops adding value. This calculator applies marginal relief; many others do not.

New Regime versus Old Regime: Run Your Own Numbers

The old regime uses narrower slabs (0%, 5%, 20%, 30%) and a smaller ₹50,000 standard deduction, but allows deductions under Section 80C (capped ₹1,50,000), HRA, home-loan interest, and other relief. The new regime offers wider slabs but accepts only the standard deduction. There is no fixed break-even deduction; instead, compare your tax under both regimes using this calculator. If your Section 80C savings, HRA, and other deductions exceed the difference in standard deduction and slab width, the old regime may be cheaper. Try both scenarios with your own figures. For HRA deductions or long-term savings planning, use the linked tools.

Not modelled: surcharge on very high incomes, capital gains (which have their own tax rates), or income other than salary. Confirm your calculated tax with a tax professional or the Income Tax Department before filing.