New Regime Tax Slabs (FY 2024-25)
| Income Range | Tax Rate |
|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹7,00,000 | 5% |
| ₹7,00,001 – ₹10,00,000 | 10% |
| ₹10,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Standard deduction of ₹75,000 is available under New Regime from FY 2024-25. Rebate u/s 87A: No tax if taxable income ≤ ₹7,00,000.
New Tax Regime vs Old Tax Regime — Which is Better?
Choosing between the two tax regimes in FY 2026-27 depends on your total income and the tax-saving investments you make. Since the New Tax Regime is now the default, it is essential to understand if opting for the Old Regime would actually save you money.
1. The New Tax Regime (Default)
The New Tax Regime is designed for simplicity. It offers lower tax rates but removes most popular exemptions (like 80C and HRA).
- Zero Tax Limit: Resident individuals with taxable income up to ₹12,00,000 pay zero tax due to the enhanced Section 87A rebate (max rebate of ₹60,000).
- Standard Deduction: Salaried individuals receive a deduction of ₹75,000, meaning you can earn up to ₹12,75,000 without paying any tax.
- Best For: Taxpayers who prefer not to lock their money in 5-year investments and those with no home loan interest.
2. The Old Tax Regime
The Old Tax Regime is still beneficial if you have significant tax-saving deductions that "pull" your taxable income down to lower brackets.
- Standard Deduction: Fixed at ₹50,000.
- Key Deductions: You can claim Section 80C (up to ₹1.5L), HRA (Rent), Section 24b (Home loan interest up to ₹2L), and 80D (Health Insurance).
- Best For: Homeowners with high interest payments and individuals with total deductions exceeding ₹4.25 Lakhs.
Income Tax Slabs (FY 2026-27)
| Income Slab |
New Regime Rate |
Old Regime Rate |
| Up to ₹4,00,000 |
Nil |
Nil (up to ₹2.5L) |
| ₹4,00,001 – ₹8,00,000 |
5% |
5% to 20% |
| ₹8,00,001 – ₹12,00,000 |
10% |
20% |
| ₹12,00,001 – ₹16,00,000 |
15% |
30% |
| Above ₹24,00,000 |
30% |
30% |
Why Use Our Income Tax Calculator?
Our tool is updated with the latest 2026-27 Finance Act changes. It automatically calculates:
- Section 87A Rebate: Ensures you see the "Zero Tax" benefit if eligible.
- Surcharge & Cess: Accurately applies the 4% Health & Education Cess.
- Comparison Mode: Instantly shows you which regime saves you more money based on your specific 80C and HRA inputs.
Frequently Asked Questions
What is the standard deduction for salaried employees?
For FY 2024-25, the standard deduction is ₹75,000 under the New Regime and ₹50,000 under the Old Regime. This is automatically deducted from your salary income before computing tax.
What is Section 87A rebate?
Under Section 87A, individuals with net taxable income up to ₹5 lakh (Old Regime) or ₹7 lakh (New Regime) get a full tax rebate. This means zero income tax is payable even if your computed tax is positive.
What is the health and education cess?
A 4% Health and Education Cess is levied on the total income tax amount (including surcharge, if applicable). Our calculator automatically includes this in the total tax displayed.
What is surcharge on income tax?
Surcharge is an additional tax on high incomes: 10% for income between ₹50L–₹1Cr, 15% for ₹1Cr–₹2Cr, 25% for ₹2Cr–₹5Cr, and 37% above ₹5Cr (Old Regime). Under New Regime, maximum surcharge is 25%. Our calculator includes surcharge for applicable incomes.