Income Tax Calculator
FY 2025-26 | Comparison Summary
Income Tax Calculator: FY 2025-26 & FY 2026-27
Old vs. New Regime – Which One Saves You More?
Table of Contents
The Great Tax Debate
Whether you are planning your investments for Financial Year 2025-26 or looking ahead to FY 2026-27, the question remains the same: Which tax regime is better for my pocket? Since the tax slabs have remained stable across both years, our calculator and this guide provide a clear roadmap. We break down the complicated jargon into simple math so you can stop stressing and start saving.
How the Tax Calculator Works?
Our tool is designed to be a ‘smart’ comparison engine. Here’s what happens when you click ‘Calculate’:
- Automated Deductions: It automatically applies the Standard Deduction of ₹75,000 for the New Regime and ₹50,000 for the Old Regime.
- Exemption Math: It subtracts your HRA, 80C, and 80D claims for the Old Regime only.
- Side-by-Side Comparison: It runs your income through both sets of slabs simultaneously.
- The ’87A’ Factor: It checks if you qualify for the zero-tax rebate (up to ₹12 Lakh in the New Regime).
Choosing the wrong one could mean losing thousands of rupees. Our calculator does the heavy lifting for you, comparing both systems side-by-side so you can keep more of your hard-earned money.
Old vs. New: What’s the Difference?
The Old Regime
It’s all about deductions. If you have a home loan, pay insurance premiums (80C), or have medical bills, this regime rewards you for saving and spending in specific areas.
The New Regime
It’s all about simplicity. You get lower tax rates, but you have to give up most of those deductions. It’s designed for people who want a “no-fuss” tax experience.
The Tax Slabs
New Regime FY 2025-26 and FY 2026-27
The New Regime is now the default choice. It’s designed for simplicity—no receipts to collect, no LIC to track. For both FY 25-26 and FY 26-27, the slabs are as follows:
| Annual Income Slab | Tax Rate |
| 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% |
Old Regime FY 2025-26 and FY 2026-27
If you have a home loan, pay high rent (HRA), or invest heavily in PPF and Insurance, the Old Regime might still be your winner. Here are the slabs:
| Annual Income Slab | Tax Rate |
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Note: For Senior Citizens (60-80 years), the first ₹3 Lakh is tax-free. For Super Senior Citizens (80+ years), the first ₹5 Lakh is tax-free in this regime.
The Magic of Rebate u/s 87A
Section 87A is like a “discount” from the government.
- New Regime: If your taxable income is up to ₹12,00,000, you pay Zero tax thanks to this rebate.
- Old Regime: This rebate is usually capped for incomes up to ₹5,00,000.
Surcharge: For the High Earners
If you earn a lot, the government adds an extra fee on top of your tax called a Surcharge.
| Income Range | New Regime Surcharge | Old Regime Surcharge |
| Above ₹50 Lakh to ₹1 Crore | 10% | 10% |
| Above ₹1 Crore to ₹2 Crore | 15% | 15% |
| Above ₹2 Crore to ₹5 Crore | 25% | 25% |
| Above ₹5 Crore | 25% (Capped) | 37% |
Frequently Asked Questions (FAQs)
Do I need to submit investment proofs for the New Regime?
No. That’s the best part! The New Regime is paperwork-free because you don’t claim deductions like 80C or HRA.
Can I change my mind and switch regimes?
If you are a salaried employee, you can choose every year. If you have business income, you can generally only switch once in a lifetime.
What is the “Zero Tax” limit?
In the New Regime, if your taxable income is up to ₹12 Lakh, you pay ₹0 tax. For salaried people, this effectively means a salary up to ₹12.75 Lakh can be tax-free.
Is HRA (House Rent Allowance) available in the New Regime?
No. HRA exemptions are only available in the Old Regime.
What is Cess?
A 4% “Health and Education Cess” is added to your final tax amount in both regimes. Our calculator includes this automatically!
Is there any change in tax slabs for FY 2026-27?
No, the tax slabs and rules remain the same as FY 2025-26.
Can I claim my Home Loan interest in the New Regime?
No. Deduction for home loan interest on self-occupied property is not allowed in the New Regime.