Income tax calculator
Old vs new regime, side by side — see which one actually saves you money.
Quick answer
An income tax calculator for FY 2025-26 (AY 2026-27) compares tax under India's old and new regimes side by side. Use it as a new tax regime calculator or old regime calculator — the new regime offers lower slabs and ₹75,000 standard deduction; the old regime rewards 80C, HRA, and home-loan deductions.
Old-regime deductions
New regime wins
You save ₹1,11,800 a year by choosing the new regime with these deductions.
New regime
₹0
total tax
- Taxable income
- ₹11.3L
- Effective rate
- 0.0%
Old regime
₹1,11,800
total tax
- Taxable income
- ₹9.8L
- Effective rate
- 9.3%
Deductions only reduce tax under the old regime. The new regime gives a bigger standard deduction (₹75,000) and lower slabs but ignores 80C, 80D, HRA and the rest.
Rates & rules checked on 25 July 2026 · based on FY 2025-26 (AY 2026-27).
What this tells you
Every year salaried Indians agonise over the old versus new tax regime. This calculator settles it: enter your income and deductions, and see the tax and take-home under both, side by side.
The new regime is now the default. It has lower slab rates and a ₹75,000 standard deduction, but scraps almost all exemptions. The old regime taxes more but rewards 80C, 80D, HRA and home-loan interest.
How it's calculated
We apply the FY 2025-26 slabs for each regime, the standard deduction, the Section 87A rebate, then add 4% cess and any surcharge. In the new regime, a resident individual's total income must be at most ₹12L for the rebate, and the rebate offsets only ordinary slab-rate tax. This salary calculator models ordinary salary income only; special-rate income such as capital gains still counts toward the threshold but needs a separate tax calculation.
Common questions
- Is income up to ₹12 lakh really tax-free?
- For a resident individual in the FY 2025-26 new regime, the rebate can offset up to ₹60,000 of ordinary slab-rate tax when total income is at most ₹12L (₹12.75L gross if salary is the only income, after the ₹75,000 standard deduction). Special-rate income still counts toward ₹12L, and its tax is not rebated. Marginal relief limits the initial jump on ordinary slab-rate income above ₹12L.
- Which regime should I choose?
- If your deductions (80C, 80D, HRA, home-loan interest) are large, the old regime often wins. If you don't claim many deductions, the new regime almost always wins. This calculator does the maths for your exact numbers.
- Can I switch regimes every year?
- Salaried individuals without business income can choose afresh each year while filing. Those with business income face restrictions on switching back.
Jargon, explained
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Sources
For general education, not personalised financial advice. Verify current rates and rules before acting — tax laws and interest rates change.