Every year you choose between two ways of paying income tax. The new regime has lower rates but almost no deductions. The old regime has higher rates but lets you claim deductions like 80C, health insurance, HRA and home loan interest. This calculator works out your tax under both for FY 2026-27 and tells you which is cheaper.
How to use the income tax calculator
- Enter your total yearly income: salary plus interest, rent and any other income.
- Choose whether you are salaried or a pensioner (for the standard deduction) and your age group.
- Fill in your deductions. They only affect the old regime. Leave them at 0 if you don't have them.
New regime slabs (FY 2026-27)
| 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% |
- Standard deduction: ₹75,000 for salaried people and pensioners.
- Rebate: no tax if taxable income is up to ₹12 lakh, so a salary of up to ₹12.75 lakh is tax-free. Just above ₹12 lakh, marginal relief limits the tax to the income above ₹12 lakh.
Old regime slabs
| Taxable income | Below 60 | 60 to 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% |
- Standard deduction: ₹50,000 for salaried people and pensioners.
- Rebate: no tax if taxable income is up to ₹5 lakh.
Both regimes: a 4% health and education cess is added. A surcharge applies above ₹50 lakh (10%), ₹1 crore (15%) and ₹2 crore (25%), plus 37% above ₹5 crore in the old regime only. Marginal relief applies at each level.
Example
A salaried person earns ₹15,00,000 a year, with ₹1,50,000 in 80C investments and a ₹25,000 health insurance premium.
- New regime: taxable income ₹14,25,000, tax ₹97,500
- Old regime: taxable income ₹12,75,000, tax ₹2,02,800
- New regime saves ₹1,05,300 a year.
At this salary, the old regime only matches the new one if your deductions (beyond the standard deduction) add up to about ₹5.44 lakh.
Tax at different salaries
With ₹1,75,000 of deductions in the old regime:
| Salary | New regime | Old regime |
|---|---|---|
| ₹12,75,000 | ₹0 | ₹1,32,600 |
| ₹13,00,000 | ₹26,000 | ₹1,40,400 |
| ₹14,00,000 | ₹81,900 | ₹1,71,600 |
| ₹20,00,000 | ₹1,92,400 | ₹3,58,800 |
| ₹30,00,000 | ₹4,75,800 | ₹6,70,800 |
What this calculator does not include
Capital gains, lottery winnings and other income taxed at special rates are not included, and the rebate does not apply to them. Use the capital gains calculator for those. From April 2026 the Income-tax Act, 2025 has renumbered the deduction sections (such as 80C), but the limits used here are the same.
FAQ
Is income up to ₹12 lakh tax-free?
Yes, under the new regime, taxable income up to ₹12 lakh has no tax because of the rebate. For salaried people that means a salary of up to ₹12.75 lakh, after the ₹75,000 standard deduction.
Which regime is better for me?
For most people the new regime is cheaper. The old regime wins only if you have large deductions, such as full 80C, health insurance, HRA and home loan interest together. Enter your numbers to see.
Can I switch between regimes every year?
Salaried people can choose every year when filing the return. People with business income can switch back and forth only a limited number of times.
What is marginal relief?
If your taxable income is just above ₹12 lakh in the new regime, the tax you pay cannot be more than the income above ₹12 lakh. For example, on ₹12,25,000 the tax is limited to ₹25,000 plus cess.