Income Tax Calculator India (New vs Old Regime)
India has two income-tax regimes for individuals, and since the new regime is the default, many people want to know whether the old one — with its deductions — would save them money. This calculator computes your tax under both for FY 2026-27 (assessment year 2027-28) and shows which is lower, by how much, and your effective rate and monthly take-home. It applies the slab rates, the standard deduction, the rebate for lower incomes (including the cliff under the old regime and the marginal relief near ₹12 lakh under the new one), surcharge with marginal relief and 4% health and education cess. It covers salary and other slab income for resident individuals; capital gains, business income, TDS credits and interest on late payment are not included.
How to use the income tax calculator india (new vs old regime)
- Enter your gross annual salary and any other income.
- Choose your age group and whether the standard deduction applies.
- For the old regime, enter your eligible deductions and exemptions — the calculator applies the legal caps for 80C, NPS and home-loan interest.
- Read the tax under each regime and which one is lower, then check the slab table.
- Confirm figures against Form 16 and the Income Tax Department’s own tools before filing.
Formula
New regime slabs: up to ₹4 lakh nil; 4–8 lakh 5%; 8–12 lakh 10%; 12–16 lakh 15%; 16–20 lakh 20%; 20–24 lakh 25%; above 24 lakh 30%. Standard deduction ₹75,000 for salaried; rebate up to ₹60,000 makes tax nil up to ₹12 lakh taxable income. Old regime slabs (below 60): up to ₹2.5 lakh nil; 2.5–5 lakh 5%; 5–10 lakh 20%; above 10 lakh 30% (basic exemption ₹3 lakh for seniors and ₹5 lakh for those 80+). Standard deduction ₹50,000; rebate up to ₹12,500 for taxable income up to ₹5 lakh. Surcharge of 10%, 15%, 25% (and 37% under the old regime) applies above ₹50 lakh, ₹1 crore, ₹2 crore and ₹5 crore (new regime capped at 25%), with marginal relief. Cess = 4% of tax plus surcharge.
Worked examples
₹15 lakh salary, no deductions
Under the new regime the taxable income is ₹14.25 lakh after the ₹75,000 standard deduction and the tax is ₹97,500.00; under the old regime with no deductions it is ₹2,57,400.00. Better regime: New regime — saves ₹1,59,900.00.
₹15 lakh salary with heavy deductions
With ₹3 lakh HRA exemption, ₹1.5 lakh 80C, ₹50,000 NPS, ₹2 lakh home-loan interest and ₹25,000 other deductions the old regime tax falls to ₹59,800.00 against ₹97,500.00 under the new one — Old regime — saves ₹37,700.00.
The ₹12 lakh line
A salaried person earning ₹12.75 lakh has taxable income of ₹12 lakh under the new regime and pays ₹0.00. One rupee above the line does not trigger the full slab tax, because marginal relief limits it to the extra income.
New regime slabs and what to know
| Taxable income (new regime) | 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% |
Quick reference: tax on salaried income (new regime)
| Gross salary | Tax incl. cess |
|---|---|
| ₹10,00,000 | ₹0.00 |
| ₹12,75,000 | ₹0.00 |
| ₹15,00,000 | ₹97,500.00 |
| ₹20,00,000 | ₹1,92,400.00 |
| ₹30,00,000 | ₹4,75,800.00 |
Old-regime rebate is a cliff
Under the old regime, tax is nil up to ₹5 lakh of taxable income because of the rebate, but there is no marginal relief just above it, so a small rise in income can bring a sudden jump in tax. The new regime does have marginal relief just above ₹12 lakh. Always verify against the Income Tax Department’s official calculator.
Practice problems
Try these yourself first, then check your answer. The answers come from the calculator above.
- Salaried, ₹18 lakh gross, no deductions. Which regime is better and what is the tax?
Show answer
Better regime for you: New regime — saves ₹2,00,200.00 · Tax under the new regime: ₹1,50,800.00 · Tax under the old regime: ₹3,51,000.00
Common mistakes to avoid
- Assuming the old regime is always better because of deductions. Compare both with your real deductions.
- Counting deductions above their legal caps (80C ₹1.5 lakh, NPS 80CCD(1B) ₹50,000, home-loan interest ₹2 lakh).
- Forgetting that old-regime rebate is a cliff: at ₹5 lakh taxable income tax is nil, and a little above it the tax jumps because there is no marginal relief under the old regime.
- Using this for capital gains, business income or foreign income, which have separate rules.
- Not checking the latest rules. Budgets can change slabs, deductions and rebates.
Frequently asked questions
Which tax regime is better, new or old?
It depends on your deductions. As a rough guide, the old regime tends to win only when your eligible deductions and exemptions are large. Enter your own numbers to compare.
Is income up to ₹12 lakh tax-free?
Under the new regime, resident individuals with taxable income up to ₹12 lakh pay no tax because of the rebate; for salaried people that means gross salary up to ₹12.75 lakh after the ₹75,000 standard deduction. Special-rate income such as capital gains is excluded from the rebate.
What is the standard deduction?
₹75,000 under the new regime and ₹50,000 under the old regime for salaried individuals and pensioners.
Are the FY 2026-27 slabs different from last year?
The slab rates used here match the Income Tax Department’s published AY 2026-27 slabs, and published summaries report no slab changes announced for FY 2026-27. Confirm on incometax.gov.in before filing.
Does this include surcharge and cess?
Yes. 4% health and education cess and surcharge for incomes above ₹50 lakh, with marginal relief.
Is this tax advice?
No. It is an educational estimate. Use Form 16, the official portal or a chartered accountant for filing.
Sources and further reading
By Thomas M, Registered Investment Adviser (South Carolina), who launched his own financial advisory firm in 2010. Last reviewed September 26, 2026. Found a mistake? Tell us; see our editorial policy.