Income Tax Calculator
Compare the old vs new tax regime for FY 2025-26 & 2026-27 and see which one saves you more.
New regime
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Old regime
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Estimates for FY 2025-26 & 2026-27. Excludes surcharge on very high incomes and marginal-relief edge cases. Verify before filing.
How to read the old vs new regime comparison
India lets you pick between two income tax systems each year. The new regime has lower slab rates but almost no deductions. The old regime has higher rates but lets you subtract deductions like 80C, 80D, HRA and home loan interest. This calculator computes both side by side — including the standard deduction, the Section 87A rebate and the 4% cess — and tells you which one saves you more.
The new regime slabs (FY 2025-26 & 2026-27)
- Up to ₹4,00,000 — 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%
With the ₹75,000 standard deduction and the 87A rebate, a salaried person pays zero tax up to about ₹12.75 lakh of salary under the new regime.
The old regime
Smaller slabs (nil to ₹2.5 lakh, then 5%, 20% and 30%) and a ₹50,000 standard deduction — but you can claim 80C (₹1.5 lakh), 80D, HRA, home loan interest (₹2 lakh) and NPS. Its advantage is everything you subtract before the slabs apply.
The simple break-even
Because the new regime's rates are now so low, it wins for most people with modest deductions. The old regime only pulls ahead once total deductions cross roughly ₹3.5–4 lakh — typically a full 80C plus a home loan and HRA. Below that, the new regime almost always costs less.
For worked examples, see how much tax you pay on a ₹15 lakh salary and our full old vs new regime guide.
Frequently asked questions
Old regime vs new regime — which is better?
The new regime has lower rates and a higher rebate but allows almost no deductions. The old regime has higher rates but lets you claim deductions like 80C, 80D, HRA and home loan interest. If you have large deductions the old regime can win; otherwise the new regime usually does. This calculator compares both for you.
What is the Section 87A rebate?
A rebate that makes your tax zero below a limit. Under the new regime for FY 2025-26 the limit is ₹12,00,000 (₹12.75 lakh gross for salaried, after standard deduction). Under the old regime the limit is ₹5,00,000.
What is the standard deduction?
A flat deduction for salaried individuals and pensioners — ₹75,000 under the new regime and ₹50,000 under the old regime. This calculator applies it when you mark yourself as salaried.
Is the 4% cess included?
Yes. A 4% Health and Education Cess is added on top of the income tax in both regimes, and the figures shown include it.