Income Tax Calculator
Old regime vs new regime, side by side. Compare your tax liability under both regimes and see which one leaves more in hand.
About the Income Tax Calculator
Choosing between the old and new tax regimes is an arithmetic question, not a preference. The new regime has wider slabs and a larger standard deduction but disallows almost every deduction. The old regime taxes more steeply but lets you subtract 80C, HRA, home loan interest and the rest. This calculator computes both, applies rebate, surcharge and cess, and tells you which one costs less.
Applies to: financial year 2025-26 (assessment year 2026-27). Rates change with each Finance Act — confirm current figures before filing.
How the tax is computed
Taxable income = gross - standard deduction - eligible deductions, then slab rates, then rebate, surcharge and 4% cess
- Standard deduction
- Applied to salary income under both regimes
- Rebate u/s 87A
- Wipes out tax entirely below the rebate threshold
- Surcharge
- Applies above Rs 50 lakh, on a sliding scale
- Cess
- 4% health and education cess on tax plus surcharge
Deductions other than the standard deduction are ignored in the new regime, which is exactly why the comparison matters.
Using this calculator
- Enter your annual gross salary and any other income.
- Add the deductions you can actually substantiate.
- Read the tax under each regime.
- Check the highlighted regime and the amount it saves.
Income Tax Calculator FAQs
Which tax regime is better for me?
It depends on how many deductions you genuinely claim. The new regime usually wins for people with few deductions, while the old regime tends to win once 80C, HRA and home loan interest together are large. This calculator settles it with your own numbers.
Can I switch between the old and new regimes?
Salaried taxpayers without business income may choose afresh each financial year when filing. Those with business or professional income can switch back to the old regime only once, after which the choice becomes permanent.
What is the Section 87A rebate?
It removes tax liability entirely for taxpayers below a threshold of taxable income. The thresholds differ between regimes, and the rebate applies before cess, which is why a small increase in income can create a disproportionate jump in tax.
Is the standard deduction available in both regimes?
Yes, for salaried taxpayers and pensioners, though the amount differs between regimes. It is subtracted automatically from salary income and requires no proof or investment of any kind.
Does the new regime allow any deductions at all?
A limited set survives, most notably the standard deduction on salary and the employer NPS contribution under 80CCD(2). The common ones - 80C, 80D, HRA and home loan interest on a self-occupied property - are not available.
What is health and education cess?
A 4% levy applied on top of your income tax plus any surcharge. It is not a separate tax on income, so it scales with your tax liability rather than your earnings, and it applies under both regimes.
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Important: this calculator provides general information and arithmetic only. It is not personal financial, tax or investment advice. Projected returns are illustrations based on the rate you enter, not guarantees, and market-linked investments can fall in value. Verify current tax rates and scheme terms before acting, and consult a qualified adviser where the decision matters.