Income Tax Calculator
Compare income tax under the new and old regimes side by side and see which one saves you more for FY 2025-26.
India-specific calculator. It uses Indian rules, rates and rupee amounts, and the currency selector is switched off on this page.
This income tax calculator compares your tax liability under both the new tax regime and the old tax regime, so you can see at a glance which one puts more money in your pocket. Enter your annual gross income, tell us whether you are salaried, and add the deductions you claim — the calculator does the rest for FY 2025-26 (AY 2026-27).
How to use the calculator
- Enter your annual gross income — the total before any deductions.
- Select whether you are salaried. Salaried taxpayers get a standard deduction (₹75,000 in the new regime, ₹50,000 in the old regime).
- Fill in your old regime deductions — 80C, 80D, HRA exemption, home loan interest, NPS and any others. Leave them at zero if you don't claim them.
- Press Compare Regimes. The cheaper regime is highlighted with the tax you save.
The deductions section only affects the old regime, because the new regime does not allow most of these deductions. If you have not submitted investment proofs, the new regime is often the simpler and cheaper choice.
New regime tax slabs — FY 2025-26 (AY 2026-27)
₹800,000 and below — 5%
₹1,200,000 and below — 10%
₹1,600,000 and below — 15%
₹2,000,000 and below — 20%
₹2,400,000 and below — 25%
Above ₹2,400,000 — 30%
Old regime tax slabs
₹500,000 and below — 5%
₹1,000,000 and below — 20%
Above ₹1,000,000 — 30%
A 4% health and education cess is added to the tax in both regimes. A surcharge of 10% to 37% applies when total income crosses ₹50 lakh — the new regime caps surcharge at 25%.
Section 87A rebate
- New regime: if taxable income is up to ₹12,00,000, tax up to ₹60,000 is fully rebated — effectively zero tax.
- Old regime: if taxable income is up to ₹5,00,000, tax up to ₹12,500 is rebated.
Worked example
₹15,00,000 salary, salaried, ₹1.5 lakh 80C, ₹25,000 80D
New regime: taxable ₹14,25,000 after ₹75,000 standard deduction → tax ≈ ₹97,500 (including cess).
Old regime: taxable ₹12,75,000 after ₹50,000 standard deduction and ₹1,75,000 deductions → tax ≈ ₹2,02,800 (including cess).
So the new regime saves about ₹1,05,300 in this case.
Tax rules change each year. The figures here are based on FY 2025-26 (AY 2026-27) and are meant for planning — always confirm with the official Income Tax Department utilities before filing.
Who should use this calculator
- Salaried employees who have to declare a regime to their employer and want to know which one leaves more money in hand.
- Anyone claiming 80C, 80D, HRA or home loan interest under the old regime, and wondering whether those deductions are still worth it.
- Freelancers and business owners estimating advance tax on a rough annual figure.
- Anyone planning a bonus, a raise or a second income and wanting to see how it lands in the next slab.
Common mistakes to avoid
- Comparing the two regimes using gross income. Compare the tax on your taxable income in each regime — the standard deduction and your deductions change the answer completely.
- Assuming 80C always saves tax. Under the new regime most deductions simply do not exist, so the investments you make for tax purposes may not reduce your tax at all.
- Forgetting the standard deduction. Salaried taxpayers and pensioners get a flat deduction without any proof — ₹75,000 in the new regime, ₹50,000 in the old one.
- Stopping at the slab tax. Cess is 4% on top, and a surcharge applies above ₹50 lakh — the calculator adds both, so use the total figure.
- Missing the rebate edge. Under the new regime, taxable income up to ₹12,00,000 gets the full 87A rebate. A small amount over that line can cost you far more than the extra income.
How to actually choose a regime
The decision comes down to one comparison: how much you can deduct under the old regime versus how much lower the new regime's slab rates are. The more deductions you genuinely have — 80C, 80D, HRA, home loan interest, NPS — the more the old regime helps. If your deductions are small, the new regime usually wins and is far simpler.
Two practical points. First, employers ask for a declaration at the start of the year; you can change your choice when filing your return, but a wrong declaration can mean TDS was deducted at the wrong rate through the year. Second, do not invest just to claim a deduction — if the investment does not make sense on its own, the tax saved is usually smaller than the money spent.
Income tax terms explained
- Taxable income
- Gross income minus the standard deduction and any eligible deductions. Tax slabs apply to this number, not to your gross salary.
- Standard deduction
- A flat deduction for salaried taxpayers and pensioners, allowed without receipts or investment proofs.
- Section 87A rebate
- A rebate that reduces your tax to zero when taxable income is within a threshold — ₹12,00,000 in the new regime.
- Cess
- A 4% health and education charge calculated on your income tax after the rebate and surcharge.
- Surcharge
- An extra charge on tax for higher incomes, starting above ₹50 lakh. The new regime caps surcharge at 25%.
- Regime
- The set of rules and rates you are taxed under. India offers an old regime with deductions and a new regime with lower rates and almost no deductions.
Frequently asked questions
Which income tax regime should I choose — new or old?
It depends on how many deductions you claim. The new regime offers lower slab rates but almost no deductions (other than the standard deduction and employer NPS). The old regime has higher rates but allows 80C, 80D, HRA, home loan interest and more. Use this calculator to compare both regimes on your actual numbers — the one with the lower total tax is better for you.
How much income is tax-free under the new regime?
Under the new regime for FY 2025-26, taxable income up to ₹12,00,000 qualifies for the full section 87A rebate, so a salaried person can earn up to ₹12,75,000 (after the ₹75,000 standard deduction) and pay zero tax, provided there is no other income.
Is the standard deduction allowed in the new regime?
Yes. Salaried taxpayers and pensioners can claim a standard deduction of ₹75,000 under the new regime and ₹50,000 under the old regime for FY 2025-26. It is available without any investment proof.
Are 80C, 80D and HRA allowed in the new regime?
No. The new regime does not allow most deductions, including 80C (PPF, ELSS, LIC, principal repayment), 80D (health insurance), HRA exemption and home loan interest on self-occupied property. These deductions only reduce tax under the old regime.
Does this calculator include surcharge and cess?
Yes. The result adds the applicable surcharge (10% to 37% for very high incomes) and the 4% health and education cess. Marginal relief on surcharge is not applied, so the tax may be slightly overstated for incomes just above a surcharge threshold.