Enter total salary before any deductions. Standard deduction applied automatically.

PPF, ELSS, EPF, LIC, home loan principal — max ₹1.5 lakh

Health insurance premium — max ₹25,000 (self) or ₹50,000 (senior parents)

Use our HRA Calculator to find your exact exemption amount

80E (education loan), 80G (donations), NPS 80CCD(1B) etc.

Tax Comparison — New vs Old Regime

New Regime vs Old Regime — Which is Better?

💡 New regime is better for most people earning under ₹15 LPA. Old regime only wins when total deductions exceed the break-even point.

New Regime Tax Slabs — FY 2025-26

Taxable Income SlabTax RateTax on This Slab
Up to ₹4 lakh0%₹0
₹4L – ₹8L5%Up to ₹20,000
₹8L – ₹12L10%Up to ₹40,000
₹12L – ₹16L15%Up to ₹60,000
₹16L – ₹20L20%Up to ₹80,000
₹20L – ₹24L25%Up to ₹1,00,000
Above ₹24L30%30% on amount above ₹24L

New vs Old Regime — Break-Even by Income

Gross IncomeNew Regime TaxBreak-Even DeductionsVerdict
Up to ₹13.7 LPA₹0N/ANew regime — zero tax
₹15 LPA~₹47,320~₹3.5 lakhNew usually better
₹20 LPA~₹1,04,000~₹4.5 lakhDepends on HRA
₹25 LPA~₹1,52,100~₹5 lakhOld wins with home loan
₹30 LPA~₹2,34,000~₹6 lakhOld competitive
₹40 LPA+₹8.88L+~₹7-8 lakhOld regime often wins
👨‍💼
Reviewed by mycalcu.in Finance Team
All calculators are verified against official government sources including the Income Tax Act, EPFO regulations, Payment of Gratuity Act, and PFRDA guidelines. Tax slabs updated after every Union Budget. Last reviewed: April 2026.

How Tax is Calculated — FY 2025-26

Tax = Slab Tax on Taxable Income − 87A Rebate + 4% Cess

New Regime Slabs — FY 2025-26

0% up to ₹4L · 5% from ₹4–8L · 10% from ₹8–12L · 15% from ₹12–16L · 20% from ₹16–20L · 25% from ₹20–24L · 30% above ₹24L. Standard deduction: ₹75,000. Section 87A rebate: zero tax if income ≤ ₹12L.

Old Regime Slabs

0% up to ₹2.5L · 5% from ₹2.5–5L · 20% from ₹5–10L · 30% above ₹10L. Standard deduction: ₹50,000. Section 87A rebate: zero tax if income ≤ ₹5L.

⚠️ Tax slabs shown are for FY 2025-26. Slabs may change in future Budgets. Always verify with a tax professional before filing.

Example Calculation

📋 New vs Old Regime — Quick Comparison
₹8LNew: ₹0 (rebate) · Old: ₹0 (rebate) — both same
₹12LNew: ₹0 (rebate) · Old: ₹26,000 (with max 80C) — New wins
₹15LNew: ₹45,500 · Old: ₹23,400 (with ₹3.5L deductions) — Old wins
₹20LNew: ₹1,04,000 · Old: ₹78,000 (with ₹4L deductions) — Old wins

Frequently Asked Questions

Under the new tax regime, ₹10 LPA attracts zero income tax. After ₹75,000 standard deduction, taxable income is ₹9.25 lakh — within the ₹12L Section 87A rebate limit.

New regime is better for most salaried employees earning up to ₹15 LPA — zero or minimal tax without needing any deductions. Old regime wins above ₹20 LPA if you have substantial deductions: HRA (₹2-5L), home loan interest (₹2L), NPS (₹50K), 80C (₹1.5L), 80D (₹25K).

₹75,000/year standard deduction applies automatically to all salaried employees under the new regime. No investment or proof required. Under old regime, standard deduction is ₹50,000.

If your taxable income (after standard deduction) is ₹12 lakh or less under the new regime, your entire income tax liability is waived under Section 87A. This is why salaries up to ~₹13.7 LPA effectively pay zero tax.

Surcharge applies on income above ₹50 lakh. At ₹50L-₹1Cr: 10% surcharge. At ₹1Cr-₹2Cr: 15%. Above ₹2Cr: 25%. Surcharge is applied on tax amount, not income — dramatically increasing effective tax rate at very high incomes.

Disclaimer: Results are for informational and educational purposes only — not financial, tax, or legal advice. Tax slabs, rates (EPF, PPF, home loan), and rules shown are based on data available in 2025 and may change. Always verify with a qualified professional or official government sources before making financial decisions.