New Tax Regime Calculator for FY 2025-26

Savetaxs New Tax Regime Calculator

The Savetaxs New Tax Regime Calculator helps individuals estimate their income tax liability for FY 2025-26 (AY 2026-27) under the latest Budget tax rules. The calculator computes your total tax liability by considering your gross income, standard deduction, and eligible employer NPS contributions.

The Savetaxs Income Tax Calculator New Regime reflects the updated tax slabs, enhanced rebate provisions, and standard deduction announced in the Finance Act, 2025. It supports both Resident and NRI taxpayers, making it easier to calculate and compare your tax liability under the new tax regime.

Important Notes to Consider While Using the Tool

• For estimation purposes, the calculator assumes the basic salary as 50% of the Cost to Company (CTC).
• A standard deduction of ₹75,000 is available for eligible salaried individuals under the new tax regime.
• Under Section 80CCD(2), the employer's NPS contribution is considered up to the applicable limits prescribed under the Income Tax Act.
• For eligible taxpayers, a tax rebate of up to ₹60,000 may be available as per the latest provisions under Budget.
• A 4% Health and Education Cess is automatically added to the total tax liability wherever applicable.
• The due date for filing the Income Tax Return (ITR) is generally 31 July 2026, unless extended by the Income Tax Department.

How Does the Savetaxs New Tax Regime Calculator Work?

You only need to enter a few details to calculate your income tax liability under the new tax regime.

• Financial Year: Choose the relevant financial year for which you want to calculate your income tax.
• Gross Annual Income: Enter your total annual taxable income for the selected financial year.
• Monthly Employer NPS 80CCD(2) Contribution (Optional): Enter your employer's contribution towards the National Pension System (NPS), if applicable.

Once the required information is entered, the calculator instantly computes your tax liability according to the latest tax slabs.

Key Features of the Savetaxs New Tax Regime Calculator

The following are the key features of the Savetaxs Income Tax Calculator New Regime:

• Automatic estimation of basic salary (50% of CTC).
• Monthly and annual tax breakup.
• Slab-wise income tax calculation.
• Automatic Health and Education Cess calculation.
• Enhanced rebate consideration as per Budget.
• Employer NPS contribution validation.
• Instant tax summary with detailed tax breakdown.
• Compare tax liability under the Old and New Tax Regimes.

What is the Difference Between the Old and New Tax Regimes?

The Old Tax Regime follows the traditional tax slab structure and allows taxpayers to claim various exemptions and deductions, whereas the New Tax Regime offers lower tax rates with fewer deductions and exemptions.

Choosing the right regime depends on your income, eligible deductions, and tax-saving investments. Comparing both regimes helps determine which option results in a lower tax liability.

New Tax Regime

The New Tax Regime is designed for taxpayers who prefer a simplified tax structure without claiming multiple deductions or exemptions. Although many deductions available under the old regime are not permitted, it offers lower tax rates across broader income slabs.

One of the biggest advantages of the new regime is the higher rebate threshold. Eligible individuals with taxable income up to ₹12 lakh can significantly reduce or eliminate their tax liability, subject to the applicable provisions under the Income Tax Act.

Income Tax Slabs for FY 2025-26 (AY 2026-27) Under the New Tax Regime

Annual Income (INR)	Tax Rate
₹0 - ₹4 lakh	Nil
₹4 lakh - ₹8 lakh	5%
₹8 lakh - ₹12 lakh	10%
₹12 lakh - ₹16 lakh	15%
₹16 lakh - ₹20 lakh	20%
₹20 lakh - ₹24 lakh	25%
Above ₹24 lakh	30%

Note: Above tax rates do not include surcharge and the applicable 4% Health and Education Cess.

Under the new regime, the increase in the rebate threshold has significantly reduced the tax burden for eligible taxpayers. Additionally, a standard deduction of ₹75,000 is available for eligible salaried individuals, allowing many taxpayers to further reduce their taxable income.

You can also use the Savetaxs New Tax Regime Calculator to instantly estimate your tax liability and compare your tax savings.

Old Tax Regime

The Old Tax Regime allows taxpayers to claim several exemptions and deductions, including investments under Section 80C, health insurance premiums under Section 80D, home loan benefits, HRA, LTA, and other eligible deductions.

Although the old regime offers greater flexibility through tax-saving investments, the higher tax rates may make it less beneficial for individuals with limited deductions.

Income Tax Slabs 2025 Under the Old Tax Regime

Annual Income (INR)	Tax Rate
Up to ₹2.5 lakh	Nil
₹2.5 lakh - ₹5 lakh	5%
₹5 lakh - ₹10 lakh	20%
Above ₹10 lakh	30%

You can calculate your tax liability under the old regime by using the Savetaxs Income Tax Calculator and compare it with the new regime to identify the better option.

New Tax Regime Applicability for NRIs

For FY 2025-26 (AY 2026-27), Non-Resident Indians (NRIs) can opt for the New Tax Regime, subject to the applicable provisions of the Income Tax Act.

Eligibility Rules

• Any NRI having Indian income can opt for the new regime by default or via Form 10-IEA (if switching back to the old). Indian income includes salary, rent, capital gains, and interest on NRO accounts. 
• Same slab rates of 0% up to ₹4 lakh, and up to 30% above ₹24 lakh apply. Along with that, a standard deduction of ₹75,000 applies on salary and the employer NPS 80CCD(2) contribution (14%). 
• The new regime applies automatically as the default choice unless you file Form 10-IEA for the old regime. This is ideal for NRIs as they often skip deductions like 80C or HRA. 

NRI Benefits 

The New Tax Regime helps taxpayers with low and middle incomes reduce their tax liability. For example, an individual with an annual taxable income of ₹12 lakh can save up to ₹83K or higher as compared to the old tax regime. However, several deductions like home loan interest or Section 80C are not available. Choose the old regime only if these deductions apply. 

NRIs can opt for the New Tax Regime and benefit from the applicable tax slab rates and eligible deductions, such as the employer's NPS contribution under Section 80CCD(2), wherever applicable. They should compare both tax regimes before filing their Income Tax Return to determine the most beneficial option.

Important Points to Consider

Before using the Savetaxs New Tax Regime Calculator, keep the following points in mind:

• The calculator is primarily designed for salaried individuals opting for the new tax regime.
• All calculations include the applicable 4% Health and Education Cess.
• Eligible rebate benefits are automatically considered wherever applicable.
• Employer NPS contributions are calculated according to the applicable limits under Section 80CCD(2).
• The calculator considers the latest standard deduction available under the new regime.
• Tax slabs and rebate provisions are updated according to Finance Act, 2025.

Why Use the Savetaxs New Tax Regime Calculator?

Savetaxs New Tax Regime Calculator helps you estimate your income tax liability in seconds, compare the Old and New Tax Regimes, and understand how much tax you need to pay before filing your Income Tax Return.

Whether you are a Resident or NRI, the calculator provides a quick and reliable estimate based on the latest Budget tax rules, enabling you to make informed financial decisions and choose the most tax-efficient regime.