The easiest ₹75,000 you'll ever save
The standard deduction is a flat amount taken straight off your salary before tax is calculated. No bills, no proofs, no declarations — every salaried employee and pensioner simply gets it. For FY 2025-26 it's ₹75,000 under the new regime and ₹50,000 under the old.
How much you get, by regime
| Regime | Standard deduction |
|---|---|
| New regime | ₹75,000 |
| Old regime | ₹50,000 |
That extra ₹25,000 under the new regime is a quiet reason it edges ahead for many salaried people, on top of its lower rates. It's also why the new regime's effective tax-free salary reaches about ₹12.75 lakh once you add the Section 87A rebate.
Who can claim it
- Salaried employees — deducted from salary income automatically.
- Pensioners — a pension is treated as salary for this purpose, so retirees get it too.
- It does not apply to income that isn't salary or pension, such as pure business or freelance income.
The calculator applies the correct standard deduction automatically as soon as you tick the "salaried / pensioner" box — new-regime ₹75,000 or old-regime ₹50,000.
Why it matters more than it looks
A flat deduction sounds small, but it comes off the top of your income, so it saves tax at your highest slab rate. For someone in the 20% band, a ₹75,000 standard deduction is worth ₹15,000 in tax — every year, with zero effort. It's the most efficient deduction in the system precisely because there's nothing to claim.
Related reading
Frequently asked questions
What is the standard deduction for FY 2025-26?
75,000 under the new regime and 50,000 under the old regime, for salaried employees and pensioners.
Do pensioners get the standard deduction?
Yes. Pension income is treated as salary, so pensioners get the same standard deduction as salaried employees.
Is the standard deduction available in the new regime?
Yes, and it is actually higher in the new regime at 75,000 versus 50,000 in the old regime.