Income Tax Calculator India — New vs Old Regime
Estimate your income tax under both regimes for FY 2025-26 and FY 2026-27. Enter your gross income, toggle between the new and old regime, and see a slab-wise breakup plus a side-by-side comparison that recommends the cheaper option.
Total tax — new regime
–
including 4% health & education cess
Effective tax rate
–
total tax ÷ gross income
Tax by slab
How the selected regime taxes each income slab.
Slab-wise breakup
| Income slab | Taxable in slab | Tax |
|---|
How income tax is computed
India taxes individuals slab by slab. Each slice of your taxable income is taxed at its own slab rate, and the slices are added up. Then you subtract the standard deduction (for salaried people), apply the Section 87A rebate or marginal relief if you qualify, and finally add the 4% health and education cess.
New regime slabs (FY 2025-26 & FY 2026-27)
| Taxable income | Rate |
|---|---|
| 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% |
Salaried individuals get a ₹75,000 standard deduction. If your taxable income is ₹12 lakh or less, the 87A rebate wipes out the tax entirely (maximum rebate ₹60,000). Just above ₹12 lakh, marginal relief caps your tax at the amount by which your income exceeds ₹12 lakh.
Old regime slabs
| Taxable income | Rate |
|---|---|
| Up to ₹2.5 lakh | Nil |
| ₹2.5 – 5 lakh | 5% |
| ₹5 – 10 lakh | 20% |
| Above ₹10 lakh | 30% |
The old regime keeps the ₹50,000 standard deduction for salaried individuals, plus deductions like 80C (₹1.5 lakh), 80D, HRA and home-loan interest. The 87A rebate zeroes your tax up to ₹5 lakh of taxable income (maximum rebate ₹12,500) — with no marginal relief beyond that.
Worked example
A salaried person earns ₹12 lakh and claims ₹1.5 lakh of 80C deductions:
- New regime: taxable = 12,00,000 − 75,000 = ₹11,25,000 → within the ₹12 lakh rebate limit → tax ₹0.
- Old regime: taxable = 12,00,000 − 50,000 − 1,50,000 = ₹10,00,000 → slab tax ₹1,12,500 → no rebate → + 4% cess = ₹1,17,000.
So the new regime wins by ₹1,17,000 here. Push the deductions to ₹4+ lakh (80C + HRA + home-loan interest) and the old regime can still come out ahead. That is exactly why comparing both matters.
Income Tax Calculator FAQs
Which is better — the new or old tax regime?
It depends on your deductions. If you claim few deductions — no 80C, HRA or home-loan interest — the new regime's lower slabs and ₹12 lakh rebate usually win. If you claim large deductions — 80C, 80D, HRA and home-loan interest together — the old regime can still be cheaper. This calculator works out both and tells you which one is lower.
What is the Section 87A rebate?
Section 87A gives you a full rebate on your slab tax when your taxable income is within the limit. That is ₹12 lakh under the new regime (maximum rebate ₹60,000) and ₹5 lakh under the old regime (maximum rebate ₹12,500). The result: zero tax up to those limits, before the 4% cess.
What is marginal relief in the new regime?
Just above ₹12 lakh of taxable income, your slab tax could exceed the extra income you earned. For example, ₹50,000 of extra income could trigger ₹67,500 of tax. Marginal relief caps your tax at the amount by which your income exceeds ₹12 lakh — so earning more never leaves you worse off.
Is the new regime the default option?
Yes. Since FY 2023-24, the new regime has been the default under Indian income tax law. If you want the old regime with its deductions, you must actively choose it while filing your income tax return.
What deductions can I claim in the old regime?
The common ones are 80C (EPF, PPF, ELSS, life insurance — up to ₹1.5 lakh), 80D (health insurance premiums), HRA exemption, home-loan interest up to ₹2 lakh under Section 24, NPS contributions up to ₹50,000 under 80CCD(1B), and the ₹50,000 standard deduction for salaried individuals.
Does this calculator include surcharge?
No. It covers slab tax, the 87A rebate, marginal relief and the 4% health and education cess. It leaves out surcharge, which applies at higher income levels (generally above ₹50 lakh), and special-rate incomes like capital gains. Treat the result as an estimate.
Is this a new tax regime calculator?
Yes. This tool works out your income tax under the new regime by default and also shows what you would pay under the old regime, so you can compare the two side by side and pick the cheaper option for your income and deductions.