Income Tax Calculator
Compare old and new regime estimates using the rules for the selected supported tax period.
Educational Tool Only
This Income Tax Calculator is for educational purposes. Results are estimates based on FY 2024-25 rules. Please consult a CA for ITR filing.
Tax Regime Deep Dive
Compare the same income under both regimes
The new regime is the default for eligible individuals, while the old regime remains available subject to the applicable opting-out rules. A useful comparison considers taxable income after eligible exemptions and deductions, followed by rebate, surcharge and cess.
There is no universal deduction amount at which the old regime becomes better. Salary structure, age, residential status, housing, eligible deductions and income taxed at special rates can change the result.
Use the correct tax period
The slab table and worked examples below cover FY 2025–26, corresponding to AY 2026–27 under the Income-tax Act, 1961. They should not be applied to FY 2024–25 or earlier periods. The Income Tax Department publishes period-specific guidance. [1]
For income earned from 1 April 2026, the Income-tax Act, 2025 uses the term Tax Year. Tax Year 2026–27 means 1 April 2026 to 31 March 2027. FY 2025–26 income continues to use the earlier Act and AY 2026–27 terminology. [2]
Always use the rules programmed for the selected period. A current-year heading alone does not change a calculator's tax logic.
A worked salary comparison for FY 2025–26
Assume a resident salaried individual below 60 with ₹16,00,000 gross salary, no special-rate income and no surcharge. The old-regime illustration includes a ₹50,000 standard deduction, eligible ₹1,50,000 deduction under Section 80C, ₹25,000 under Section 80D and ₹2,00,000 qualifying self-occupied home-loan interest.
| Item | New regime | Old regime |
|---|---|---|
| Gross salary | ₹16,00,000 | ₹16,00,000 |
| Standard deduction | ₹75,000 | ₹50,000 |
| Other reductions in this example | ₹0 | ₹3,75,000 |
| Taxable income | ₹15,25,000 | ₹11,75,000 |
| Slab tax before cess | ₹1,08,750 | ₹1,65,000 |
| Health and Education Cess | ₹4,350 | ₹6,600 |
| Estimated liability | ₹1,13,100 | ₹1,71,600 |
Here the new-regime estimate is lower by ₹58,500. If the same taxpayer also qualifies for a ₹3,00,000 HRA exemption, old-regime taxable income becomes ₹8,75,000 and tax including cess becomes ₹91,000, lower than the new-regime example by ₹22,100.
These are eligibility-based illustrations. HRA and housing-loan claims must each satisfy their own conditions; entering a claim does not establish eligibility.
How to Use the Income Tax Calculator
Select a supported tax period and confirm the rules displayed for it.
Enter age, residential status and income type. Old-regime age benefits apply to qualifying residents; new-regime slabs do not vary by age.
Enter income for the full period under the fields provided.
Add eligible exemptions and deductions without claiming the same amount twice.
Compare taxable income, tax, rebate, surcharge, cess and final liability under both regimes.
Subtract tax already paid or credited only when calculating the remaining payable or refundable amount.
Use dedicated fields and rules for special-rate income. Do not combine capital gains, virtual digital asset income or specially taxed winnings with ordinary salary and assume the result is complete.
How Income Tax Is Calculated
Income is first computed under the relevant heads, including salary, house property, business or profession, capital gains and other sources. Eligible exemptions, expenses, loss adjustments and regime-specific deductions determine taxable income.
Slab rates apply progressively to normal-rate income. Being in a 30% slab does not mean that all income is taxed at 30%. Special-rate income needs separate treatment.
For FY 2025–26, the new-regime resident-individual rebate is up to ₹60,000 where total taxable income does not exceed ₹12 lakh. The old-regime resident-individual rebate is up to ₹12,500 where total taxable income does not exceed ₹5 lakh. Eligibility and special-rate income affect the calculation. Marginal relief can apply just above the new-regime threshold.
After applicable rebate and surcharge, Health and Education Cess is 4% of income tax plus surcharge. TDS, TCS and advance tax are credits or payments against the liability, rather than deductions from taxable income.
Tax Slabs and Deductions for FY 2025–26
New regime slabs for AY 2026–27
| Portion of taxable income | Marginal rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| Above ₹4,00,000 up to ₹8,00,000 | 5% |
| Above ₹8,00,000 up to ₹12,00,000 | 10% |
| Above ₹12,00,000 up to ₹16,00,000 | 15% |
| Above ₹16,00,000 up to ₹20,00,000 | 20% |
| Above ₹20,00,000 up to ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Old regime slabs for individuals below 60 and non residents
| Portion of taxable income | Marginal rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| Above ₹2,50,000 up to ₹5,00,000 | 5% |
| Above ₹5,00,000 up to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
For qualifying resident individuals aged 60 to below 80, the old-regime nil band extends to ₹3 lakh; the next slice to ₹5 lakh is taxed at 5%. For residents aged 80 or above, the nil band extends to ₹5 lakh. The 20% and 30% bands above ₹5 lakh and ₹10 lakh remain the same.
Common differences between the regimes
| Item for FY 2025–26 | Old regime | New regime |
|---|---|---|
| Eligible salary or employment pension standard deduction | Up to ₹50,000 | Up to ₹75,000 |
| HRA and LTA exemptions | Subject to conditions | Generally unavailable |
| Section 80C and Section 80D | Within applicable limits | Unavailable |
| Employee additional NPS deduction under 80CCD(1B) | Subject to conditions | Unavailable |
| Employer NPS deduction under 80CCD(2) | Within applicable limit | Within applicable limit |
| Qualifying self-occupied home-loan interest | Within applicable limit | Unavailable |
These are selected differences, not a complete list. The standard deduction applies to eligible salary or employment pension, not to all income or family pension. Provision numbers shown here belong to the 1961 Act for FY 2025–26; do not carry them into Tax Year 2026–27 without mapping the new law.
The Loan Calculator explains repayments, and the SIP Calculator models regular contributions. Neither establishes eligibility for a tax deduction.
Frequently Asked Questions
Is ₹12 lakh the new basic exemption limit?
Can gross salary of ₹12.75 lakh produce no tax?
Can I switch regimes every year?
Is TDS my final liability?
Can an NRI use the same rebate and age limits?
Scope and Disclaimer
This is an educational estimate, not an ITR filing utility or tax advice. Special-rate income, loss set-offs, agricultural-income integration, foreign income, treaty relief, arrears relief and surcharge marginal relief require specific handling. Only rely on categories explicitly supported by the selected calculation.
Tax rules and forms can change. Check the official Income Tax Department guidance and filing utility for the relevant period. Seek a qualified tax professional's review for facts beyond the calculator's scope.
Sources and Review
- Income Tax Department salaried individuals for AY 2026–27
- Income Tax Department objective and scope of the Income tax Act 2025
Content reviewed on 26 October 2026.