Qubera Tax

Income Tax Calculator (FY 2025-26 / AY 2026-27)

For FY 2025-26 under the new tax regime, a salaried person pays zero income tax up to ₹12,75,000 of salary (₹12,00,000 taxable income after the ₹75,000 standard deduction), because the section 87A rebate makes tax nil up to ₹12 lakh. Above that, tax is charged in slabs from 5% to 30%, plus 4% health and education cess. This calculator computes your tax under both the new and old regimes and tells you which one is cheaper.

Updated July 2026. Figures for FY 2025-26 (AY 2026-27).

How it is calculated

New regime slabs for FY 2025-26

Tax is charged on your taxable income (income minus the ₹75,000 standard deduction) in these bands:

The ₹12 lakh rebate (section 87A)

If your taxable income is ₹12,00,000 or less under the new regime, the section 87A rebate reduces your tax to zero (rebate up to ₹60,000). Just above ₹12 lakh, marginal relief ensures your total tax never exceeds the income you earned over ₹12 lakh. The rebate does not apply to income taxed at special rates, such as capital gains.

Old regime

The old regime keeps the ₹2.5 lakh basic exemption (₹3 lakh for those 60 to 79, ₹5 lakh for 80+) and slabs of 5%, 20% and 30%, but lets you claim deductions like 80C (up to ₹1.5 lakh), 80D, HRA and home loan interest. The 87A rebate makes tax nil up to ₹5 lakh taxable income.

Surcharge and cess

A surcharge applies above ₹50 lakh income (10% to 25% in the new regime, up to 37% in the old regime), and 4% health and education cess is added on top of tax plus surcharge.

Worked example. On a ₹15,00,000 salary in FY 2025-26, taxable income is ₹14,25,000 after standard deduction, and new-regime tax is about ₹93,600 including cess.

Frequently asked questions

Is income up to ₹12 lakh tax free in FY 2025-26?

Yes, under the new regime the section 87A rebate makes tax nil for taxable income up to ₹12,00,000. For a salaried person the effective tax-free salary is ₹12,75,000 after the ₹75,000 standard deduction. This applies to normal income, not to capital gains.

What is the standard deduction for FY 2025-26?

₹75,000 under the new regime and ₹50,000 under the old regime, available on salary and pension income.

Which regime should I choose, new or old?

The new regime is usually cheaper unless you claim large deductions (80C, 80D, HRA, home loan interest) that together bring your taxable income down substantially. This calculator computes both and shows which one saves you more.

Does the new regime allow 80C deductions?

No. The new regime does not allow most deductions such as 80C, 80D or HRA. It offers lower slab rates and a higher rebate instead. Employer NPS contribution under 80CCD(2) is one of the few still allowed.

What is AY 2026-27?

Assessment Year 2026-27 is the year in which you file and are assessed for income earned in Financial Year 2025-26 (1 April 2025 to 31 March 2026).

Related calculators

Take-Home Salary Calculator · HRA Exemption Calculator · Capital Gains Tax Calculator · Advance Tax Calculator

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