Income Tax Calculator (New & Old Regime), FY 2025-26 & 2026-27
This income tax calculator compares the New and Old regime for FY 2025-26 and FY 2026-27. Enter your salary, deductions, and age to instantly see your tax payable, taxable income, Section 87A rebate, surcharge, cess, and which regime saves you more. All calculations run privately in your browser.
Key Takeaways
Tax Payable New Regime
Summary
Tax Calculation Details
| Parameter | Amount | Notes |
|---|
Income Tax Calculator India — FY 2025-26 & FY 2026-27
The PlanMyReturns Income Tax Calculator helps you calculate your exact income tax and compare the old vs new tax regime for FY 2025-26 (AY 2026-27) and FY 2026-27 (AY 2027-28). Enter your salary, deductions, and get an instant side-by-side comparison with the best regime recommendation.
Quick answer: Under the new tax regime for FY 2025-26, income up to ₹12 lakh is completely tax-free due to the Section 87A rebate of ₹60,000. For salaried individuals, the effective tax-free limit is ₹12.75 lakh after the ₹75,000 standard deduction.
Income Tax Slabs FY 2025-26 (AY 2026-27)
The following are the income tax slabs applicable for the financial year 2025-26 under both the new and old tax regime.
New Tax Regime — FY 2025-26
| 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% |
Note: Standard deduction of ₹75,000 is available for salaried individuals under the new regime. Section 87A rebate of ₹60,000 applies if taxable income does not exceed ₹12 lakh. 4% health and education cess is added on tax payable.
Old Tax Regime — FY 2025-26
For individuals below 60 years:
| 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% |
For senior citizens (60–79 years): Basic exemption limit is ₹3,00,000. Above ₹3L to ₹5L: 5%. Above ₹5L to ₹10L: 20%. Above ₹10L: 30%.
For super senior citizens (80+ years): Basic exemption limit is ₹5,00,000. Above ₹5L to ₹10L: 20%. Above ₹10L: 30%.
Income Tax Slabs FY 2026-27 (AY 2027-28)
No changes in FY 2026-27: The Union Budget 2026 did not change the income tax slab rates. The same slabs, standard deduction (₹75,000), and Section 87A rebate (₹60,000 for income up to ₹12 lakh) that applied in FY 2025-26 continue to apply unchanged in FY 2026-27.
The income tax slabs for FY 2026-27 (AY 2027-28) are identical to FY 2025-26. Use the tables above for reference. The due date for filing ITR for FY 2026-27 (non-audit cases) is 31 July 2027.
Income Tax by Salary — Real Examples
Below is a quick reference table showing the approximate income tax payable under both regimes for common salary levels in FY 2025-26. These figures include the 4% cess and assume salaried individuals claiming only the standard deduction of ₹75,000 under the new regime.
| Annual Salary | New Regime Tax | Old Regime Tax* | Saving (New) |
|---|---|---|---|
| ₹6,00,000 | ₹0 | ₹32,500 | ₹32,500 |
| ₹8,00,000 | ₹0 | ₹75,400 | ₹75,400 |
| ₹10,00,000 | ₹20,800 | ₹1,17,000 | ₹96,200 |
| ₹12,00,000 | ₹0 | ₹1,95,000 | ₹1,95,000 |
| ₹15,00,000 | ₹1,01,400 | ₹2,34,000 | ₹1,32,600 |
| ₹20,00,000 | ₹2,10,600 | ₹3,51,000 | ₹1,40,400 |
| ₹25,00,000 | ₹3,51,000 | ₹5,07,000 | ₹1,56,000 |
| ₹30,00,000 | ₹5,04,000 | ₹8,19,000 | ₹3,15,000 |
| ₹50,00,000 | ₹11,04,000 | ₹16,51,500 | ₹5,47,500 |
*Old regime figures assume only ₹1,50,000 in Section 80C deductions and ₹75,000 standard deduction. Actual tax under old regime may be lower with additional deductions (HRA, 80D, home loan interest). Includes 4% cess. Figures are indicative.
Old vs New Tax Regime — Which Is Better for You?
Choosing the right regime is the most important income tax decision you can make. Here is a straightforward comparison to help you decide.
| Factor | New Regime | Old Regime |
|---|---|---|
| Basic exemption limit | ₹4,00,000 | ₹2,50,000 |
| Standard deduction | ₹75,000 | ₹75,000 |
| Section 80C (PPF, ELSS, LIC) | Not allowed | Up to ₹1,50,000 |
| HRA exemption | Not allowed | Allowed |
| Section 80D (medical insurance) | Not allowed | Up to ₹75,000 |
| Home loan interest (Section 24b) | Not allowed (self-occupied) | Up to ₹2,00,000 |
| NPS (80CCD 1B) | Not allowed | Up to ₹50,000 |
| Employer NPS (80CCD 2) | Allowed (up to 14% of basic) | Allowed (up to 10% of basic) |
| Section 87A rebate | ₹60,000 (income up to ₹12L) | ₹12,500 (income up to ₹5L) |
| Default regime | Yes — default from FY 2023-24 | Must opt-in explicitly |
| Best suited for | Lower deduction claimants | Active tax savers with high deductions |
Rule of thumb: If your total eligible deductions exceed ₹3.75 lakh (80C + HRA + 80D + home loan interest), the old regime is likely better. If your deductions are below this threshold, the new regime saves more tax. Use the calculator above to check your exact numbers.
