Compare Old vs New regime side-by-side. Find which saves you more tax for FY 2025-26 & 2026-27.
The Union Budget 2025 introduced revised tax slabs under the new tax regime, making it more attractive for most taxpayers. Here are the current slabs:
| Income Slab | Tax 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. Section 87A rebate: No tax if taxable income is up to ₹12 lakh (effectively ₹12.75 lakh gross income).
| Income Slab | 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% |
Standard Deduction: ₹50,000. Section 87A rebate: Up to ₹12,500 if taxable income is up to ₹5 lakh. Additional deductions allowed: 80C, 80D, HRA, home loan interest, NPS, and more.
The new regime is better for most taxpayers, especially if your deductions are less than ₹3-4 lakh. The new regime offers lower slab rates and a higher standard deduction of ₹75,000.
The old regime may save more if you have significant deductions - HRA exemption of ₹2+ lakh, full 80C of ₹1.5 lakh, 80D, home loan interest, and NPS. Use the calculator above to compare both regimes for your exact situation.
The new tax regime for FY 2025-26 has revised slabs: no tax up to Rs 4 lakh, 5% for 4-8 lakh, 10% for 8-12 lakh, 15% for 12-16 lakh, 20% for 16-20 lakh, 25% for 20-24 lakh, and 30% above 24 lakh. Standard deduction is Rs 75,000. With the Section 87A rebate, there is effectively no tax up to Rs 12.75 lakh gross income.
The new regime is better for most taxpayers, especially those with fewer deductions. The old regime can be better if you have significant deductions like HRA (Rs 2+ lakh), full 80C (Rs 1.5 lakh), 80D, home loan interest, and NPS. Use this calculator to compare both regimes for your exact income and deductions.
Under the new regime, if your taxable income (after Rs 75,000 standard deduction) is up to Rs 12 lakh, you get a full rebate making your tax effectively zero. This means no tax up to Rs 12.75 lakh gross income. Under the old regime, rebate is available up to Rs 5 lakh taxable income (max Rs 12,500).
The old regime allows Section 80C (up to Rs 1.5 lakh for PPF, ELSS, LIC, EPF), Section 80D (Rs 25,000-1 lakh for health insurance), HRA exemption, home loan interest under Section 24b (up to Rs 2 lakh), NPS under 80CCD(1B) (Rs 50,000), and Rs 50,000 standard deduction.
Income tax is calculated by first determining your gross income, then subtracting applicable deductions to get taxable income. Tax is computed slab-wise on this taxable income. A 4% Health & Education Cess is added to the tax amount. Section 87A rebate may apply if taxable income is within the rebate limit.
The standard deduction for FY 2025-26 is Rs 75,000 under the new regime (increased from Rs 50,000 in Budget 2024) and Rs 50,000 under the old regime. This is a flat deduction from salary income with no documentation required.
Health and Education Cess is a 4% surcharge applied on the total income tax amount (after rebate). It is levied to fund health and education initiatives. For example, if your tax is Rs 1,00,000, the cess would be Rs 4,000, making total tax Rs 1,04,000.