Compare your tax liability under the New Tax Regime and the Old Tax Regime side by side, using the latest slabs.
New Tax Regime (FY 2025-26 / AY 2026-27):
| Income Slab | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Standard deduction of ₹75,000 (salaried) applies before these slabs. A Section 87A rebate of up to ₹60,000 applies for taxable income up to ₹12,00,000, effectively making tax payable zero up to that level.
Old Tax Regime:
| Income Slab | Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Standard deduction of ₹50,000 (salaried) applies before these slabs, along with any 80C/80D/home loan/other deductions you claim. A Section 87A rebate of up to ₹12,500 applies for taxable income up to ₹5,00,000. A 4% health and education cess applies on tax in both regimes.
The new tax regime is usually better if you have few deductions to claim. The old regime is usually better if your eligible deductions (80C, HRA, home loan interest, 80D, etc.) are large relative to your income. This calculator shows both side by side so you can compare directly.
For FY 2025-26 (AY 2026-27), a Section 87A rebate of up to ₹60,000 effectively makes tax payable zero for taxable income up to ₹12 lakh under the new regime. For salaried individuals, the ₹75,000 standard deduction pushes the effective tax-free gross salary to about ₹12.75 lakh.
Common old-regime deductions include Section 80C (up to ₹1.5 lakh — PPF, ELSS, life insurance, etc.), Section 80D (health insurance premiums), HRA exemption, and home loan interest under Section 24(b) (up to ₹2 lakh for self-occupied property), among others.
Yes, though far fewer. The new regime allows the standard deduction (₹75,000 for salaried individuals), employer's NPS contribution under Section 80CCD(2), and interest on a home loan for a let-out (rented) property — but not most other Chapter VI-A deductions like 80C or 80D.
No — this calculator covers the standard slab calculation and cess, which is accurate for the vast majority of taxpayers. Surcharge (applicable only above ₹50 lakh income) and its associated marginal relief provisions are more complex and not included here; consult a tax professional if your income exceeds ₹50 lakh.
Since the new tax regime became the default in India, choosing between it and the old regime has become an annual decision for most taxpayers. The right choice depends entirely on how much you can claim in deductions under the old regime versus the simplicity and lower rates of the new one.
This calculator computes your tax liability under both regimes using the current FY 2025-26 slabs, so you can see exactly which one saves you more money based on your actual income and deductions — rather than relying on rules of thumb that may not fit your specific situation.
Note: tax laws and slabs are subject to change with each Union Budget. This calculator reflects the rates confirmed for FY 2025-26 (AY 2026-27), retained for FY 2026-27. Always verify against the latest official notification or consult a tax professional before filing.
