Income Tax Calculator
Calculate your income tax liability for FY 2025-26 and FY 2026-27, and instantly compare the Old Regime against the New Regime to see which one saves you more.
✓ Updated for Budget 2026 slabs ✓ Section 87A rebate applied automatically ✓ Works on mobile
Income Tax Calculator
FY 2025-26 (AY 2026-27) & FY 2026-27 (AY 2027-28)
Old Regime vs New Regime: What's the Difference?
Two different ways to calculate the same tax liability.
India currently allows individual taxpayers to choose between two tax regimes each year: the Old Regime, which uses higher slab rates but allows a wide range of deductions and exemptions (Section 80C investments, HRA, home loan interest, and more), and the New Regime (under Section 115BAC of the Income Tax Act, 1961, carried forward as Section 202 under the Income Tax Act, 2025), which offers lower slab rates and a higher standard deduction, but disallows most of those deductions.
The New Regime is the default option unless a taxpayer actively opts for the Old Regime. Because the two regimes calculate tax so differently, the "better" choice genuinely depends on how many deductions a taxpayer can claim — someone with substantial 80C investments, HRA, and home loan interest may still come out ahead under the Old Regime, while someone with few deductions is almost always better off under the New Regime.
This calculator computes your tax liability under both regimes side by side, so you can see exactly which one results in a lower tax bill for your specific income and deduction profile — before you have to commit to one when filing.
Income Tax Slab Rates
The exact slabs this calculator applies for FY 2025-26 and FY 2026-27.
Nil up to ₹4 lakh, 5% from ₹4–8L, 10% from ₹8–12L, 15% from ₹12–16L, 20% from ₹16–20L, 25% from ₹20–24L, and 30% above ₹24 lakh.
Nil up to ₹2.5 lakh, 5% from ₹2.5–5L, 20% from ₹5–10L, and 30% above ₹10 lakh (higher exemption thresholds apply for senior and super senior citizens).
If taxable income (under normal slab rates) is up to ₹12 lakh, a rebate effectively brings tax liability to zero under the New Regime.
After applying any rebate, a 4% Health and Education Cess is added on top of the remaining tax to arrive at the final liability.
How the Income Tax Calculator Works
Three steps to a side-by-side regime comparison.
Enter Basic Details
Select your financial year and age group — senior and super senior citizens get different exemption thresholds under the Old Regime.
Enter Income & Deductions
Enter your gross salary, other income, and any deductions you're eligible for — these apply only under the Old Regime.
Automatic Calculation
The calculator applies the correct standard deduction, slab rates, rebate, and cess for both regimes simultaneously.
Compare & Decide
See your tax liability under both regimes side by side, along with exactly how much you'd save by choosing the better one.
Complete Guide to Calculating Income Tax in India
What the calculator is doing behind the scenes.
Standard Deduction: ₹50,000 vs ₹75,000
Every salaried taxpayer is entitled to a standard deduction — a flat amount subtracted from gross salary before tax is calculated, with no receipts or proof required. Under the Old Regime, the standard deduction is ₹50,000. Under the New Regime, it's higher, at ₹75,000, which is one of the ways the New Regime partially compensates for disallowing most other deductions.
The Section 87A Rebate: Why Many People Pay Zero Tax
Section 87A provides a rebate that effectively cancels out tax liability for taxpayers below a certain income threshold. Under the New Regime, this threshold is ₹12 lakh of taxable income (charged at normal slab rates) — meaning many salaried individuals with a total income around ₹12.75 lakh (after the ₹75,000 standard deduction) end up with zero tax payable. Importantly, the rebate only applies to income taxed at normal slab rates; income like capital gains or lottery/online gaming winnings, taxed at special rates, isn't eligible.
Deductions Available Only Under the Old Regime
The Old Regime allows a wide range of deductions the New Regime disallows: Section 80C investments (up to ₹1.5 lakh, covering things like PPF, ELSS, and life insurance premiums), HRA exemption, home loan interest on a self-occupied property, Section 80D health insurance premiums, and the set-off of house property losses. The New Regime allows almost none of these, aside from the employer's contribution to NPS.
Senior and Super Senior Citizen Exemption Thresholds
Under the Old Regime, the basic exemption threshold rises with age: ₹2.5 lakh for those under 60, ₹3 lakh for senior citizens (60–80), and ₹5 lakh for super senior citizens (80 and above). The New Regime's slab rates, by contrast, are the same regardless of age.
