Income Tax Calculator — Old vs New Regime Compared

Enter Parameters

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Annual Gross Salary

Section 80C Deductions (PPF, ELSS, EPF)

Other Deductions (HRA, Health 80D, NPS)

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Income Tax Calculator Quick Reference

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Quick Answer

This income tax calculator compares your Indian tax under the new and old regimes for FY 2026-27 and recommends the cheaper one: the new regime taxes income at 0–30% slabs after a ₹75,000 standard deduction, with no tax up to ₹12 lakh of taxable income, while the old regime allows a ₹50,000 standard deduction plus 80C (capped at ₹1.5 lakh) and other deductions; 4% cess applies to both. For example, a ₹12,00,000 salary with ₹1,50,000 in 80C and ₹1,20,000 of HRA pays ₹0 under the new regime versus ₹92,040 under the old. It covers salaried individuals and ignores surcharge.

How This Calculation Works

Values calculate dynamically in real-time as you enter figures or adjust sliders.
The equation on the right is exactly what the calculator runs — check any result by hand.

Core Equation

New Regime Slabs (FY 2026-27, unchanged from Budget 2025):
  Up to ₹4 lakh     → 0%
  ₹4L – ₹8L         → 5%
  ₹8L – ₹12L        → 10%
  ₹12L – ₹16L       → 15%
  ₹16L – ₹20L       → 20%
  ₹20L – ₹24L       → 25%
  Above ₹24L        → 30%
  Section 87A rebate: no tax if taxable income ≤ ₹12 lakh (marginal relief above it)
  + 4% Health & Education Cess on tax

Old Regime Slabs: up to ₹2.5L 0% | ₹2.5L–5L 5% | ₹5L–10L 20% | above ₹10L 30% (87A rebate up to ₹5L)

Taxable Income = Gross Income − Standard Deduction − Allowed Deductions
Source: incometaxindia.gov.in

How to Use the Income Tax Calculator

Quick 3-step guide for accurate and fast calculations

STEP 01

Enter your annual gross salary

In the Income Tax Calculator, fill in Annual Gross Salary, Section 80C Deductions (PPF, ELSS, EPF) and Other Deductions (HRA, Health 80D, NPS).

STEP 02

Read your tax under new regime

The Income Tax Calculator instantly shows Tax under New Regime, Tax under Old Regime, Tax Savings with Best Regime and Recommended Tax Regime, updating as you type.

STEP 03

Compare scenarios

Change Section 80C Deductions (PPF, ELSS, EPF) to see how it affects Tax under New Regime, then check the formula below to verify the math.

Specific Instructions:

Enter your annual gross salary, your Section 80C investments (EPF, PPF, ELSS — capped at ₹1.5 lakh) and other old-regime deductions such as HRA, 80D health insurance and NPS. The calculator applies the standard deduction automatically (₹75,000 new regime, ₹50,000 old regime), computes tax plus 4% cess under both regimes side by side, and recommends the one that costs you less.

Income Tax Calculator Formula

The Income Tax Calculator uses the following formula, calculated in your browser as you change the inputs:

New Regime Slabs (FY 2026-27, unchanged from Budget 2025): Up to ₹4 lakh → 0% ₹4L – ₹8L → 5% ₹8L – ₹12L → 10% ₹12L – ₹16L → 15% ₹16L – ₹20L → 20% ₹20L – ₹24L → 25% Above ₹24L → 30% Section 87A rebate: no tax if taxable income ≤ ₹12 lakh (marginal relief above it) + 4% Health & Education Cess on tax Old Regime Slabs: up to ₹2.5L 0% | ₹2.5L–5L 5% | ₹5L–10L 20% | above ₹10L 30% (87A rebate up to ₹5L) Taxable Income = Gross Income − Standard Deduction − Allowed Deductions Source: incometaxindia.gov.in

Sources:

Worked Example: Income Tax Calculator

Gross salary: ₹12,00,000 | 80C: ₹1,50,000 | HRA: ₹1,20,000 Old Regime: 12L − 50k std − 1.5L − 1.2L = ₹8,80,000 taxable → ₹88,500 + 4% cess = ₹92,040 New Regime: 12L − 75k std = ₹11,25,000 taxable → ≤ ₹12L, so the 87A rebate makes it ₹0 The new regime saves ₹92,040 here.

Calculations run in your browser — your inputs are never stored on our servers.Formula sources & methodology

Frequently Asked Questions — Income Tax Calculator

Which tax regime is better — old or new?

The new regime is better if you have few deductions and claim little under 80C, HRA, or LTA. The old regime is better if you have high 80C investments, home loan interest deductions, HRA, and other exemptions. Since Budget 2025 made taxable income up to ₹12 lakh tax-free under the new regime, the old regime now wins only with large deductions (typically well above ₹4–5 lakh, e.g. HRA plus home-loan interest). Compare both in the calculator above.

What is the standard deduction in 2025-26?

For salaried employees and pensioners, the standard deduction is ₹75,000 a year under the new regime (raised from ₹50,000 in Budget 2024) and ₹50,000 under the old regime. The same amounts apply for FY 2026-27. It is deducted automatically, with no proof needed. Under the new regime it lifts the tax-free salary to ₹12,75,000: ₹12,75,000 − ₹75,000 = ₹12,00,000 taxable, which the Section 87A rebate brings to zero tax.

Can I claim both HRA and home loan interest?

Yes, you can claim HRA exemption (if you pay rent) and home loan interest deduction (under Section 24) simultaneously — provided the property for which you have the home loan is not the same as the one you are renting. Both deductions are available only under the old tax regime.