Section 87A Rebate — Complete Guide
Section 87A is the most impactful provision for middle-income taxpayers in India. Here is everything you need to know.
What is Section 87A? Section 87A allows resident individuals to claim a full rebate on their income tax if their net taxable income does not exceed the specified limit. The rebate amount equals the tax payable, subject to a maximum cap — meaning eligible taxpayers pay zero tax.
Section 87A rebate for FY 2025-26 and FY 2026-27:
| Regime | Income Limit | Max Rebate | Effective Tax |
|---|---|---|---|
| New Regime | Up to ₹12,00,000 | ₹60,000 | ₹0 |
| Old Regime | Up to ₹5,00,000 | ₹12,500 | ₹0 |
Important limitation: The Section 87A rebate applies only on income taxed at normal slab rates. Special rate income such as short-term capital gains (STCG) on equity shares under Section 111A and long-term capital gains (LTCG) under Section 112A is not eligible for the rebate, even if total income is within the limit.
Salaried individuals: For salaried taxpayers under the new regime, the Section 87A rebate effectively means zero tax for gross salary up to ₹12.75 lakh (₹12 lakh taxable income after ₹75,000 standard deduction).
How to Calculate Income Tax — Step-by-Step
Understanding the calculation process helps you verify any calculator result and plan your taxes better.
- Start with gross total income — Add salary, house property income, business income, capital gains, and other income.
- Apply deductions — Under the old regime, reduce eligible deductions (80C, HRA, 80D, home loan interest, etc.). Under the new regime, apply only the standard deduction of ₹75,000.
- Arrive at net taxable income — This is what the tax slabs are applied to.
- Apply slab rates — Use the applicable slab table to calculate tax on each portion of income.
- Apply Section 87A rebate — If eligible, deduct the rebate from tax computed.
- Add 4% health and education cess — Cess is calculated on the tax after rebate.
- Add surcharge if applicable — Applies for income above ₹50 lakh.
- Deduct TDS already paid — The balance is your net tax payable or refundable.
Worked example — ₹15 lakh salary under new regime
| Gross salary | ₹15,00,000 |
| Less: standard deduction | ₹75,000 |
| Net taxable income | ₹14,25,000 |
| Tax on ₹0–₹4L @ Nil | ₹0 |
| Tax on ₹4L–₹8L @ 5% | ₹20,000 |
| Tax on ₹8L–₹12L @ 10% | ₹40,000 |
| Tax on ₹12L–₹14.25L @ 15% | ₹33,750 |
| Total tax before cess | ₹93,750 |
| 87A rebate | Nil (income > ₹12L) |
| 4% cess on ₹93,750 | ₹3,750 |
| Total tax payable | ₹97,500 |
Surcharge on Income Tax
Surcharge is an additional levy on the income tax amount for taxpayers with higher income. It is not levied on income directly but on the calculated income tax.
| Income Range | Surcharge Rate (New Regime) | Surcharge Rate (Old Regime) |
|---|---|---|
| Up to ₹50,00,000 | Nil | Nil |
| ₹50,00,001 to ₹1,00,00,000 | 10% | 10% |
| ₹1,00,00,001 to ₹2,00,00,000 | 15% | 15% |
| ₹2,00,00,001 to ₹5,00,00,000 | 25% (capped) | 25% |
| Above ₹5,00,00,000 | 25% (capped) | 37% |
Note: Under the new tax regime, the maximum surcharge rate is capped at 25% regardless of income level. Marginal relief is applicable at each surcharge threshold.
Income Tax Filing Dates — FY 2025-26 and FY 2026-27
| Assessment Year | Non-Audit Cases | Audit Cases | Belated Return |
|---|---|---|---|
| AY 2026-27 (FY 2025-26) | 31 July 2026 | 31 October 2026 | 31 December 2026 |
| AY 2027-28 (FY 2026-27) | 31 July 2027 | 31 October 2027 | 31 December 2027 |
About This Income Tax Calculator
The PlanMyReturns Income Tax Calculator is built for salaried employees, self-employed professionals, and individuals with multiple income sources. It covers all major income types and deductions, applies the correct rebates and cess automatically, and gives you an instant regime comparison so you always know which option saves more.
