Income Tax Calculator (Old vs New)
Which tax regime saves you more this year? Enter your income and deductions to compare both, using FY 2026-27 slabs.
How this calculator works
New regime: nil up to ₹4 lakh, then 5%, 10%, 15%, 20% and 25% in ₹4 lakh steps, and 30% above ₹24 lakh. Salaried people get a ₹75,000 standard deduction, and a rebate makes taxable income up to ₹12 lakh tax-free.
Old regime: nil up to ₹2.5 lakh (₹3 lakh for seniors, ₹5 lakh for 80+), 5% up to ₹5 lakh, 20% up to ₹10 lakh and 30% above. You get a ₹50,000 standard deduction plus deductions like 80C, 80D, HRA and home loan interest. Income up to ₹5 lakh is tax-free after rebate.
Both include 4% health and education cess.
Things to keep in mind
- If your deductions are under about ₹4 lakh, the new regime usually wins.
- Salaried people can choose a regime every year. Business owners have limited switching.
- Employer NPS contributions reduce tax in both regimes. Ask your HR about it.
FAQs
Is income up to ₹12 lakh tax-free?
Under the new regime, yes, for taxable income up to ₹12 lakh (₹12.75 lakh salary after standard deduction). Capital gains taxed at special rates do not get this rebate.
Does the new Income-tax Act change my tax?
The Income-tax Act, 2025 applies from 1 April 2026. Section numbers changed, but the slabs and deductions for FY 2026-27 are the same as last year.
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