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Income Tax Calculator 2025-26 India — Old vs New Regime

Calculate your income tax for FY 2025-26 and compare the old tax regime vs the new tax regime side by side. Find out which regime saves you more tax. 100% free, no sign-up.

Max Rs. 1,50,000 (PPF, ELSS, EPF, LIC, etc.)

80D, 80CCD(1B), home loan interest, etc.

Free Income Tax Calculator 2025-26 — Old vs New Regime Comparison

OptiDrop's Income Tax Calculator helps you calculate your tax liability for FY 2025-26 under both the old and new tax regimes. The new tax regime, which is now the default regime, offers lower tax rates but removes most deductions and exemptions. The old regime allows you to claim deductions like Section 80C, HRA, and others, which can significantly reduce your taxable income.

How Does the Tax Calculator Work?

Enter your gross annual salary along with any applicable deductions such as HRA exemption and Section 80C investments. The calculator applies the respective tax slabs for both regimes and shows you a side-by-side comparison. It also factors in the Section 87A rebate available under the new regime for taxable income up to Rs. 12 lakh. A clear recommendation tells you which regime saves you more tax.

Understanding Old vs New Tax Regime

The old tax regime allows various deductions and exemptions (80C, 80D, HRA, home loan interest, etc.) but has higher tax rates. The new tax regime has lower rates and a higher standard deduction of Rs. 75,000 but does not allow most deductions. For FY 2025-26, the new regime is the default. Salaried employees can choose the regime that benefits them the most. All calculations happen in your browser with no data uploaded.

Frequently Asked Questions

The new tax regime for FY 2025-26 offers lower tax rates but removes most deductions and exemptions. The slabs are: 0% up to Rs. 4 lakh, 5% for Rs. 4-8 lakh, 10% for Rs. 8-12 lakh, 15% for Rs. 12-16 lakh, 20% for Rs. 16-20 lakh, 25% for Rs. 20-24 lakh, and 30% above Rs. 24 lakh. A standard deduction of Rs. 75,000 is available. Section 87A rebate provides full tax rebate for taxable income up to Rs. 12 lakh.
Standard deduction is a flat deduction available to salaried individuals from their gross salary. For FY 2025-26, the standard deduction is Rs. 50,000 under the old tax regime and Rs. 75,000 under the new tax regime. It is automatically applied and does not require any investment or proof. It reduces your taxable income before tax is calculated.
The better regime depends on your deductions. If you have significant deductions like HRA, home loan interest, and Section 80C investments (totaling more than Rs. 4-5 lakh), the old regime may save more tax. If you have few or no deductions, the new regime with lower tax rates and higher standard deduction (Rs. 75,000) is usually better. Use this calculator to compare both and choose the one that gives you lower tax liability.
Common ways to save tax in India include: investing up to Rs. 1.5 lakh under Section 80C (PPF, ELSS, EPF, life insurance), claiming HRA exemption for rented accommodation, claiming home loan interest deduction under Section 24(b) up to Rs. 2 lakh, investing in NPS under Section 80CCD(1B) for additional Rs. 50,000 deduction, and claiming health insurance premium deduction under Section 80D up to Rs. 25,000 (Rs. 50,000 for senior citizens).

Last updated: June 2026