How the New Regime Works

This income tax calculator applies the FY 2025-26 slab structure — 0% up to ₹4L, then 5/10/15/20/25/30% — with the ₹75,000 standard deduction and the ₹12 lakh 87A rebate. The old regime is modeled with its classic slabs, ₹50,000 standard deduction, and 80C deductions up to ₹1.5L.

Effective vs Marginal Rate

Marginal rate is the tax on your next rupee; effective rate is total tax divided by income. At ₹15L in the new regime the marginal rate is 20% but the effective rate is far lower because the first ₹12L are taxed lightly or not at all.

Choosing a Regime

Run both numbers with your real deductions. The new regime wins when deductions stay below roughly ₹3L; heavy investors and renters may still do better in the old regime. Either way, the 4% cess applies on top.