Income Tax Calculator
Old vs New Regime — FY 2026-27
Estimate income tax under both regimes and pick the one that saves you more. Updated for Budget 2025 slabs.
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What is an Income Tax Calculator?
India gives individual taxpayers two choices each year — the Old Regime with deductions and exemptions (80C, 80D, HRA, standard deduction, home loan interest, etc.) and the New Regime with lower slab rates but almost no deductions.
Our calculator applies the FY 2026-27 slabs from Budget 2025. The New Regime now offers a full rebate under Section 87A up to ₹12 lakh taxable income, a ₹75,000 standard deduction, and marginal relief in the ₹12–12.75 lakh band. The Old Regime retains its ₹50,000 standard deduction and full deduction menu, with the old slabs (5%, 20%, 30%).
Run both numbers. For high-deduction profiles — large home loan interest, ₹1.5L in 80C, family insurance, HRA — the Old Regime often still wins. For salaried employees with minimal deductions, the New Regime almost always wins.
Why use this Income Tax Calculator
Built for Indians, by Indians. Every number, every formula, every slab — tuned to FY 2026-27 reality.
Both regimes, side-by-side
See old and new regime tax simultaneously — the calculator recommends the winner.
Budget 2025 updated
Latest slabs, ₹12L rebate, ₹75K standard deduction, marginal relief band all built in.
4% cess included
Health & Education Cess is auto-added — the number you see is the final liability.
HRA & 80C support
Enter HRA exemption and deductions separately, as the old regime expects them.
Using the Income Tax Calculator in 4 steps
No onboarding, no signup. Answer three fields and the numbers update live.
Enter gross annual income
Use CTC minus employer PF. Include salary, freelancing, interest, and rental income.
Enter deductions
Sum of 80C (PF, ELSS, insurance premium, home loan principal), 80D (health insurance), NPS, etc. Capped at statutory limits.
Enter HRA exemption
Only for the old regime. Use the minimum of: HRA received, 50%/40% of basic, or actual rent minus 10% of basic.
Read the recommendation
The calculator shows tax under both regimes and tells you which one saves more.
Tips to get the most out of it
Pick regime in April, not in March. It controls TDS planning through the year.
If you have a home loan and live in a metro on rent, the Old Regime often still wins — run both numbers carefully.
Under the New Regime, the only popular deductions that survive are employer NPS (80CCD(2)) and standard deduction of ₹75,000.
If taxable income lands between ₹12L and ₹12.75L under the New Regime, marginal relief applies — don’t overpay due to the slab cliff.
Salaried employees can switch regimes every year. Business income has stricter one-time switch rules — plan carefully.
Real-world scenarios
How Indians actually use this calculator — concrete inputs, concrete outcomes.
Salaried, ₹12L income, no big deductions
New Regime wins — full rebate under 87A brings tax to ₹0 after standard deduction. Old Regime would cost ~₹1.17 lakh.
Salaried, ₹18L income, ₹1.5L 80C + ₹50K 80D + ₹2L home loan interest
Old Regime taxable ≈ ₹13.5L → tax ~₹2.14L. New Regime tax ~₹1.72L. New Regime still wins by ~₹42K.
Business income, ₹25L, minimal deductions
Old Regime tax ≈ ₹5.58L. New Regime ≈ ₹4.37L. New Regime saves ~₹1.2L.
Frequently Asked Questions
Still have a question? Our team replies within a business day.
The New Regime rebate under Section 87A has been raised so that income up to ₹12 lakh (after standard deduction, up to ₹12.75L for salaried) attracts zero tax. Slab rates also shifted: ₹4–8L at 5%, ₹8–12L at 10%, ₹12–16L at 15%, ₹16–20L at 20%, ₹20–24L at 25%, above ₹24L at 30%.
If your deductions (80C + 80D + HRA + home loan interest + NPS) add up to more than roughly ₹3.75–4 lakh, Old Regime may win. Below that, New Regime almost always wins. Run both numbers — don’t assume.
Yes, salaried employees get a standard deduction — ₹50,000 under the Old Regime and ₹75,000 under the New Regime. Pensioners too.
Salaried individuals without business income can switch every year. Individuals with business or professional income can opt into the New Regime and switch back to Old only once in a lifetime.
Between ₹12L and ₹12.75L taxable income, the tax payable is capped at the income exceeding ₹12L — prevents a cliff where earning ₹1 more costs you ₹60,000 in tax.
Not directly — capital gains are taxed at special flat rates (STCG 20%, LTCG 12.5% on equity over ₹1.25L) regardless of slab. Calculate those separately and add to the slab tax.
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