Income Tax Calculator (FY 2025-26)
FY 2025-26 (Assessment Year 2026-27) was the year the Union Budget 2025 substantially revised the new tax regime: wider slabs, a higher ₹75,000 standard deduction, and a Section 87A rebate raised to ₹60,000, which together made income up to ₹12,75,000 (for salaried taxpayers) effectively tax-free under the new regime — a major change from the year before. This calculator uses those FY 2025-26 rules and compares them against the old regime, which was left unchanged.
How to use the income tax calculator (fy 2025-26)
- Enter your gross annual income for FY 2025-26 (1 April 2025 to 31 March 2026).
- Enter your old-regime deductions if you want the old-regime figure — the new regime does not use this field.
- Choose your age category — this only affects the old-regime exemption limit.
- Compare the two results to see which regime would have suited FY 2025-26 for you.
Formula
New regime (FY 2025-26), all ages: ₹0–4L: nil · ₹4–8L: 5% · ₹8–12L: 10% · ₹12–16L: 15% · ₹16–20L: 20% · ₹20–24L: 25% · above ₹24L: 30% — the same slabs introduced by Budget 2025 and later carried forward unchanged into FY 2026-27. A ₹75,000 standard deduction applies to salary income, and the Section 87A rebate (up to ₹60,000) zeroes out tax for taxable income up to ₹12,00,000. 4% cess is added.
Old regime, below 60: ₹0–2.5L: nil · ₹2.5–5L: 5% · ₹5–10L: 20% · above ₹10L: 30%, unchanged from earlier years, with a ₹50,000 standard deduction and an ₹5,00,000 rebate threshold. 4% cess is added.
Worked examples
Why FY 2025-26 mattered
Before this year, the new-regime rebate only covered taxable income up to ₹7,00,000. From FY 2025-26, that jumped to ₹12,00,000 (₹12,75,000 gross for salaried employees after the standard deduction) — a large one-time change, not an annual adjustment.
A ₹12 lakh salary
Gross ₹12,00,000 minus the ₹75,000 standard deduction gives ₹11,25,000 taxable — under the new ₹12L threshold introduced this year, so tax is ₹0 under the new regime.
Common mistakes to avoid
- Assuming FY 2024-25 rules still apply — the rebate threshold and standard deduction both changed materially from FY 2025-26 onward.
- Forgetting that FY 2025-26 return filing happens in the following year (AY 2026-27), which can cause confusion when checking old forms and utilities.
- Mixing up gross income and taxable income — the standard deduction and any 80C/80D/HRA deductions apply before the slabs.
Frequently asked questions
What changed in FY 2025-26 versus the year before?
Budget 2025 widened the new-regime slabs, raised the standard deduction to ₹75,000, and raised the Section 87A rebate ceiling from ₹7,00,000 to ₹12,00,000 of taxable income — making gross salary up to about ₹12.75 lakh tax-free under the new regime for the first time.
Did the old regime change in FY 2025-26?
No. The old regime’s slabs, standard deduction (₹50,000) and rebate threshold (₹5,00,000) were unchanged, which is why the gap between the two regimes widened this year.
Are FY 2025-26 and FY 2026-27 rules the same?
Yes — Union Budget 2026 made no further changes, so the FY 2025-26 slabs introduced this year continued unchanged into FY 2026-27. See our FY 2026-27 calculator if that is the year you need.
Which ITR form and deadline apply to FY 2025-26?
Income earned in FY 2025-26 is reported in the return filed in Assessment Year 2026-27, using whichever ITR form matches your income sources — check the Income Tax Department’s site for that year’s exact deadline.
Sources: Income Tax Department of India — official tax rates
Reviewed September 29, 2026 by the CalcSolver editorial team. Found a mistake? Tell us; see our editorial policy.