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FY 2025-26 & FY 2026-27 (AY 2026-27 & 2027-28)
New vs Old Tax Regime Calculator
Compare your total tax liability under Section 115BAC vs the Old Regime. Automatically factors in the ₹75,000 standard deduction, Sec 87A rebate, and itemized deductions.
1. Income Details
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2. Deductions (For Old Regime)
Old Slabs Only 🎉
Recommendation
New Regime Saves ₹14,200
Based on your ₹12,00,000 income and entered deductions, the New Tax Regime offers lower net tax liability.
New Regime Default
₹70,200
Total Tax Payable (incl. Cess)
Standard Deduction ₹75,000
Taxable Income ₹11,25,000
Base Income Tax ₹67,500
Rebate u/s 87A ₹0
Health & Edu Cess (4%) ₹2,700
Old Regime Optional
₹84,400
Total Tax Payable (incl. Cess)
Standard Deduction ₹50,000
Total Deductions ₹3,95,000
Taxable Income ₹8,05,000
Rebate u/s 87A ₹0
Health & Edu Cess (4%) ₹3,246
Key Highlights for FY 2025-26 & 2026-27:
- Standard Deduction: Raised to ₹75,000 under Section 115BAC (New Regime).
- Zero Tax Threshold: Salary earners up to ₹12,75,000 pay ₹0 tax under New Regime due to the ₹75k standard deduction + ₹12L 87A rebate.
- Breakeven Deductions: If you earn ₹15 Lakhs, you need over about ₹5.9 Lakhs of deductions (including the ₹50,000 standard deduction) to beat the New Regime.
How New Regime Tax is Calculated (FY 2025-26 / 2026-27)
Up to ₹4,00,000 0% (Nil)
₹4,00,001 to ₹8,00,000 5%
₹8,00,001 to ₹12,00,000 10%
₹12,00,001 to ₹16,00,000 15%
₹16,00,001 to ₹20,00,000 20%
₹20,00,001 to ₹24,00,000 25%
Above ₹24,00,000 30%
Frequently Asked Questions
What is the tax-free limit under the New Tax Regime for FY 2025-26 and 2026-27?
Under the New Tax Regime (Section 115BAC), taxable income up to ₹12,00,000 has no tax because of the Section 87A rebate of up to ₹60,000. Combined with the ₹75,000 standard deduction, salaried employees with a gross salary of up to ₹12,75,000 pay zero income tax. Budget 2026 kept these limits for FY 2026-27.
What is the standard deduction amount for salaried taxpayers and pensioners?
Under the New Tax Regime, the standard deduction for salaried individuals and pensioners is ₹75,000 (increased from ₹50,000). Under the Old Tax Regime, the standard deduction remains ₹50,000. Family pension standard deduction is ₹25,000 under the New Regime.
Which regime is better if I have high 80C, 80D, and Home Loan interest deductions?
Only if your deductions are large. With the wider new-regime slabs, at ₹15 lakh of salary the old regime wins only if total deductions (80C, 80D, HRA, home loan interest, NPS and the ₹50,000 standard deduction) exceed about ₹5.9 lakh; at ₹20 lakh the breakeven is about ₹7.6 lakh. Below these levels the New Regime gives lower tax.
Can I switch between the New and Old Tax Regime every financial year?
Salaried individuals with no business or professional income can freely choose between Old and New regimes each year when filing Form ITR-1 or ITR-2. Taxpayers with business or professional income (ITR-3/ITR-4) can only switch back to the Old Regime once in a lifetime.
How does Marginal Relief work under Section 87A for income just above ₹12,00,000?
Under Section 87A marginal relief for the New Regime, if taxable income slightly exceeds ₹12,00,000 (e.g. ₹12,10,000), the income tax payable cannot exceed the excess income over ₹12,00,000 (i.e. ₹10,000), preventing a situation where earning a little more causes a disproportionately high tax bill.
Are Section 80C, 80D, and HRA deductions available under the New Tax Regime?
No. Chapter VI-A deductions including Section 80C (PPF, ELSS, LIC), Section 80D (health insurance), Section 10(13A) HRA, and Section 24(b) self-occupied home loan interest are disallowed under the New Regime.
Is employer contribution to NPS under Section 80CCD(2) allowed under the New Tax Regime?
Yes. Employer contribution to the National Pension System (NPS) under Section 80CCD(2) up to 14% of salary (basic + DA) is fully deductible even under the New Tax Regime.
What are the current tax slabs under the New Tax Regime (Section 115BAC)?
For FY 2025-26 and FY 2026-27 the slabs are: up to ₹4,00,000: Nil; ₹4,00,001 to ₹8,00,000: 5%; ₹8,00,001 to ₹12,00,000: 10%; ₹12,00,001 to ₹16,00,000: 15%; ₹16,00,001 to ₹20,00,000: 20%; ₹20,00,001 to ₹24,00,000: 25%; above ₹24,00,000: 30%. They were introduced by Budget 2025 and left unchanged by Budget 2026.
Is health and education cess added on top of the calculated income tax?
Yes. A mandatory 4% Health and Education Cess is calculated on total basic income tax plus applicable surcharge across both tax regimes.
Does this income tax calculator store or transmit my salary details?
No. All salary computations, deduction evaluations, and regime comparison metrics run strictly client-side in your local browser. No personal or financial information is transmitted to any server.