New regime vs old regime: the basics
Since FY 2023-24 the new tax regime has been the default for individuals. It offers lower slab rates and a large Section 87A rebate but allows only a handful of deductions — the standard deduction for salaried taxpayers and the employer’s NPS contribution being the important ones. The old regime keeps the higher historical slab rates but lets you claim 80C, 80D, HRA, LTA, home-loan interest and the rest. You can choose either regime every year if you have salary income; business owners can switch back only once.
How to use this calculator
Enter your gross annual income and whether you are salaried. Fill in the deductions you can actually claim under the old regime — the calculator ignores them for the new regime automatically, except employer NPS which counts in both. The two cards show tax payable under each regime, the cheaper one is highlighted, and the breakdown tables show slab-by-slab tax, rebate, surcharge and cess.
New regime slabs (FY 2026-27)
| Taxable income | Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4 – 8 lakh | 5% |
| ₹8 – 12 lakh | 10% |
| ₹12 – 16 lakh | 15% |
| ₹16 – 20 lakh | 20% |
| ₹20 – 24 lakh | 25% |
| Above ₹24 lakh | 30% |
Standard deduction is ₹75,000 and the 87A rebate makes tax nil up to a taxable income of ₹12 lakh — so a salaried person earning up to ₹12.75 lakh pays no tax. Just above that threshold, marginal relief ensures the tax never exceeds the income above ₹12 lakh.
Old regime slabs
Nil up to ₹2.5 lakh, 5% up to ₹5 lakh, 20% up to ₹10 lakh and 30% above, with a ₹50,000 standard deduction and an 87A rebate of up to ₹12,500 for taxable income up to ₹5 lakh. Higher basic exemption limits apply to senior citizens (₹3 lakh) and super senior citizens (₹5 lakh).
Surcharge and cess
A 4% health and education cess is added to the tax in both regimes. Surcharge applies on income above ₹50 lakh: 10% up to ₹1 crore, 15% up to ₹2 crore, 25% up to ₹5 crore, and 37% beyond that under the old regime (capped at 25% in the new regime).
Worked example
Salary ₹15 lakh, 80C ₹1.5 lakh, 80D ₹25,000, home-loan interest ₹2 lakh. New regime: taxable ₹14.25 lakh → tax ₹93,750 + cess = ₹97,500. Old regime: taxable ₹10.75 lakh → tax ₹1,35,000 + cess = ₹1,40,400. The new regime wins by about ₹43,000 even with ₹3.75 lakh of deductions. Roughly speaking, the old regime only beats the new one when deductions exceed ₹4–4.5 lakh at this income level, or when HRA is very large.
Deductions the new regime still allows
Standard deduction (₹75,000), employer’s NPS contribution under 80CCD(2) up to 14% of basic for most employees, Agniveer corpus contributions, and family-pension deduction. Everything else — 80C, 80D, HRA, LTA, home-loan interest on a self-occupied house — is available only under the old regime.
This calculator is an estimate for resident individuals under 60 with regular income. It does not handle capital gains, agricultural income, rebate on special-rate income or Section 89 relief.
Frequently asked questions
Which regime is better, old or new?
The new regime has lower slab rates but almost no deductions; the old regime allows 80C, 80D, HRA and home-loan interest deductions. If your total deductions are large (typically above ₹3.5–4 lakh), the old regime may win. Enter your numbers and compare.
What is the Section 87A rebate?
If your taxable income is at or below the rebate threshold for the regime, the tax payable becomes zero. Marginal relief applies for incomes slightly above the threshold in the new regime.
Are the slab rates up to date?
The calculator uses the slab rates configured for the assessment year shown on the page. Tax law changes with each Union Budget — always confirm with the official Income Tax Department calculator before filing.