Calculator

Income Tax Calculator – Old vs New Regime

Estimate your tax under both regimes and see which one costs you less. For salaried individuals below 60.

Annual salary income (₹)

Your gross taxable salary for the year, before the standard deduction.

Old regime deductions (optional)

My parents are senior citizens (80D limit is higher)

Enter your annual salary income to see the comparison.

Estimate only. Rules as of FY 2026-27 (AY 2027-28), same slabs as FY 2025-26. Surcharge, senior citizen slabs and capital gains are not modelled. Confirm with the Income Tax Department or a tax professional before filing.

About the Income Tax Calculator

The Income Tax Calculator estimates your income tax for a salaried individual under both the new and old regimes from your annual salary and deductions, and tells you which regime costs less. It includes the standard deduction, Section 87A rebate and 4% cess. It is an estimate and does not replace advice from a tax professional.

Income Tax Calculator quick facts

Rules used:

FY 2026-27 (AY 2027-28)

New regime:

Nil up to ₹4 lakh, then 5% to 30% above ₹24 lakh, standard deduction ₹75,000

Rebate:

Section 87A: no tax if taxable income is ₹12 lakh or less in the new regime

Old regime:

Nil up to ₹2.5 lakh, then 5%, 20% and 30%, standard deduction ₹50,000

Cess:

4% health and education cess

Not included:

Surcharge, senior citizen slabs and capital gains

How to use the Income Tax Calculator

Enter your annual salary income.
Optionally add old-regime deductions such as 80C, 80D, NPS, home loan interest and your HRA exemption.
Read the tax under each regime and the verdict on which one saves more.

The two regimes

The new regime is the default. Its slabs are: nil up to ₹4 lakh, 5% from ₹4 to 8 lakh, 10% from ₹8 to 12 lakh, 15% from ₹12 to 16 lakh, 20% from ₹16 to 20 lakh, 25% from ₹20 to 24 lakh and 30% above that, with a ₹75,000 standard deduction for salaried people. The old regime has lower exemption slabs (nil up to ₹2.5 lakh, 5%, 20% and 30%) but allows deductions. A 4% health and education cess is added to both.

Section 87A rebate

Under the new regime there is no tax if taxable income is up to ₹12 lakh, and marginal relief just above it. With the standard deduction, that means a salary of about ₹12.75 lakh can be tax-free. The rebate does not apply to special-rate income such as capital gains.

Worked examples

A salary income of ₹9 lakh pays no tax under the new regime. A salary income of ₹20 lakh pays about ₹1,92,400 including cess under the new regime. Under the old regime the answer depends entirely on your deductions, which is why the calculator lets you enter them.

Which regime wins?

The old regime tends to win only when your deductions are large, for example HRA plus the full 80C, 80D, NPS and home loan interest. Enter your own numbers and read the verdict instead of relying on a rule of thumb.

Common mistakes

Entering take-home pay instead of gross salary income, claiming old-regime deductions while choosing the new regime, and forgetting that surcharge applies at higher incomes. This calculator does not model surcharge, senior citizen slabs or capital gains.

Frequently asked questions about the Income Tax Calculator

Is salary up to ₹12.75 lakh really tax-free?

Under the new regime, yes for a salaried person: the ₹75,000 standard deduction brings ₹12.75 lakh down to ₹12 lakh of taxable income, which the Section 87A rebate fully covers. The rebate does not apply to special-rate income such as capital gains.

Which regime should I choose?

Compare both with your own deductions. The old regime usually only wins when you claim a lot, such as HRA, 80C, 80D, NPS and home loan interest together.

What does the old regime allow that the new one does not?

The old regime lets you claim deductions and exemptions such as HRA, Section 80C investments, 80D health insurance, NPS under 80CCD(1B) and home loan interest. The new regime allows the standard deduction only, in return for lower slab rates. The calculator compares both for you.

Does this include surcharge?

No. Surcharge applies only at higher incomes, above ₹50 lakh, and is not modelled here. If your income is in that range the calculator shows a notice instead of a figure, so you know to check with a tax professional or the Income Tax Department.

Does it cover senior citizens or capital gains?

No. The calculator is built for salaried individuals below 60 and does not model the slabs for senior citizens or tax on capital gains. For those cases, use the Income Tax Department calculator or ask a tax professional.

Are these figures official?

The rates come from the Income Tax Department rules as we understand them and are shown with a "rules as of" label. Confirm with incometax.gov.in or a tax professional before filing.

Free, no sign-up. Reviewed 15 October 2026 by the Gopafy team. See all free tools.