Calculating your income tax in India has never been more confusing — or more important. With two tax regimes now in play, millions of salaried employees are unsure which regime saves them more money. Our free Income Tax Calculator India solves this instantly: enter your salary details and see a complete New Regime vs Old Regime comparison side by side.
New Tax Regime vs Old Tax Regime — What Changed in FY 2025-26?
The Union Budget 2025 made the New Tax Regime the default regime while sweetening it with a higher standard deduction of Rs 75,000 (up from Rs 50,000) and a rebate that makes income up to Rs 7 lakh completely tax-free. The Old Regime remains available for those with significant deductions.
New Regime Tax Slabs FY 2025-26
- Up to Rs 3 lakh — Nil
- Rs 3 lakh to Rs 7 lakh — 5%
- Rs 7 lakh to Rs 10 lakh — 10%
- Rs 10 lakh to Rs 12 lakh — 15%
- Rs 12 lakh to Rs 15 lakh — 20%
- Above Rs 15 lakh — 30%
Key benefit: Standard deduction of Rs 75,000 and Section 87A rebate making income up to Rs 7 lakh completely tax-free under the new regime.
Old Regime Tax Slabs
- Up to Rs 2.5 lakh — Nil
- Rs 2.5 lakh to Rs 5 lakh — 5%
- Rs 5 lakh to Rs 10 lakh — 20%
- Above Rs 10 lakh — 30%
The old regime allows deductions under 80C (up to Rs 1.5 lakh), 80D, HRA exemption, home loan interest (Section 24b), NPS (80CCD), and many more. If your total deductions are large, the old regime can still save more tax.
Which Regime Is Better for You?
The answer depends on your total deductions. As a rule of thumb: if your total deductions including standard deduction exceed Rs 3.75 lakh (for income up to Rs 15 lakh), the old regime is likely better. For those without significant deductions — such as new employees, freelancers, or those without home loans — the new regime generally saves more tax.
The fastest way to know is to use our Income Tax Calculator which calculates both regimes simultaneously and tells you exactly how much you save by choosing the better option.
How to Use the Income Tax Calculator
- Enter your Basic Salary, HRA, allowances, and bonus
- Fill in your deductions — 80C, 80D, home loan interest, NPS
- Select your city type (Metro or Non-Metro) for HRA calculation
- The calculator shows New Regime and Old Regime tax side by side
- The winning regime is highlighted with your exact savings amount
Important Notes
- All figures include 4% Health and Education Cess
- Surcharge applies for income above Rs 50 lakh
- This calculator is for salaried individuals. Business income has different rules
- Consult a chartered accountant for personalised tax planning
Calculate your exact tax liability now using our free Income Tax Calculator for FY 2025-26. No login, no data stored, completely free.