Surcharge on Very High Incomes
For taxable income above ₹50 lakh, an additional surcharge applies on top of the calculated tax: 5% between ₹50 lakh and ₹1 crore, 15% between ₹1 crore and ₹2 crore, 25% between ₹2 crore and ₹5 crore, and 37% (Old Regime) or capped at 25% (New Regime) above ₹5 crore. This calculator focuses on income levels below the surcharge threshold; for very high incomes, a tax professional should confirm the exact surcharge treatment.
Why the "Better" Regime Depends on Your Deductions
Someone with minimal deductions — no significant 80C investments, no home loan, no HRA claim — will typically find the New Regime more beneficial, thanks to its lower slab rates and higher standard deduction. Someone with substantial deductions, particularly a large home loan interest claim on a self-occupied property, may still find the Old Regime cheaper overall, even with its higher slab rates. There's no universal answer — running both calculations side by side, as this calculator does, is the only reliable way to know which applies to your specific situation.
Step-by-Step Income Tax Examples
Worked calculations across different income levels and deduction profiles.
Example 1 — Zero Tax at ₹12.75 Lakh Salary
Salary ₹12,75,000, no other income, New Regime.
Example 2 — ₹15 Lakh Salary, Old vs New Regime
Salary ₹15,00,000 plus ₹50,000 other income and ₹57,000 deductions (adapted example).
Example 3 — ₹8 Lakh Salary
Salary ₹8,00,000, no other income or deductions.
Example 4 — ₹20 Lakh Salary
Salary ₹20,00,000, no deductions.
Example 5 — Senior Citizen, ₹10 Lakh Salary
Age 65, salary ₹10,00,000, Old Regime, no deductions.
Example 6 — Large 80C and Home Loan Claims
Salary ₹18,00,000, 80C = ₹1,50,000, Home Loan Interest = ₹2,00,000, Old Regime.
Example 7 — Freelancer with Business Income
Salary ₹10,00,000 + freelance income ₹3,00,000, no deductions.
Example 8 — ₹30 Lakh Salary
Salary ₹30,00,000, no deductions.
Quick Reference Tables
Slab rates, deduction comparison, and salary-wise tax at a glance.
| Income Slab (₹) | Tax Rate |
|---|---|
| Up to 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% |
| Income Slab (₹) | Tax Rate |
|---|---|
| Up to 2.5 lakh | Nil |
| 2.5 lakh – 5 lakh | 5% |
| 5 lakh – 10 lakh | 20% |
| Above 10 lakh | 30% |
| Taxable Income | New Regime | Old Regime | Savings |
|---|---|---|---|
| ₹8 lakh | Nil | ₹75,400 | ₹75,400 |
| ₹12 lakh | Nil | ₹1,79,400 | ₹1,79,400 |
| ₹15 lakh | ₹1,09,200 | ₹2,73,000 | ₹1,63,800 |
| ₹20 lakh | ₹2,08,000 | ₹4,29,000 | ₹2,21,000 |
| ₹30 lakh | ₹4,99,200 | ₹7,41,000 | ₹2,41,800 |
Benefits of Using an Income Tax Calculator
Why compare regimes with a tool instead of manual slab math.
Instant Comparison
See your tax under both regimes side by side, the moment you enter your income details.
Updated Slab Rates
Reflects the latest FY 2025-26 and FY 2026-27 slabs, including Budget 2026 changes.
Automatic Rebate & Cess
Applies Section 87A rebate and 4% Health & Education Cess correctly without manual lookup.
Age-Based Exemptions
Accounts for the higher Old Regime exemption thresholds for senior and super senior citizens.
Clear Savings Figure
See exactly how much choosing the better regime saves you, in rupees.
Mobile-Friendly
Run the comparison from anywhere before deciding which regime to opt for while filing.
Who Should Use This Income Tax Calculator?
Where this comparison genuinely helps different kinds of taxpayers.
Salaried Employees
Comparing regimes before submitting a declaration to your employer for TDS purposes at the start of the financial year.
Freelancers & Professionals
Estimating tax liability on combined salary and business/professional income before advance tax deadlines.
Senior & Super Senior Citizens
Checking how the higher Old Regime exemption thresholds change the regime comparison for retirees.
Homeowners with a Loan
Evaluating whether home loan interest deductions make the Old Regime worthwhile despite its higher slab rates.
