Compare tax under the old and new regime for FY 2026-27 and FY 2025-26
| New regime | Old regime | |
|---|---|---|
| Gross income | ₹12,00,000 | ₹12,00,000 |
| Deductions | ₹75,000 | ₹50,000 |
| Taxable income | ₹11,25,000 | ₹11,50,000 |
| Tax on slabs | ₹52,500 | ₹1,57,500 |
| Rebate u/s 87A | -₹52,500 | ₹0 |
| Surcharge | ₹0 | ₹0 |
| Health & education cess (4%) | ₹0 | ₹6,300 |
| Total tax | ₹0 | ₹1,63,800 |
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Tax estimate based on the rules described on this page, not tax advice. Rules change every year, so confirm with a chartered accountant or the Income Tax Department before you file or plan. Terms of use
How to Use
- Choose the financial year and your age group (senior citizens get a higher exemption in the old regime).
- Enter your annual gross salary and any other income such as savings interest or rent.
- To compare with the old regime properly, turn on Add old-regime deductions and fill in 80C, 80D, HRA exemption, home loan interest and NPS. Only the old regime uses them; with the switch off, the old regime is worked out with no deductions.
- The tax under both regimes updates as you type. The headline shows the regime with lower tax and how much you save.
- Open “How the tax is worked out” to see taxable income, slab tax, rebate, surcharge and cess side by side. Use copy result or share to keep the numbers.
Old regime or new regime?
Every individual taxpayer in India can pick one of two ways to calculate income tax. The new regime (section 115BAC) is the default. It has lower rates and a large rebate, but almost no deductions. The old regime has higher rates but lets you subtract deductions such as section 80C investments, health insurance (80D), HRA and home loan interest. Which one costs you less depends on how much you can deduct. This income tax calculator works out both and shows you the difference.
New regime slabs (FY 2025-26 and FY 2026-27)
| Taxable income | 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% |
These slabs were introduced by the Finance Act, 2025. Budget 2026 (1 February 2026) kept them unchanged for FY 2026-27, the first year under the Income-tax Act, 2025. A 4% health and education cess applies on the tax, and a surcharge applies above ₹50 lakh (capped at 25% in the new regime).
Why ₹12 lakh (₹12.75 lakh for salaried) is tax-free
Under section 87A, a resident individual in the new regime whose taxable income is up to ₹12,00,000 gets a rebate of up to ₹60,000. That's exactly the slab tax on ₹12 lakh, so the tax becomes zero. Salaried people also get a standard deduction of ₹75,000, which is why a salary of up to ₹12,75,000 pays no tax.
Just above ₹12 lakh, marginal relief applies: your tax can't be more than the income you earned above ₹12 lakh. For a taxable income of ₹12,10,000 the slab tax is ₹61,500, but you pay only ₹10,000 (plus cess).
Old regime slabs
| Taxable income | Below 60 | 60 – 79 | 80 and above |
|---|---|---|---|
| Up to ₹2,50,000 | Nil | Nil | Nil |
| ₹2,50,001 – ₹3,00,000 | 5% | Nil | Nil |
| ₹3,00,001 – ₹5,00,000 | 5% | 5% | Nil |
| ₹5,00,001 – ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
The old regime's rebate is smaller: up to ₹12,500 if taxable income is ₹5 lakh or less. Its standard deduction for salaried people is ₹50,000.
Which deductions count where
| Deduction | Old regime | New regime |
|---|---|---|
| Standard deduction (salary) | ₹50,000 | ₹75,000 |
| Section 80C (PF, PPF, ELSS, life insurance, tuition fees…) | Up to ₹1,50,000 | No |
| Section 80D (health insurance) | Yes | No |
| HRA exemption | Yes | No |
| Home loan interest, self-occupied (24(b)) | Up to ₹2,00,000 | No |
| Own NPS contribution, 80CCD(1B) | Up to ₹50,000 | No |
| Employer's NPS contribution, 80CCD(2) | Yes | Yes |
A quick rule of thumb
With the ₹12 lakh rebate, the new regime wins for most salaried people. The old regime only comes out ahead when your deductions are large: at a ₹15 lakh salary you need about ₹5.4 lakh of deductions on top of the standard deduction, and at ₹20 lakh about ₹7.1 lakh. That usually means a full 80C, a home loan, NPS and a sizeable HRA exemption all together. Don't rely on the rule, though. Enter your own numbers and the calculator shows the exact difference.
This calculator covers salary and income taxed at slab rates for resident individuals. Capital gains, which are taxed at special rates, aren't included. Section numbers on this page (115BAC, 87A, 80C and so on) are the familiar ones from the Income-tax Act, 1961; the Income-tax Act, 2025, which applies from 1 April 2026, renumbers them without changing these slabs and limits. Tax rules change with every budget, so confirm with the Income Tax Department or a tax professional before you file.