Income Tax Calculator, Old vs New Regime

Compare your tax under both regimes for the tax year 2026-27, the first year under the Income-tax Act 2025. Slabs are unchanged by Budget 2026. Free, private, nothing to sign up for.

Income Tax: Old vs New Regime

FY 2026-27 slabs, unchanged by Budget 2026. Includes the 4% cess, the rebate that makes tax nil up to ₹12 lakh of taxable income in the new regime, and surcharge above ₹50 lakh.

Old regime deductions, leave at 0 if you don't have them

New Regime Slabs for 2026-27

  • Up to ₹4 lakh: nil
  • ₹4 to 8 lakh: 5%
  • ₹8 to 12 lakh: 10%
  • ₹12 to 16 lakh: 15%
  • ₹16 to 20 lakh: 20%
  • ₹20 to 24 lakh: 25%
  • Above ₹24 lakh: 30%

Salaried people get a ₹75,000 standard deduction. A rebate of up to ₹60,000 makes tax nil when taxable income is ₹12 lakh or less, so a salary of up to ₹12.75 lakh pays no tax. Just above ₹12 lakh, marginal relief keeps tax from exceeding the income above ₹12 lakh. A 4% health and education cess applies on top.

Old Regime

Slabs are nil up to ₹2.5 lakh (₹3 lakh at 60, ₹5 lakh at 80), 5% to ₹5 lakh, 20% to ₹10 lakh and 30% above, with a ₹50,000 standard deduction and a rebate up to ₹5 lakh of taxable income. In exchange you can claim HRA, 80C up to ₹1.5 lakh, 80D health insurance, home loan interest up to ₹2 lakh and more.

Example: ₹15 lakh salary, with ₹1.5 lakh in 80C and ₹25,000 in 80D.

New regime: about ₹97,500. Old regime: about ₹2,02,800. The new regime wins unless large HRA or home loan interest is added.

Common Questions

Can I switch between regimes?

Salaried people can choose each year when filing the return. With business or professional income you can switch back to the old regime only once, so think it through.

Is ₹12.75 lakh salary really tax free?

Yes, in the new regime. ₹12.75 lakh minus the ₹75,000 standard deduction is ₹12 lakh of taxable income, and the rebate cancels the tax. At ₹13 lakh, marginal relief keeps tax to about ₹26,000 including cess, instead of over ₹66,000.

Which deductions are allowed in the new regime?

Mainly the ₹75,000 standard deduction and your employer’s NPS contribution up to 14% of salary. HRA, 80C, 80D and home loan interest on a self occupied house are not allowed.

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