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Income tax calculator: old vs new regime

Tax year 2026-27, the first under the Income-tax Act, 2025. Put in your income and deductions and see which regime costs less, and how much in deductions the old regime needs to win.

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Allowed in both regimes, up to 14% of basic pay plus DA in the new one; in the old one 10%, or 14% for government employers. Enter only the allowed amount.

Old regime deductions

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Capped at ₹1.5 lakh.
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₹25,000 for your family (₹50,000 if senior), plus the same again for parents.
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Up to ₹2 lakh.
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The least of: HRA received; 50% of basic in the 8 listed cities (40% elsewhere); rent minus 10% of basic. Work it out in the HRA calculator.
New regime tax–
Old regime tax–
Lower tax–
Old regime wins above–in deductions, besides the standard one
Slab by slab

Tax, surcharge and cess under each regime

New regime, tax year 2026-27

Budget 2026 kept the slabs that applied in 2025-26. The new regime is the default.

  • Up to ₹4 lakh: nil. ₹4 to 8 lakh: 5%. ₹8 to 12 lakh: 10%. ₹12 to 16 lakh: 15%. ₹16 to 20 lakh: 20%. ₹20 to 24 lakh: 25%. Above ₹24 lakh: 30%.
  • A rebate of up to ₹60,000 means no tax at all when taxable income is ₹12 lakh or less. Just above ₹12 lakh, marginal relief caps the tax at the income above ₹12 lakh.
  • Salaried people get a standard deduction of ₹75,000, so a salary of up to ₹12.75 lakh pays no tax.
  • Almost no other deductions are allowed. The main one is your employer's NPS contribution.

Old regime

  • Below 60: up to ₹2.5 lakh nil, ₹2.5 to 5 lakh 5%, ₹5 to 10 lakh 20%, above ₹10 lakh 30%. The nil band is ₹3 lakh from 60 and ₹5 lakh from 80.
  • A rebate of up to ₹12,500 means no tax when taxable income is ₹5 lakh or less.
  • Standard deduction ₹50,000, plus deductions such as section 123 (old 80C), health insurance, NPS, home loan interest and HRA.

Both regimes

Health and education cess of 4% is added to the tax. Surcharge applies above ₹50 lakh (10%), ₹1 crore (15%), ₹2 crore (25%) and ₹5 crore (37%, old regime only; the new regime stops at 25%), with marginal relief just above each level. Salaried people can pick either regime each year when filing; people with business income can switch back to the new regime only once.

This calculator treats all income at slab rates. Capital gains on shares and funds are taxed at special rates and are not included.

Guides

Questions

Which regime is better for me?

The new regime usually wins unless your deductions are large. The figure under "Old regime wins above" shows how much in deductions you would need, besides the standard deduction, for the old regime to cost less.

Is a salary of ₹12.75 lakh really tax free?

Under the new regime, yes, if it is all salary: ₹12.75 lakh minus the ₹75,000 standard deduction is ₹12 lakh, and the rebate covers the tax up to ₹12 lakh. Special-rate income such as capital gains does not get the rebate.

What changed with the Income-tax Act, 2025?

From 1 April 2026 the new Act replaced the 1961 Act. Section numbers changed, for example 80C is now section 123 and 87A is section 156, and "previous year" became "tax year". The rates for 2026-27 stayed the same.

Sources

For illustration only, for a resident individual with income taxed at slab rates. It is not tax advice. Check with the Income Tax Department's own calculator or a chartered accountant before you file.

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