Income Tax Calculator 2025-26

Income Tax in India - FY 2025-26

Income tax in India is levied by the central government on the income earned by individuals, Hindu Undivided Families (HUFs), companies and other entities. For the financial year 2025-26 (assessment year 2026-27), taxpayers can choose between the Old Tax Regime and the New Tax Regime. The new regime is the default regime and offers lower tax rates but does not allow most deductions and exemptions that the old regime provides.

New Tax Regime Slabs (FY 2025-26)

The new tax regime for FY 2025-26 has the following slabs: Income up to Rs. 4,00,000 is tax-free. Rs. 4,00,001 to Rs. 8,00,000 is taxed at 5%. Rs. 8,00,001 to Rs. 12,00,000 at 10%. Rs. 12,00,001 to Rs. 16,00,000 at 15%. Rs. 16,00,001 to Rs. 20,00,000 at 20%. Rs. 20,00,001 to Rs. 24,00,000 at 25%. Income above Rs. 24,00,000 is taxed at 30%. A standard deduction of Rs. 75,000 is available for salaried individuals under the new regime.

Old Tax Regime Slabs

Under the old regime, for individuals below 60 years: income up to Rs. 2,50,000 is exempt, Rs. 2,50,001 to Rs. 5,00,000 is taxed at 5%, Rs. 5,00,001 to Rs. 10,00,000 at 20%, and above Rs. 10,00,000 at 30%. Senior citizens (60-80 years) get an exemption up to Rs. 3,00,000, while super senior citizens (above 80) get exemption up to Rs. 5,00,000. The old regime allows deductions under Section 80C (up to Rs. 1.5 lakh), 80D, HRA exemption and more.

Health and Education Cess

A 4% Health and Education Cess is levied on the total income tax amount (including surcharge, if applicable). This cess is used to fund health and education initiatives across India. The cess applies equally under both the old and new tax regimes.

Frequently Asked Questions

Which regime is better - Old or New?

If you have significant deductions (80C, 80D, HRA, home loan interest) totalling more than Rs. 3-4 lakh, the old regime may save more tax. If you have minimal deductions, the new regime with its lower rates is usually better. Use this calculator to compare both.

Is standard deduction available in both regimes?

Yes, standard deduction is available in both regimes for FY 2025-26. Under the new regime it is Rs. 75,000, and under the old regime it is Rs. 50,000 for salaried individuals.

What is surcharge on income tax?

Surcharge is an additional tax on income tax for high-income earners. For income between Rs. 50 lakh to Rs. 1 crore, it is 10%. Between Rs. 1 crore and Rs. 2 crore, it is 15%. The maximum surcharge rate under the new regime is capped at 25%. This calculator provides a basic estimate without surcharge.