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  5. Income-tax calculator 2025-26 for salaried: Tax on ₹12.75 lakh to ₹1 crore salary in new regime with examples

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Income-tax calculator 2025-26 for salaried: Tax on ₹12.75 lakh to ₹1 crore salary in new regime with examples

rajeev kumar
By Rajeev Kumar

5 min read | Updated on February 02, 2025, 11:11 IST

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SUMMARY

Salary income-tax calculator for FY 2025-26: Take a look at tax liability for salary income of ₹12.75 lakh to ₹1 crore as per the revised tax slabs of new regime announced in Union Budget 2025-26.

tax benefit calculator 2025-26 for salaried

Know how the new slabs under the new tax regime will benefit salaried taxpayers | Image source: Shutterstock

Income-tax calculator for salaried FY 2025-26: Finance Minister Nirmala Sitharaman delighted salaried taxpayers on February 1, 2025, by announcing revised tax slabs, rates, and rebate under the new tax regime in Budget 2025.
"Slabs and rates are being changed across the board to benefit all taxpayers. The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment," the FM said in her record 8th budget speech.
As per the finance minister's announcement, the revised rebate and slabs in the new regime will make salary income up to ₹12.75 lakh tax-free.
Earlier, there was a tax rebate of ₹25,000 for income between ₹3 lakh to ₹7 lakh under the new regime. The finance minister has proposed to revise the rebate to ₹60,000 for income between ₹4 lakh to ₹12 lakh. She has also proposed that there will be nil tax on income below ₹4 lakh while incomes above ₹4 lakh will be taxed at different rates. (See new slabs and rates here)
You can also use our revised and updated income-tax calculator below to check your tax liability for FY 2025-26.
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Salaried employees also get a standard deduction of ₹75,000. Thus the new rebate and standard deduction announced by the finance minister make salary income up to ₹12.75 lakh tax-free.

The changes announced by the finance minister will apply in the Financial year (FY) 2025-26 or Assessment Year (AY) 2026-27.

How will revised slabs and rebate benefit salaried employees?

CA Dr Suresh Surana's post-budget calculations show the budget announcements are set to provide tax benefits to almost all salaried employees opting for the new tax regime.

For instance, the proposed tax rates in the new regime will enable 26.35% tax savings for an employee earning ₹25 lakh salary income compared to the existing new regime rates. Similarly, an employee earning a salary of ₹18 lakh will make 30.12% tax savings due to the proposed rates in the new regime.

The following illustrations based on Dr Surana's calculation show the percentage tax-savings salaried employees can make due to the proposed slabs in the new regime compared to the previous slab and rates at different income levels.

Please note the illustrations are for reference purposes only. Salary income, standard deduction, health and education cess and surcharge have been considered for calculation. However, other forms of income and deductions, have not been considered for calculation.

Tax calculation: Benefit on ₹12.75 lakh salary due to proposed slabs for FY 2025-26

ParticularsCalculation
Salary income₹12,75,000
Less: Standard deduction₹75000
Net taxable income₹12,00,000
Tax liability (existing) – FY 2024-25₹83,200
Tax liability (proposed) – FY 2025-26Nil*
Benefit in tax liability₹83,200
% of tax savings100%

Tax calculation: Benefit on ₹18 lakh salary due to proposed slabs for FY 2025-26

ParticularsCalculation
Salary income₹18,00,000
Less: Standard deduction₹75,000
Net taxable income₹17,25,000
Tax liability (existing) – FY 2024-25₹2,15,800
Tax liability (proposed) – FY 2025-26₹1,50,800
Benefit in tax liability₹65,000
% of tax savings30.12%

Tax calculation: Benefit on ₹25 lakh salary due to proposed slabs for FY 2025-26

ParticularsCalculation
Salary income₹25,00,000
Less: Standard deduction₹75000
Net taxable income₹24,25,000
Tax liability (existing) – FY 2024-25₹4,34,200
Tax liability (proposed) – FY 2025-26₹3,19,800
Benefit in tax liability₹1,14,400
% of tax savings26.35%

Tax calculation: Benefit on ₹50 lakh salary due to proposed slabs for FY 2025-26

ParticularsCalculation
Salary income₹50,00,000
Less: Standard deduction₹75,000
Net taxable income₹49,25,000
Tax liability (existing) – FY 2024-25₹12,14,200
Tax liability (proposed) – FY 2025-26₹10,99,800
Benefit in tax liability₹1,14,400
% of tax savings9.42%

Tax calculation: Benefit on ₹1 crore salary due to proposed slabs for FY 2025-26

ParticularsCalculation
Salary income₹1,00,00,000
Less: Standard deduction₹75,000
Net taxable income₹99,25,000
Tax liability (existing) – FY 2024-25₹30,51,620
Tax liability (proposed) – FY 2025-26₹29,25,780
Benefit in tax liability₹1,25,840
% of tax savings₹4.12%

The finance minister has announced no change in the old tax regime. However, as a result of the tax cuts proposal in Budget 2025, the government is expected to lose ₹1 lakh crore revenue in direct taxes.

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About The Author

rajeev kumar
Rajeev Kumar is a Deputy Editor at Upstox, and covers personal finance stories. In over 11 years as a journalist, he has written over 2,000 articles on topics like income tax, mutual funds, credit cards, insurance, investing, savings, and pension. He has previously worked with organisations like 1% Club, The Financial Express, Zee Business and Hindustan Times.

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