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Compare your income tax under the New and Old regimes for FY 2025-26, including the standard deduction and Section 87A rebate.
Formula
New regime FY25-26 slabs: 0 up to Rs 4L; 5% Rs 4-8L; 10% Rs 8-12L; 15% Rs 12-16L; 20% Rs 16-20L; 25% Rs 20-24L; 30% above. Standard deduction Rs 75,000. Full rebate under 87A up to Rs 12L taxable. Old regime: 0 up to Rs 2.5L; 5% Rs 2.5-5L; 20% Rs 5-10L; 30% above; standard deduction Rs 50,000; rebate up to Rs 5L taxable. 4% cess on tax in both.
Worked example
Salary Rs 12,00,000 with Rs 2,50,000 of old-regime deductions: New regime tax after standard deduction and 87A ≈ Rs 71,500; Old regime ≈ Rs 66,300. The Old regime wins here by about Rs 5,000 because of the deductions.
Quick reference
| Salary | New regime tax | Old (Rs 2L ded.) |
|---|---|---|
| Rs 7,00,000 | Rs 0 | Rs 33,800 |
| Rs 12,00,000 | Rs 71,500 | Rs 96,200 |
| Rs 20,00,000 | Rs 2,54,800 | Rs 3,04,200 |
| Rs 50,00,000 | Rs 12,20,000 | Rs 12,66,000 |
Indicative, FY 2025-26, incl. 4% cess.
Frequently asked questions
Which tax regime is better for me?
The New regime has lower slab rates but almost no deductions; the Old regime has higher rates but lets you claim 80C, 80D, HRA, home-loan interest and more. As a rule of thumb, if your total deductions exceed roughly Rs 3.75-4 lakh the Old regime usually wins; below that the New regime does. Run your own numbers above.
What is the Section 87A rebate?
A rebate that makes tax zero for lower incomes. Under the New regime for FY 2025-26 it applies up to Rs 12 lakh of taxable income; under the Old regime up to Rs 5 lakh.
Is the standard deduction available in the New regime?
Yes. Salaried taxpayers get a Rs 75,000 standard deduction under the New regime and Rs 50,000 under the Old regime for FY 2025-26.