Income Tax Calculator
FY 2025-26 / AY 2026-27 (same slabs apply for FY 2026-27). Budget 2025 new regime — zero tax up to ₹12 lakh via ₹60,000 rebate under Section 87A, with marginal relief just above ₹12L.
Based on your inputs. Budget 2025 gives zero tax up to ₹12L (₹12.75L for salaried) under the new regime.
New Regime
BestOld Regime
New Regime slabs — Budget 2025
Key benefits (New regime)
- Section 87A rebate up to ₹60,000 — zero tax on taxable income up to ₹12L.
- Standard deduction of ₹75,000 for salaried → tax-free up to ₹12.75L.
- Marginal relief avoids a cliff just above ₹12L.
- 4% Health & Education Cess; surcharge applies above ₹50L (capped at 25%).
Income Tax FAQs — FY 2025-26 & FY 2026-27
Is income up to ₹12 lakh tax-free in FY 2025-26?
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Yes. Under the new tax regime (Budget 2025, effective FY 2025-26 and FY 2026-27), taxable income up to ₹12 lakh attracts zero tax via the enhanced Section 87A rebate of ₹60,000. For salaried taxpayers, the ₹75,000 standard deduction extends this to ₹12.75 lakh gross.
What is marginal relief above ₹12 lakh?
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Marginal relief caps your tax at the amount by which taxable income exceeds ₹12 lakh. For example, at ₹12.10L taxable income, tax is ₹10,000 instead of the slab-calculated ₹61,500.
Old or new regime — which should I choose?
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Choose new if you claim few deductions. Choose old only if your total deductions (80C, 80D, HRA, home loan interest, NPS) exceed roughly ₹4 lakh and offset the new regime's lower rates. Salaried people with moderate rent and basic 80C usually prefer new.
Is standard deduction available in both regimes?
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Yes. Salaried taxpayers and pensioners get ₹75,000 under the new regime and ₹50,000 under the old regime.
Does the calculator include surcharge and cess?
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Yes. It applies surcharge (10% above ₹50L, 15% above ₹1Cr, 25% above ₹2Cr; capped at 25% in the new regime) and the 4% Health and Education Cess on the final tax.
Is the calculator valid for FY 2026-27?
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Yes. Budget 2025 slabs apply for both FY 2025-26 and FY 2026-27 since no subsequent Budget has changed them.
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