Income Tax Calculator 2026 - Complete Guide for FY 2025-26

What is the New Income Tax Regime?

The new income tax regime, introduced in 2020, offers simplified taxation with lower rates but without the benefit of deductions like Section 80C, HRA, and medical insurance. For FY 2025-26, the new regime provides:

• Basic Exemption Limit: ₹4,00,000 (up from ₹3,00,000 in previous years)
• Standard Deduction: ₹75,000 for salaried individuals
• Section 87A Rebate: Up to ₹60,000 for income up to ₹12,00,000
• Lower Tax Rates: Progressive rates from 5% to 30% across multiple slabs

New Tax Regime Slabs - FY 2025-26

Income Range	Tax Rate	Tax Calculation
Up to ₹4,00,000	0%	Tax-Free
₹4,00,000 to ₹8,00,000	5%	5% on amount above ₹4,00,000
₹8,00,000 to ₹12,00,000	10%	₹20,000 + 10% on amount above ₹8,00,000
₹12,00,000 to ₹16,00,000	15%	₹60,000 + 15% on amount above ₹12,00,000
₹16,00,000 to ₹20,00,000	20%	₹1,20,000 + 20% on amount above ₹16,00,000
₹20,00,000 to ₹24,00,000	25%	₹2,00,000 + 25% on amount above ₹20,00,000
Above ₹24,00,000	30%	₹3,00,000 + 30% on amount above ₹24,00,000

Old Tax Regime Overview

The old tax regime allows various deductions and exemptions but has higher tax rates. It's beneficial for individuals who have significant deductible expenses. The regime offers:

• Deductions Available: Section 80C (up to ₹1,50,000), 80D, 80E, HRA, and others
• Higher Exemption for Seniors: ₹3,00,000 for seniors (60-79) and ₹5,00,000 for super seniors (80+)
• Section 87A Rebate: Up to ₹12,500 for income up to ₹5,00,000
• Tax Rates: 5%, 20%, and 30% across three slabs

Section 87A Rebate - Maximum Tax Relief

New Regime: Individuals with taxable income up to ₹12,00,000 can claim a rebate of up to ₹60,000 under Section 87A. This effectively means:

• No tax liability for income up to ₹12,00,000 in most cases
• Significant tax savings for middle-income earners
• Automatic application in calculations

Standard Deduction - FY 2025-26

Standard Deduction is a fixed amount deducted from gross income before calculating tax liability:

• New Regime: ₹75,000 for all salaried individuals (increased from ₹50,000)
• Old Regime: ₹50,000 for all salaried individuals

How to Choose Between Old and New Regime?

The choice between old and new regimes depends on your personal financial situation. Use this guide:

• Choose New Regime if: You have minimal deductible expenses, work as a salaried employee, want simplicity, and earn between ₹4L to ₹12L
• Choose Old Regime if: You have significant deductions (80C investments, HRA, medical insurance), are a homeowner with rent expenses
• Compare Both: Use our calculator to compute tax under both regimes and choose the one offering lower tax liability

Key Changes in Budget 2025 (FY 2025-26)

• Increased Basic Exemption: Raised from ₹3L to ₹4L in new regime
• New 25% Slab: Income bracket ₹20L-24L now taxed at 25%
• Enhanced Rebate 87A: Limit extended from ₹6L to ₹12L in new regime
• Increased Standard Deduction: From ₹50,000 to ₹75,000 for salaried employees
• Maximum Tax Savings: Potential savings up to ₹1,14,000 for eligible taxpayers

Income Tax Calculator 2026 - Features

Our advanced calculator provides:

• ✓ Real-time calculation for both old and new regimes
• ✓ Automatic application of Section 87A rebate
• ✓ Standard deduction auto-inclusion
• ✓ Education cess calculation (4%)
• ✓ Age-based exemption limits (seniors and super seniors)
• ✓ Detailed deduction support for old regime
• ✓ Side-by-side comparison
• ✓ Fully offline functionality
• ✓ Mobile-responsive design

Important Disclaimer

This calculator is designed to provide quick and approximate tax calculations for educational purposes. The calculations are based on the Income Tax Act, 1961, and amendments as of January 2026. However, every individual's tax situation is unique and may have special circumstances. We recommend consulting with a qualified Tax professional for accurate tax planning and filing returns.

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