Income Tax Calculator India FY 2025-26 (AY 2026-27) — Compare Old vs New Tax Regime and Take-Home Salary
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Income Tax Slabs for FY 2025-26 (AY 2026-27)
These are the income tax slab rates for the financial year 2025-26 (assessment year 2026-27) that apply to salaried individuals in India. A 4% health and education cess is added to the tax amount, and surcharge applies on income above ₹50 lakh.
New tax regime slabs (default)
| Annual taxable income | Tax rate |
|---|---|
| Up to ₹4,00,000 | 0% (Nil) |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Old tax regime slabs (below 60 years)
| Annual taxable income | Tax rate |
|---|---|
| Up to ₹2,50,000 | 0% (Nil) |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Under the new regime, the Section 87A rebate makes tax zero for taxable income up to ₹12 lakh. With the ₹75,000 standard deduction, salaried employees earning up to ₹12.75 lakh a year pay no income tax in FY 2025-26. Marginal relief ensures income slightly above ₹12 lakh is not taxed more than the amount earned above the limit.
Old vs New Tax Regime: Which Is Better for Salaried Employees?
The new tax regime is the default and works best if you claim few deductions. It offers lower slab rates, a ₹75,000 standard deduction and zero tax up to ₹12 lakh of taxable income — but you give up HRA, LTA, Section 80C, 80D and most other exemptions.
The old tax regime keeps deductions such as house rent allowance (HRA), Section 80C investments up to ₹1.5 lakh (EPF, PPF, ELSS, life insurance), Section 80D health insurance premiums, and home-loan interest up to ₹2 lakh under Section 24(b). It can win if your total deductions are large — typically several lakhs — relative to your salary.
The break-even depends on your income and deduction mix, so the fastest way to decide is to enter your salary above: TaxMath calculates your tax under both regimes, shows the slab breakdown, and recommends the regime that leaves you with a higher monthly take-home salary.
Frequently Asked Questions
Is income up to ₹12 lakh tax-free in FY 2025-26?
Yes, under the new tax regime the Section 87A rebate makes tax nil for taxable income up to ₹12 lakh in FY 2025-26 (AY 2026-27). Salaried employees also get a ₹75,000 standard deduction, so a salary of up to ₹12.75 lakh can result in zero income tax under the new regime.
What is the standard deduction for salaried employees in FY 2025-26?
Salaried employees get a standard deduction of ₹75,000 under the new tax regime and ₹50,000 under the old tax regime for FY 2025-26. It is applied automatically to salary income — no proof or investment is required.
Which tax regime is better for salaried employees — old or new?
It depends on your deductions. If you claim large deductions such as HRA, home-loan interest under Section 24(b), 80C investments and 80D health insurance, the old regime may save more. If you claim few deductions, the new regime is usually better because of its lower slab rates, higher standard deduction and the ₹12 lakh Section 87A rebate. TaxMath compares both regimes side by side and recommends the one with lower tax.
What are the income tax slabs for FY 2025-26 under the new regime?
New regime slabs for FY 2025-26 (AY 2026-27): 0% up to ₹4 lakh, 5% from ₹4–8 lakh, 10% from ₹8–12 lakh, 15% from ₹12–16 lakh, 20% from ₹16–20 lakh, 25% from ₹20–24 lakh, and 30% above ₹24 lakh. A 4% health and education cess applies on the tax amount.
Can I claim HRA and Section 80C in the new tax regime?
No. Popular exemptions and deductions such as HRA, LTA, Section 80C (PF, ELSS, LIC), 80D and home-loan interest on a self-occupied house are not available in the new regime. The main benefits available to salaried taxpayers in the new regime are the ₹75,000 standard deduction and the employer's NPS contribution under Section 80CCD(2).
How do I calculate my in-hand (take-home) salary from CTC?
Enter your annual salary in TaxMath to see your estimated income tax and net monthly income under both regimes. Your actual in-hand salary also depends on components such as employer and employee PF contributions, professional tax and any other salary deductions made by your employer.
Is TaxMath free to use?
Yes, TaxMath is completely free. There is no sign-up and your salary details are processed in your browser — nothing leaves your device.