Income Tax Calculator — Old vs New Regime (FY 2025-26 India)
Calculate your income tax under old and new regime for FY 2025-26. Compare tax liability, see which regime saves more, and plan your deductions.
Every salaried Indian faces the same annual question: old regime or new regime? The answer depends entirely on your deductions. The CalcHub Income Tax Calculator computes your tax under both regimes so you can compare and choose the one that saves more.
Tax Slabs — FY 2025-26
New Regime (Default)
| Taxable Income | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹6,00,000 | 5% |
| ₹6,00,001 – ₹9,00,000 | 10% |
| ₹9,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Old Regime
| Taxable Income | Tax 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% |
Quick Tax Comparison by Income
| Gross Income | New Regime Tax | Old Regime Tax (Max Deductions ~₹4L) | Better Option |
|---|---|---|---|
| ₹7,00,000 | ₹0 (rebate) | ₹0 | Either |
| ₹10,00,000 | ₹52,500 | ₹52,500 | Equal (at ~₹2L deductions) |
| ₹12,00,000 | ₹85,800 | ₹67,600 | Old (if deductions > ₹2.5L) |
| ₹15,00,000 | ₹1,35,000 | ₹1,02,600 | Old (if deductions > ₹3.5L) |
| ₹20,00,000 | ₹2,85,000 | ₹2,18,400 | Old (if deductions > ₹4L) |
| ₹25,00,000 | ₹4,35,000 | ₹3,68,400 | Old (if deductions > ₹4.5L) |
Deductions Available in Old Regime
| Section | Deduction | Max Limit |
|---|---|---|
| 80C | EPF, PPF, ELSS, life insurance, tuition fees | ₹1,50,000 |
| 80CCD(1B) | NPS additional contribution | ₹50,000 |
| 80D | Health insurance premium | ₹25,000 (₹50K for senior parents) |
| 24(b) | Home loan interest | ₹2,00,000 |
| 10(13A) | HRA exemption | Varies by rent and salary |
| 80E | Education loan interest | No limit |
| 80G | Donations | 50% or 100% (varies) |
| 80TTA | Savings account interest | ₹10,000 |
How to Use the Calculator
- Open the CalcHub Income Tax Calculator
- Enter your gross annual income
- Enter deductions and exemptions (for old regime comparison)
- See tax liability under both regimes side by side
- Choose the regime that results in lower tax
Surcharge and Cess
Health and Education Cess: 4% on total tax (both regimes). Surcharge (both regimes):| Income Above | Surcharge Rate |
|---|---|
| ₹50 lakh | 10% |
| ₹1 crore | 15% |
| ₹2 crore | 25% |
| ₹5 crore | 37% (old) / 25% (new) |
The Decision Framework
Choose New Regime if:- Your total deductions (80C + 80D + HRA + home loan) are less than ₹2.5–3 lakh
- You don't have a home loan
- You live in your own house (no HRA claim)
- You prefer simplicity over tax optimization
- You claim HRA exemption (especially in metros with high rent)
- You have a home loan with interest > ₹1.5 lakh/year
- You invest in NPS (extra ₹50K deduction under 80CCD(1B))
- Your total deductions comfortably exceed ₹3.5–4 lakh
Common Tax-Saving Mistakes
Investing only in March. Tax-saving investments should be planned in April, not panic-bought in March. ELSS through monthly SIP is better than a lump sum in the last week. Ignoring employer NPS contribution. Under Section 80CCD(2), employer's NPS contribution (up to 10% of basic + DA) is deductible even in the new regime. This is often overlooked. Not claiming all eligible deductions. Many employees don't claim: section 80D (even for parents' health insurance), 80TTA (savings bank interest up to ₹10K), and 80E (education loan interest — no upper limit). Choosing a regime without calculating both. Don't assume new regime is better because it's "simpler." Run the numbers. Use the calculator. The difference can be ₹30,000–₹1,00,000+ for incomes above ₹12 LPA.Can I switch regimes every year?
Salaried employees: yes, you can switch every year by informing your employer. Self-employed/business income: you can switch to new regime once; switching back is allowed once as well (with restrictions).
Is my bonus/variable pay taxed differently?
No. All components of salary — base, bonus, variable, commission — are taxed at your applicable slab rate. Employers may deduct TDS at a higher rate on bonuses to avoid under-deduction.
What if my income is exactly ₹7 lakh under new regime?
You pay zero tax due to the Section 87A rebate. But if your income is ₹7,00,001, you pay tax on the full amount above ₹3 lakh (with marginal relief provisions). Plan your taxable income carefully around this threshold.
Related Calculators
- HRA Calculator — HRA exemption calculation
- Gratuity Calculator — retirement payout
- Salary Calculator — CTC to in-hand breakdown
- EPF Calculator — provident fund with 80C benefit