Income Tax Calculator India: New vs Old Regime
This calculator works out your income tax in India under both the new regime and the old regime for FY 2025-26, FY 2026-27 or FY 2024-25, and tells you which one leaves you with more money. It applies the standard deduction, slab rates, the Section 87A rebate with marginal relief, surcharge and 4% cess in the order the law applies them.
Enter your gross salary. If you want to test the old regime, fill in your deductions too. Leave them at zero to see the new regime only, which is what most salaried people now use.
New regime slabs (FY 2025-26 and FY 2026-27)
| Taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 to ₹8,00,000 | 5% |
| ₹8,00,001 to ₹12,00,000 | 10% |
| ₹12,00,001 to ₹16,00,000 | 15% |
| ₹16,00,001 to ₹20,00,000 | 20% |
| ₹20,00,001 to ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Standard deduction is ₹75,000. The Section 87A rebate cancels the tax when taxable income is ₹12,00,000 or less, so a salary of ₹12,75,000 pays no tax. Just above that, marginal relief caps the tax at the income over ₹12,00,000. Surcharge applies above ₹50 lakh (10%), ₹1 crore (15%) and ₹2 crore (25%). Health and education cess is 4% of tax plus surcharge.
Tax = Slab tax − Rebate (87A) + Surcharge + 4% cess
Old regime keeps the older slabs (nil to ₹2.5 lakh, 5% to ₹5 lakh, 20% to ₹10 lakh, 30% above) with a ₹50,000 standard deduction, a ₹12,500 rebate up to ₹5 lakh, and deductions such as 80C, 80D, HRA and home loan interest. The basic exemption rises to ₹3 lakh for senior citizens and ₹5 lakh at 80 and above.
The FY 2026-27 option applies the slabs in force from FY 2025-26. Update the rate table if the Finance Act 2026 changes them.
Worked example
Gross salary ₹20,00,000 in FY 2025-26, no deductions beyond the standard deduction:
| New regime | Old regime | |
|---|---|---|
| Standard deduction | ₹75,000 | ₹50,000 |
| Taxable income | ₹19,25,000 | ₹19,50,000 |
| Slab tax | ₹1,85,000 | ₹3,97,500 |
| Cess (4%) | ₹7,400 | ₹15,900 |
| Total tax | ₹1,92,400 | ₹4,13,400 |
The new regime saves ₹2,21,000 here. The old regime would need more than ₹6 lakh of deductions to catch up, which is possible with high rent in a metro plus a home loan, but rare.
When the old regime still wins
The old regime can beat the new one when your deductions are large relative to income: HRA exemption on high rent in a metro, home loan interest up to ₹2 lakh, the full ₹1.5 lakh under 80C, 80D premiums and NPS under 80CCD(1B). As a rough rule, at ₹15 lakh of salary you need over ₹4 lakh of deductions for the old regime to be worthwhile, and the threshold rises with income.
Salaried employees can switch regime every year when filing. Tell your employer your choice at the start of the year so TDS is deducted correctly, or you may face a large adjustment at year end. Income taxed at special rates, such as short-term capital gains on shares, is not eligible for the 87A rebate under the new regime.
Frequently asked questions
Is income up to ₹12 lakh tax-free in the new regime?
Effectively yes for FY 2025-26 onwards. The Section 87A rebate cancels the tax when taxable income is up to ₹12,00,000. With the ₹75,000 standard deduction, a salary of ₹12,75,000 pays no tax. Above that, marginal relief phases the tax in gradually.
What changed for FY 2026-27?
The slabs used here are the ones in force from FY 2025-26. If the Finance Act 2026 changes the slabs, rebate or standard deduction, the rate table in this calculator will be updated. Check the date at the bottom of the page.
Which regime should I choose?
Run both. If your deductions (HRA, 80C, 80D, home loan interest, NPS) are small, the new regime almost always wins because of its lower rates and higher rebate. If you pay high rent in a metro and have a home loan and full 80C, the old regime may still be cheaper. The calculator shows the difference.
Does this include surcharge and cess?
Yes. Cess is 4% of tax plus surcharge. Surcharge applies above ₹50 lakh of taxable income at 10%, 15%, 25% and (old regime only) 37%, with marginal relief so a small increase in income cannot cause a larger increase in tax.
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Last updated . Formulas are shown on the page and checked against the worked example.
This calculator gives an estimate for salaried income under the Income-tax Act as amended by the Finance Act 2025. It does not cover every deduction, exemption or special-rate income. Confirm your tax on the official portal or with a chartered accountant before filing.