Investors Using 80C
Checking whether ELSS, PPF, and insurance premium deductions tip the balance toward the Old Regime.
First-Time Filers
Getting a clear side-by-side comparison before choosing a regime for the very first ITR filing.
Common Income Tax Calculation Mistakes
Avoid these errors when estimating or comparing your tax liability.
Applying deductions under the New Regime
Most deductions like 80C, HRA, and home loan interest on a self-occupied property simply don't apply under the New Regime — including them overstates New Regime savings.
Forgetting the standard deduction differs by regime
The Old Regime allows ₹50,000; the New Regime allows ₹75,000 — using the wrong figure skews the comparison.
Missing the Section 87A rebate cutoff
The rebate only fully offsets tax up to ₹12 lakh taxable income under the New Regime — income just above that threshold is taxed normally, without a partial rebate.
Applying the rebate to special-rate income
Capital gains and certain other special-rate income aren't eligible for the Section 87A rebate, even if total income is under the threshold.
Forgetting the 4% cess
The Health and Education Cess applies on top of the calculated tax (after rebate) under both regimes — omitting it understates the final liability.
Using outdated slab rates
Slab rates have changed across recent budgets — always confirm you're using the rates for the specific financial year you're filing for.
Frequently Asked Questions
Everything taxpayers ask about calculating income tax in India.
What is the New Tax Regime?
The New Tax Regime, under Section 115BAC of the Income Tax Act, 1961 (Section 202 under the Income Tax Act, 2025), offers lower slab rates and a higher standard deduction, but disallows most deductions and exemptions available under the Old Regime.
Is there really zero tax on income up to ₹12 lakh?
Yes, under the New Regime, thanks to the Section 87A rebate — but only for income taxed at normal slab rates. Special-rate income like capital gains isn't covered by this rebate.
What are the New Regime slab rates for FY 2025-26 and FY 2026-27?
Nil up to ₹4 lakh, 5% from ₹4–8 lakh, 10% from ₹8–12 lakh, 15% from ₹12–16 lakh, 20% from ₹16–20 lakh, 25% from ₹20–24 lakh, and 30% above ₹24 lakh.
What are the Old Regime slab rates?
Nil up to ₹2.5 lakh, 5% from ₹2.5–5 lakh, 20% from ₹5–10 lakh, and 30% above ₹10 lakh, with higher exemption thresholds for senior and super senior citizens.
What is the standard deduction under each regime?
₹50,000 under the Old Regime and ₹75,000 under the New Regime, for salaried and pensioner taxpayers.
Which deductions are only available under the Old Regime?
Section 80C investments, HRA exemption, home loan interest on a self-occupied property, Section 80D health insurance premiums, and the set-off of house property losses, among others.
Can I switch between regimes every year?
Salaried individuals without business income can generally choose their preferred regime each financial year. Those with business or professional income have more limited switching options — check current rules for your specific situation.
How is the exemption threshold different for senior citizens?
Under the Old Regime, the basic exemption is ₹2.5 lakh for those under 60, ₹3 lakh for senior citizens (60–80), and ₹5 lakh for super senior citizens (80 and above). The New Regime doesn't vary by age.
What is the Health and Education Cess?
A 4% cess applied on top of the calculated tax liability (after any rebate), under both regimes, which funds health and education initiatives.
Does surcharge apply to everyone?
No. Surcharge only applies to taxable income above ₹50 lakh, starting at 5% and rising to 25–37% depending on income level and regime.
Is the New Regime always better?
Not always — taxpayers with substantial deductions (large 80C investments, HRA, home loan interest) may still find the Old Regime cheaper. Comparing both is the only reliable way to know.
What counts as "taxable salary" in this calculator?
Gross salary minus the applicable standard deduction (₹50,000 Old Regime, ₹75,000 New Regime), before any further deductions specific to the Old Regime.
Is this calculator accurate?
It provides an illustrative estimate based on published slab rates, standard deductions, rebate rules, and cess. It doesn't cover every exemption, surcharge nuance, or special-rate income scenario — consult a tax professional for a binding calculation.
Is it free to use?
Yes, the Income Tax Calculator is free, with no signup required.
Does it work on mobile?
Yes. The calculator and regime comparison are fully responsive and work well on phones and tablets.
Compare Your Tax Regimes Instantly
Enter your income and deductions to see exactly which regime — Old or New — saves you more this year.