How to use it
- Choose the financial year and your age group (age matters only in the old regime).
- Enter your gross yearly salary or pension and any other income such as interest.
- Fill in deductions you actually claim. Those under “Old regime only” are ignored in the new regime.
- Compare the total tax under both regimes, see which is lower and by how much, and open the slab-wise calculation.
New regime or old regime?
Every individual can choose between two ways of calculating income tax. The new regime is the default: lower slab rates and a ₹75,000 standard deduction for salary and pension, but almost no other deductions. The old regime has higher rates and a ₹50,000 standard deduction, but lets you claim HRA, 80C investments, health insurance, home-loan interest and more. Which one is cheaper depends on how much you can claim — that is exactly what this calculator compares.
New regime slabs (FY 2026-27 and FY 2025-26)
| Taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
A resident individual whose taxable income is up to ₹12 lakh gets a rebate of up to ₹60,000, so no tax is payable — ₹12.75 lakh for salaried people after the standard deduction. Just above ₹12 lakh, marginal relief limits the tax to the income above ₹12 lakh.
Old regime slabs
| Taxable income | Below 60 | 60 – 79 | 80 and above |
|---|---|---|---|
| Up to ₹2,50,000 | Nil | Nil | Nil |
| ₹2,50,001 – ₹3,00,000 | 5% | Nil | Nil |
| ₹3,00,001 – ₹5,00,000 | 5% | 5% | Nil |
| ₹5,00,001 – ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
In the old regime the rebate is up to ₹12,500 when taxable income is up to ₹5 lakh. In both regimes, a surcharge applies above ₹50 lakh (10%), ₹1 crore (15%) and ₹2 crore (25%); the old regime adds 37% above ₹5 crore, while the new regime caps it at 25%. A 4% health and education cess is added to the tax and surcharge.
Worked examples (FY 2026-27)
- Salary ₹12,75,000, new regime: taxable income ₹12,00,000 after the ₹75,000 standard deduction. Tax on slabs is ₹60,000, and the rebate cancels it — nil tax.
- Salary ₹12,85,000, new regime: taxable income ₹12,10,000; tax on slabs ₹61,500. Marginal relief limits it to the ₹10,000 earned above ₹12 lakh, plus 4% cess = ₹10,400.
- Salary ₹15,00,000 with ₹1.5 lakh of 80C and ₹25,000 of health insurance: new regime ₹97,500; old regime ₹2,02,800. The new regime saves ₹1,05,300.
- Same salary with heavy deductions (₹50,000 interest income, HRA ₹1.2 lakh, 80C ₹1.5 lakh, health insurance ₹25,000 for self and ₹30,000 for senior-citizen parents, home-loan interest ₹2 lakh, NPS ₹50,000): new regime ₹1,05,300; old regime ₹1,01,400 — now the old regime is ₹3,900 cheaper.
FY 2026-27 and the Income-tax Act, 2025
The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. It uses a single “tax year” instead of “previous year” and “assessment year”, and many sections have new numbers, but the Finance Bill, 2026 made no change to the tax rates. FY 2025-26 (AY 2026-27) is still governed by the 1961 Act.
| Provision | 1961 Act | 2025 Act |
|---|---|---|
| New tax regime | 115BAC | 202 |
| Rebate | 87A | 156 |
| Standard deduction | 16(ia) | 19 |
| Investments (PPF, ELSS, LIC…) | 80C | 123 |
| NPS contributions | 80CCD | 124 |
| Health insurance | 80D | 126 |
Disclaimer: this calculator gives an estimate for a resident individual with salary, pension and ordinary income. It does not cover capital gains, business income or other special cases. Consult a chartered accountant or the official calculator on the Income Tax Department’s website before filing.
Planning what to do with the tax you save? See how it could grow with the PPF calculator or the SIP calculator, or check a home-loan EMI with the EMI calculator.