Income Tax Calculator FY 2025-26 and FY 2026-27 — New Regime
Compute your new-regime tax — salary, capital gains and house property — with the ₹12 lakh rebate and marginal relief built in. Old-regime slabs are given below for reference.
| Income-tax Act, 1961 | Income-tax Act, 2025 | Provision |
|---|---|---|
| Section 115BAC | Section 202 | New tax regime (default) for individuals and HUFs |
| Section 87A | Section 156 | Rebate making income up to ₹12 lakh tax-free (residents) |
| Section 111A | Section 196 | STCG on listed equity - 20% |
| Section 112A | Section 198 | LTCG on listed equity - 12.5% above the exempt slice |
| Section 112 | Section 197 | LTCG - other assets, 12.5% |
| Sections 234B / 234C | Sections 424 / 425 | Interest on advance-tax shortfall / deferment |
| Section 24(b) | Section 22 | Home-loan interest deduction (old regime) |
| Sections 80C / 80D | Sections 123 / 126 | LIC-PF and health-insurance deductions (old regime) |
ℹ️ New Regime — Key Points
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The calculator above computes the new (default) regime for FY 2025-26 (assessment year 2026-27) — the final year assessed under the Income-tax Act, 1961 — and for Tax Year 2026-27 under the Income-tax Act, 2025. Old-regime slabs appear below for reference. Everything below explains the numbers behind it.
Income tax slabs for FY 2025-26 — new regime
The new regime under Section 202 is the default. Slab rates for FY 2025-26:
| Income slab | Rate |
|---|---|
| Up to ₹4,00,000 | 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% |
- Standard deduction: ₹75,000 for salaried taxpayers and pensioners.
- Section 87A rebate (s.156 of the Income-tax Act, 2025 from tax year 2026-27): resident individuals with total income up to ₹12 lakh pay zero tax (effectively ₹12.75 lakh for salaried, after the standard deduction). Marginal relief applies just above the threshold.
- The rebate does not cover special-rate income such as capital gains — those stay taxable even below ₹12 lakh.
- Health and Education Cess of 4% applies on the tax; surcharge starts above ₹50 lakh total income.
Income tax slabs for FY 2025-26 — old regime
The old regime keeps the deductions (80C, 80D, HRA, home-loan interest — Income-tax Act, 1961 heads) with higher slab rates. You must opt for it — it no longer applies by default.
| Income slab | Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
- Standard deduction: ₹50,000 (salaried/pensioners).
- Section 87A rebate: up to ₹12,500 where total income does not exceed ₹5 lakh (residents only).
- Basic exemption rises to ₹3 lakh for senior citizens (60+) and ₹5 lakh for super seniors (80+).
Worked example: ₹18 lakh salary, FY 2025-26
A resident salaried taxpayer earning ₹18,00,000, under the new regime:
| Step | Amount |
|---|---|
| Gross salary | ₹18,00,000 |
| Less: standard deduction | ₹75,000 |
| Taxable income | ₹17,25,000 |
| Up to ₹4,00,000 @ Nil | ₹0 |
| ₹4–8 lakh @ 5% | ₹20,000 |
| ₹8–12 lakh @ 10% | ₹40,000 |
| ₹12–16 lakh @ 15% | ₹60,000 |
| ₹16–17.25 lakh @ 20% | ₹25,000 |
| Tax | ₹1,45,000 |
| Add: cess @ 4% | ₹5,800 |
| Total tax payable | ₹1,50,800 |
The same taxpayer in the old regime, even after claiming the full ₹1.5 lakh under 123, ₹25,000 under 126 and the ₹50,000 standard deduction (taxable income ₹15,75,000), would pay about ₹2,96,400 including cess. The new regime saves roughly ₹1.45 lakh here — which is why the old regime now makes sense mainly where deductions are very large (big HRA, home-loan interest plus 123).
How to use the calculator
- Select the financial year (FY 2025-26 for the return due 31 July 2026).
- Enter your gross income — salary, business or profession, other sources.
- Weighing the old regime instead? List your deductions separately — for FY 2025-26 these are Income-tax Act, 1961 heads (80C, 80D, HRA, home-loan interest). The calculator computes the new regime; we compare both for you before filing.
- Check the result against advance tax already paid — a shortfall accrues interest — sections 234B and 234C of the Income-tax Act, 1961 for FY 2025-26, sections 424 and 425 of the Income-tax Act, 2025 from Tax Year 2026-27.
Frequently asked questions
Which tax regime applies by default for FY 2025-26?
The new regime under section 115BAC of the Income-tax Act, 1961 is the default for FY 2025-26; from tax year 2026-27 onwards the corresponding provision is section 202 of the Income-tax Act, 2025. You can opt for the old regime — salaried taxpayers simply choose it in the return each year, but taxpayers with business or professional income must file Form 10-IEA before the due date and get only one lifetime switch back.
Is income up to Rs 12 lakh really tax-free in FY 2025-26?
For resident individuals in the new regime, yes — the section 87A rebate (s.156 of the 2025 Act from tax year 2026-27) makes tax nil where total income is up to Rs 12 lakh (about Rs 12.75 lakh for salaried after the Rs 75,000 standard deduction), with marginal relief just above it. The rebate does not apply to special-rate income such as capital gains, and is not available to non-residents.
What is the standard deduction for FY 2025-26?
Rs 75,000 in the new regime and Rs 50,000 in the old regime, for salaried taxpayers and pensioners.
Can NRIs claim the section 87A rebate?
No. The rebate is available only to resident individuals. An NRI pays tax from the first slab above the basic exemption, under either regime — one of several ways NRI computations differ.
What is the ITR due date for FY 2025-26?
31 July 2026 for taxpayers not requiring audit, and 31 October 2026 where audit applies. Filing by the due date also protects carry-forward of losses.
When does the old regime still win?
When deductions are unusually large — typically substantial HRA, home-loan interest under Section 22, plus full 123 and 126. Run both numbers in the calculator above; for most salaried taxpayers without a home loan, the new regime now produces the lower tax.
Rates as per the Finance Act applicable to FY 2025-26 (AY 2026-27), Income-tax Act, 1961. General information, not tax advice — your computation depends on your facts. Vijay R Singh & Co., Chartered Accountants · FRN 136869W · ICAI M.No. 153926 · Mumbai.