Enter total salary before any deductions. Standard deduction applied automatically.
Old Regime Deductions (not applicable in new regime)
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.
New Regime vs Old Regime — Which is Better?
From FY 2023-24, the New Tax Regime became the default. You must actively opt into the Old Regime when filing your ITR if you want to claim deductions.
New Regime advantages: Lower slab rates, higher standard deduction (₹75,000), zero tax up to ₹12 lakh (after rebate). No paperwork for deductions.
Old Regime advantages: Allows deductions — 80C (₹1.5L), 80D (₹25K), HRA exemption, home loan interest (₹2L), NPS (₹50K). Worth it only if you actually invest and claim these.
Key rule: You cannot switch regimes mid-year if you have business income. Salaried employees can switch every year at time of ITR filing.
How Tax is Calculated — FY 2025-26
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.
Example Calculation
Frequently Asked Questions
New regime is better if your total deductions (80C + 80D + HRA + others) are below ₹3–3.5 lakh. Old regime is better if you actively invest and claim high deductions. Use this calculator to compare with your exact numbers — the answer varies by income level and deduction amount.
Yes — for FY 2025-26, the Section 87A rebate in the new regime means zero tax if your taxable income (after ₹75,000 standard deduction) is up to ₹12 lakh. So gross salary up to ₹12.75 lakh has zero tax liability under the new regime.
Salaried employees with no business income can switch regimes every year when filing their ITR. If you have business or professional income, you can switch only once. The new regime is the default — you must explicitly opt for the old regime.
The new regime allows very few deductions: ₹75,000 standard deduction, NPS employer contribution (80CCD(2)), Agniveer corpus, and a few others. It does NOT allow 80C, 80D, HRA exemption, home loan interest deduction, or most other common deductions.
Surcharge applies at 10% for income ₹50L–₹1Cr, 15% for ₹1–2Cr, 25% for ₹2–5Cr, and 37% above ₹5Cr (25% in new regime). Surcharge is applied on the tax amount, and then 4% health and education cess is added on top.
Related Calculators
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.