The Indian government offers two tax regimes: the New Tax Regime (default since FY 2023-24) and the Old Tax Regime. Choosing the right one can save you ₹20,000 to ₹1,50,000+ in taxes depending on your salary and deductions.
New Regime Tax Slabs FY 2025-26
| Income Slab | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹7,00,000 | 5% |
| ₹7,00,001 – ₹10,00,000 | 10% |
| ₹10,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Old Regime Tax Slabs FY 2025-26
| Income Slab | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
When to Choose New Regime
- You have few or no deductions (no HRA, 80C, 80D, etc.)
- Your salary is below ₹7,50,000 — you pay zero tax under new regime (with standard deduction)
- You want simplicity without tracking investment proofs
When to Choose Old Regime
- You have significant deductions: HRA + 80C (₹1.5L) + 80D (₹25K-₹50K) + NPS (₹50K)
- Your total deductions exceed ₹3.75 lakh — old regime usually saves more
- You have a home loan with interest deduction (Section 24b)
Related Calculators
- GST Calculator — Calculate goods and services tax
- Salary Calculator — Calculate in-hand salary from CTC
- EMI Calculator — Plan home/car loan EMIs
- Percentage Calculator — Calculate tax percentages