Key features of this calculator:
- Supports FY 2024-25, FY 2025-26, and FY 2026-27
- Old regime and new regime comparison in one click
- Section 87A rebate applied automatically
- Standard deduction, HRA, 80C, 80D, NPS, home loan interest inputs
- Capital gains (STCG + LTCG) handled separately at special rates
- Age-based exemption for senior and super senior citizens
- 4% cess and surcharge calculated automatically
- Shareable plan with downloadable CSV and image
Frequently Asked Questions
It depends on your deductions. If you claim more than ₹3.75 lakh in deductions (80C + HRA + 80D + home loan interest combined), the old regime is usually better. For those with fewer deductions, the new regime saves more. Use the calculator above to compare both regimes instantly with your exact numbers.
Yes, under the new tax regime for FY 2025-26 (AY 2026-27), taxpayers with taxable income up to ₹12 lakh pay zero tax due to the ₹60,000 rebate under Section 87A. For salaried individuals, the effective tax-free limit extends to ₹12.75 lakh after the ₹75,000 standard deduction. However, capital gains and special rate income are excluded from this benefit.
Under the new regime for FY 2025-26, a salaried individual earning ₹12 lakh gross pays zero income tax. After the ₹75,000 standard deduction, taxable income becomes ₹11.25 lakh, which is below the ₹12 lakh Section 87A rebate threshold. Under the old regime without deductions, the tax would be approximately ₹1,87,500 plus cess.
Under the new regime for FY 2025-26, income tax on a ₹15 lakh salary is approximately ₹97,500 before cess, and ₹1,01,400 after 4% cess. Under the old regime with ₹1.5 lakh in Section 80C deductions, tax is approximately ₹2,10,000. The new regime saves approximately ₹1,08,600 in this case.
Yes. Salaried individuals and those without business income can switch between old and new tax regime every financial year when filing their ITR. Taxpayers with business or professional income can switch to the old regime only once and cannot switch back to the new regime subsequently.
Yes. A standard deduction of ₹75,000 is available for salaried individuals and pensioners under the new tax regime for FY 2025-26 and FY 2026-27. This deduction is applied automatically before calculating taxable income.
The new tax regime allows very limited deductions. You can claim the ₹75,000 standard deduction (salaried individuals), employer contribution to NPS under Section 80CCD(2) up to 14% of basic salary, and deduction for Agniveer Corpus Fund. Most other deductions including 80C, HRA, 80D, and home loan interest under Section 24b are not available under the new regime.
No. House Rent Allowance (HRA) exemption is not available under the new tax regime. HRA can only be claimed under the old tax regime. If you pay significant rent, this is often a key reason to evaluate the old regime.
Under the new tax regime, senior citizens (60-79 years) have the same slab rates as other taxpayers with no higher basic exemption limit. Under the old tax regime, senior citizens get a basic exemption of ₹3 lakh (vs ₹2.5 lakh for those below 60). Super senior citizens (80+ years) get a basic exemption of ₹5 lakh under the old regime only.
The last date to file income tax return (ITR) for FY 2025-26 (AY 2026-27) without penalty is 31 July 2026 for non-audit cases. For tax audit cases, the due date is 31 October 2026. A belated return can be filed until 31 December 2026 with a late filing fee under Section 234F.
Yes. The Section 87A rebate is applied automatically. Under the new regime for FY 2025-26, a rebate of up to ₹60,000 is available if taxable income does not exceed ₹12 lakh. Under the old regime, a rebate of ₹12,500 is available if taxable income does not exceed ₹5 lakh.
Yes. A 4% health and education cess is applied automatically on the calculated income tax amount. For example, if your tax liability is ₹1,00,000, the cess would be ₹4,000, making your total tax payable ₹1,04,000.
Surcharge is an additional tax on top of income tax for high-income earners. Under the new tax regime, the surcharge is 10% for income between ₹50 lakh and ₹1 crore, 15% between ₹1 crore and ₹2 crore, and 25% above ₹2 crore (capped). Marginal relief applies at each threshold to prevent sudden jumps in tax liability.
No. The Union Budget 2026 did not change the income tax slab rates for FY 2026-27. The same slabs, standard deduction (₹75,000), and Section 87A rebate (₹60,000 for income up to ₹12 lakh) that applied in FY 2025-26 continue to apply unchanged in FY 2026-27.
Under the new tax regime for FY 2025-26 and FY 2026-27, the basic exemption limit is ₹4 lakh. Income from ₹0 to ₹4 lakh is taxed at Nil. This is higher than the old regime’s basic exemption of ₹2.5 lakh for individuals below 60 years.
To calculate income tax on salary: (1) Start with gross salary. (2) Subtract standard deduction (₹75,000 under new regime). (3) Add any other income. (4) Apply applicable tax slabs. (5) Deduct Section 87A rebate if eligible. (6) Add 4% cess. The result is your total tax payable. Use the PlanMyReturns calculator above for an instant, accurate result.