How to use the Income Tax Calculator (New vs Old Regime)
- Enter your gross annual income, before any deductions.
- Choose whether you are salaried or a pensioner, which gives a standard deduction.
- Enter the total deductions you could claim in the old regime, such as 80C, 80D, HRA and home loan interest.
- Choose your age group, then compare the tax under both regimes.
Formula used
New regime slabs: nil to ₹4 lakh, then 5%, 10%, 15%, 20%, 25% and 30% in steps of ₹4 lakh, with a rebate that makes income up to ₹12 lakh tax free. Old regime: nil to ₹2.5 lakh, 5%, 20% above ₹5 lakh and 30% above ₹10 lakh. Add surcharge where it applies and 4% cess.
Worked example
Here is the Income Tax Calculator (New vs Old Regime) worked through with the example values shown above, so you can check each step by hand.
| Inputs | |
|---|---|
| Gross annual income | ₹15,00,000 |
| Salaried or pensioner? | Yes (standard deduction applies) |
| Deductions claimed in the old regime (80C, 80D, HRA, home loan interest and so on) | ₹2,00,000 |
| Age (affects old-regime slabs) | Below 60 |
| Result | |
| Lower tax payable | ₹97,500 |
| Which regime is cheaper | New regime is cheaper by ₹97,500 |
| Tax under the new regime | ₹97,500 |
| Tax under the old regime | ₹1,95,000 |
| Taxable income, new regime | ₹14,25,000 |
| Taxable income, old regime | ₹12,50,000 |
Tax at different incomes
For a salaried person under 60 with 2,00,000 of old-regime deductions.
| Gross annual income | Tax under the new regime | Tax under the old regime |
|---|---|---|
| ₹7,00,000 | ₹0 | ₹0 |
| ₹10,00,000 | ₹0 | ₹65,000 |
| ₹12,00,000 | ₹0 | ₹1,06,600 |
| ₹15,00,000 | ₹97,500 | ₹1,95,000 |
| ₹20,00,000 | ₹1,92,400 | ₹3,51,000 |
| ₹30,00,000 | ₹4,75,800 | ₹6,63,000 |
The two regimes at a glance
Under the new regime, the first ₹4 lakh of taxable income is taxed at nil, then 5% up to ₹8 lakh, 10% up to ₹12 lakh, 15% up to ₹16 lakh, 20% up to ₹20 lakh, 25% up to ₹24 lakh and 30% above that. Salaried people and pensioners get a standard deduction of ₹75,000, and few other deductions are allowed.
The old regime has an exemption limit of ₹2.5 lakh (₹3 lakh from age 60, ₹5 lakh from age 80), then 5% up to ₹5 lakh, 20% up to ₹10 lakh and 30% above that. The standard deduction is ₹50,000, and deductions such as 80C, 80D, HRA and home loan interest apply. A 4% health and education cess is added to the tax under both.
The rebate: why ₹12 lakh is tax free
Under the new regime a resident individual whose taxable income is up to ₹12 lakh gets a rebate that cancels the tax. For a salaried person that means gross income up to ₹12.75 lakh. With the default settings, an income of ₹12,75,000 gives new-regime tax of ₹0.
Just above the limit, marginal relief stops the tax from jumping. At ₹13,00,000 gross (taxable ₹12,25,000) the tax is limited to the amount by which taxable income exceeds ₹12 lakh, plus cess, which comes to ₹26,000, rather than the full slab calculation. The old-regime rebate is smaller: it applies only to taxable income up to ₹5 lakh.
When the old regime wins
With the defaults (₹15,00,000 gross, ₹2,00,000 of deductions, salaried) the new regime gives ₹97,500 and the old gives ₹1,95,000. Deductions have to be large before the old regime catches up: at ₹18,00,000 gross with ₹4,50,000 of deductions the old regime is ₹2,10,600 against ₹1,50,800 under the new.
A rough rule is that the old regime needs deductions well beyond the ₹1.5 lakh of 80C once income is high. Try different deduction amounts in the calculator to find where the two taxes meet for you. Remember that old-regime deductions need real investments or expenses, such as home loan interest or rent, so do not count money you would not otherwise spend.
What this calculator does not cover
It handles salary-type income taxed at normal slab rates. It leaves out capital gains taxed at special rates, business income, tax already deducted (TDS) and advance tax. Surcharge is applied at 10%, 15% and 25% above ₹50 lakh, ₹1 crore and ₹2 crore (and 37% above ₹5 crore in the old regime), without marginal relief on the surcharge, so results at those levels are approximate.
Tax rules change in the Union Budget and can be amended during the year. The figures here follow the slabs for FY 2026-27 as published at the time of writing. Treat the result as an estimate and check against the Income Tax Department’s calculator or with a tax professional before filing.
Frequently asked questions
Which regime should I choose?
Enter your own deductions and compare. The new regime is usually better unless your old-regime deductions are large.
Can I switch between regimes every year?
Salaried individuals can generally choose each year, but people with business income have restrictions. Check the current rules.
Is the standard deduction included?
Yes. It is ₹75,000 under the new regime and ₹50,000 under the old, for salaried people and pensioners.
What deductions count in the old regime?
Common ones are 80C (up to ₹1.5 lakh), 80D medical insurance, HRA, home loan interest and the NPS extra deduction. Add their total in one box.
Does it include cess?
Yes, a 4% health and education cess is added on the tax and surcharge.
Is this the exact tax I will owe?
It is an estimate for salary-type income. Other income, capital gains and TDS can change the final figure.
This calculator gives estimates for information only. Actual figures from a bank, employer, tax authority or doctor may differ. It is not financial, tax, legal or medical advice.