Income Tax Calculator (India): Old vs New Regime
Compare your income tax under India's old and new regimes for a salaried income and see which one costs less.
This is an estimate for salaried individuals, not tax advice. Rates and limits change with each Budget; confirm them on incometax.gov.in or with a chartered accountant. See our Disclaimer.
Last reviewed: — slabs, rebates, surcharge, cess and deduction limits confirmed for FY 2025-26 and FY 2026-27.
The formula
For each regime the calculator subtracts the allowed deductions from gross salary to get taxable income, applies the slab rates band by band, then reduces the result by the section 87A rebate if taxable income is under the rebate limit. A surcharge is added at higher incomes, and 4% health and education cess is charged on tax plus surcharge.
The new regime allows only the standard deduction here. The old regime also allows the HRA exemption, eligible investments (capped), the additional NPS deduction (capped), home loan interest (capped), health insurance premiums (capped by age) and any other deductions you enter. Marginal relief is applied just above the rebate limit and at surcharge thresholds.
Worked example
Gross salary of ₹15,00,000 in FY 2025-26 with no deductions other than the standard deduction. New regime: taxable income ₹14,25,000; tax is ₹60,000 on the first ₹12,00,000 plus 15% of ₹2,25,000 (₹33,750), so ₹93,750 before cess and ₹97,500 with 4% cess. Old regime: taxable income ₹14,50,000; tax is ₹12,500 + ₹1,00,000 + ₹1,35,000 = ₹2,47,500 before cess and ₹2,57,400 with cess. The new regime is cheaper by ₹1,59,900 in this case.
Old vs new regime: which is better?
The new regime has lower slab rates but almost no deductions; the old regime has higher rates but lets you subtract HRA, eligible investments, home loan interest, health insurance and more. The more deductions you can genuinely claim, the more likely the old regime wins. Enter your actual deductions above to compare.
Limitations
Covers salary income of resident individuals only. It does not model capital gains, business income, employer NPS contributions, the preventive health check-up sub-limit, advance tax or TDS, or special-rate income. Tax slabs, rebate limits and caps are set in one configuration file and change with each Budget.
More worked examples (FY 2025-26, below 60)
Salary ₹12,75,000: the new-regime taxable income is ₹12,00,000, so the section 87A rebate brings tax to ₹0. The old regime taxes ₹12,25,000 at ₹1,87,200. At ₹12,75,001 the new-regime tax is just ₹1, and at ₹12,80,000 it is ₹5,200, because marginal relief limits the tax to the ₹5,000 of income above ₹12,00,000 plus 4% cess.
Salary ₹10,00,000 with ₹1,50,000 of eligible investments and ₹50,000 of NPS: the old regime taxes ₹7,50,000 at ₹65,000, while the new regime is ₹0 on ₹9,25,000, so the new regime saves ₹65,000. Salary ₹15,00,000 with HRA ₹2,04,000, investments ₹1,50,000, home loan interest ₹2,00,000 and health insurance ₹25,000: old taxable income is ₹8,71,000 and tax is ₹90,168, against ₹97,500 under the new regime, so the old regime saves ₹7,332.
At the old-regime rebate: a salary of ₹5,50,000 gives taxable income of ₹5,00,000 and ₹0 tax, but ₹5,75,000 gives ₹18,200.
The caps used in the old regime
- Eligible investments: up to ₹1,50,000. Entering ₹2,00,000 counts only ₹1,50,000.
- Own NPS contribution: up to ₹50,000. Entering ₹80,000 counts only ₹50,000.
- Home loan interest on a self-occupied house: up to ₹2,00,000.
- Health insurance: ₹25,000 for self, spouse and children, or ₹50,000 if an insured person is a senior citizen; the same for parents; ₹1,00,000 in total. A preventive check-up of up to ₹5,000 sits inside those limits. With ₹40,000 for yourself and ₹60,000 for senior parents, the deduction is limited to ₹75,000 and the result says so.
- The "other deductions" box is subtracted in full. The calculator does not check that you are eligible for them.
Inputs and edge cases
The age group changes only the old-regime slabs. For FY 2026-27 the slabs, rebate and deduction limits are the same as for FY 2025-26 in this calculator. A salary of 0 returns zero tax in both regimes and says both cost the same. A blank salary shows "Please enter your gross annual salary." and any negative amount shows "Amounts cannot be negative."
Frequently asked questions
Which tax regime is the default?
The new regime is the default unless you opt for the old one. Salaried employees can switch between regimes each year; confirm the current rule on incometax.gov.in.
Is HRA exemption available in the new regime?
No. HRA exemption, investment deductions and most other deductions are only for the old regime. Use the HRA calculator to find your exempt amount and enter it in the HRA field.
What is the section 87A rebate?
A rebate that reduces tax to nil for resident individuals whose taxable income is under a set limit. The limit and the maximum rebate differ between the new and old regimes.
Does this include surcharge and cess?
Yes. Surcharge applies at higher incomes (with marginal relief), and 4% health and education cess is added on tax plus surcharge.
Why is my tax zero at ₹12,75,000?
The new regime takes ₹75,000 off for the standard deduction, which leaves ₹12,00,000. At that taxable income the section 87A rebate cancels the whole tax. Each rupee above that level is taxed, but never by more than the extra income.
Do the investment and NPS boxes apply to the new regime?
No. They reduce only the old-regime taxable income. The new regime allows the standard deduction and nothing else in this calculator.
How is the better option decided?
Yes. The "Better option" line compares the two totals after cess and names the cheaper regime and the saving. When they are equal, such as at zero tax, it says both cost the same.