What Is the New Tax Regime?
the new tax regime is set out in section 115bac of the income-tax act, 1961 (and section 202 of the new income-tax act, 2025). it offers wider, lower slabs but removes most deductions and exemptions. it is now the default regime, and tends to suit taxpayers without elaborate tax-saving investments.
New Regime Slab Rates — FY 2025-26 (ay 2026-27)
| income (₹) | tax rate |
|---|
| up to 4 lakh | nil |
| 4–8 lakh | 5% |
| 8–12 lakh | 10% |
| 12–16 lakh | 15% |
| 16–20 lakh | 20% |
| 20–24 lakh | 25% |
| above 24 lakh | 30% |
Zero Tax on Income Up to ₹12 Lakh — How It Works
under the new regime, the section 87a rebate makes tax nil for normal-slab income up to ₹12 lakh — and ₹12.75 lakh for salaried taxpayers after the ₹75,000 standard deduction. the rebate does not apply to special-rate income like capital gains or crypto. a worked example:
| particulars | amount (₹) |
|---|
| gross salary | 12,75,000 |
| less: standard deduction | 75,000 |
| taxable salary | 12,00,000 |
| tax (0–4L nil; 4–8L = 20,000; 8–12L = 40,000) | 60,000 |
| less: §87a rebate | 60,000 |
| net tax payable | nil |
Old Regime Slab Rates — FY 2025-26
the old regime keeps its long-standing slabs and a wide range of deductions.
| income (₹) | tax rate |
|---|
| up to 2.5 lakh | nil |
| 2.5–5 lakh | 5% |
| 5–10 lakh | 20% |
| above 10 lakh | 30% |
Old Regime — Senior & Super-senior Citizens
resident seniors (60–80) and super-seniors (80+) get a higher basic exemption under the old regime.
| age | basic exemption |
|---|
| below 60 | ₹2.5 lakh |
| 60–80 (senior) | ₹3 lakh |
| 80+ (super senior) | ₹5 lakh |
Deductions: Old vs New Regime
| benefit | old regime | new regime |
|---|
| §87a rebate | ₹12,500 (up to ₹5L) | ₹60,000 (up to ₹12L) |
| standard deduction | ₹50,000 | ₹75,000 |
| section 80c | allowed | not allowed |
| hra exemption | allowed | not allowed |
| home-loan interest (self-occupied) | allowed | not allowed |
| nps | fully allowed | employer contribution only |
| section 80d | allowed | not allowed |
How Much Tax Will You Pay? Salary-wise Comparison
tax on taxable income (after the standard deduction), comparing both regimes with no other deductions claimed:
| taxable income | new regime | old regime | you save |
|---|
| ₹8 lakh | nil (§87a) | ₹75,400 | ₹75,400 |
| ₹10 lakh | nil (§87a) | ₹1,17,000 | ₹1,17,000 |
| ₹12 lakh | nil (§87a) | ₹1,79,400 | ₹1,79,400 |
| ₹13 lakh | ₹78,000 | ₹2,10,600 | ₹1,32,600 |
| ₹15 lakh | ₹1,09,200 | ₹2,73,000 | ₹1,63,800 |
| ₹20 lakh | ₹2,08,000 | ₹4,29,000 | ₹2,21,000 |
| ₹25 lakh | ₹3,43,200 | ₹5,85,000 | ₹2,41,800 |
| ₹30 lakh | ₹4,99,200 | ₹7,41,000 | ₹2,41,800 |
Surcharge & Cess
a 4% health & education cess applies to all tax. above ₹50 lakh income, a surcharge applies on the tax:
| income | old regime | new regime |
|---|
| ₹50 lakh – 1 crore | 5% | 5% |
| ₹1 – 2 crore | 15% | 15% |
| ₹2 – 5 crore | 25% | 25% |
| above ₹5 crore | 37% | 25% |
How to Use This Calculator
- pick your financial year and age group;
- enter your gross salary and any exempt allowances (hra/lta);
- add other income — interest, rent and digital-asset gains;
- enter your old-regime deductions (80c, 80d, nps and more);
- the calculator compares both regimes and shows a full breakdown — the lower total wins.
