The Income Tax Calculator works out how much income tax you owe in India under both the New and the Old tax regimes, side by side, so you can instantly see which one saves you more. Enter your gross annual income, age group, and any deductions, and it calculates the taxable income, income tax, surcharge, and cess for each regime.
It supports FY 2025-26 (AY 2026-27) and FY 2024-25 (AY 2025-26). The New regime uses lower slab rates but allows almost no deductions beyond the standard deduction, while the Old regime has higher rates but lets you claim deductions like 80C, 80D, HRA, and home loan interest. This calculator does the comparison for you. Everything runs in your browser.
How to calculate your income tax
- Choose the financial year and your age group.
- Enter your gross annual income (before deductions).
- Add your deductions — these apply to the Old regime (80C, 80D, HRA, home loan interest, NPS, etc.).
- Compare the New and Old regime results and see which one gives you a lower tax.
New regime vs Old regime
The New regime (now the default) has lower, wider slab rates but does not allow most deductions and exemptions — only the standard deduction of ₹75,000 for salaried people. The Old regime has higher slab rates but lets you reduce your taxable income with deductions such as 80C (up to ₹1.5 lakh), 80D (health insurance), HRA, home loan interest, and NPS.
If you claim large deductions, the Old regime can work out cheaper; if you have few deductions, the New regime is usually better. The right choice depends on your numbers, which is why this tool shows both.
New regime slabs — FY 2025-26
- Up to ₹4,00,000: Nil
- ₹4,00,001 – ₹8,00,000: 5%
- ₹8,00,001 – ₹12,00,000: 10%
- ₹12,00,001 – ₹16,00,000: 15%
- ₹16,00,001 – ₹20,00,000: 20%
- ₹20,00,001 – ₹24,00,000: 25%
- Above ₹24,00,000: 30%
- Plus a 4% health and education cess on the tax.
Rebate and tax-free income
Under the New regime for FY 2025-26, a rebate under section 87A means income up to ₹12,00,000 attracts no tax — and with the ₹75,000 standard deduction, a salaried person can earn up to ₹12,75,000 and pay zero tax. Under the Old regime, the 87A rebate makes taxable income up to ₹5,00,000 tax-free.
Frequently Asked Questions
Which is better, the new or old tax regime?
It depends on your deductions. If you claim large deductions (80C, HRA, home loan interest, etc.), the Old regime may be cheaper; with few deductions, the New regime usually wins. This calculator shows both so you can pick the lower one.
How much income is tax-free under the new regime for FY 2025-26?
Income up to ₹12,00,000 is effectively tax-free thanks to the section 87A rebate, and with the ₹75,000 standard deduction a salaried person can earn up to ₹12,75,000 with zero tax.
What deductions can I claim in the old regime?
Common ones include section 80C (up to ₹1.5 lakh for PF, ELSS, LIC, etc.), 80D (health insurance), HRA exemption, home loan interest under section 24(b) (up to ₹2 lakh), and NPS under 80CCD(1B) (up to ₹50,000).
Does the new regime allow any deductions?
Very few. Salaried taxpayers get the ₹75,000 standard deduction, but most other deductions and exemptions are not available under the New regime.
Are these calculations exact?
They are close estimates for the selected financial year. Tax laws change with every Budget, and situations like surcharge marginal relief and special incomes are not fully modelled. Always verify with the Income Tax Department or a qualified professional before filing.