How it works
Enter your age group, your gross salary or pension for the year, and any other income taxed at slab rates, such as bank interest or rent.
Add your old-regime deductions: section 80C, health insurance under 80D, extra NPS under 80CCD(1B), home loan interest, and your HRA exemption. The new regime ignores these, apart from the standard deduction.
The result shows the tax under both regimes, which is cheaper and by how much. Open the working to see every step: slabs, rebate, surcharge and cess.
The formula
New regime slabs: up to ₹4,00,000 nil; then 5% to ₹8,00,000, 10% to ₹12,00,000, 15% to ₹16,00,000, 20% to ₹20,00,000, 25% to ₹24,00,000, and 30% above that. Standard deduction ₹75,000.
New regime rebate: no tax if taxable income is up to ₹12,00,000 (a rebate of up to ₹60,000), with marginal relief just above it. So salaried income up to ₹12,75,000 is tax free.
Old regime slabs: nil up to ₹2,50,000 (₹3,00,000 for ages 60 to 79, ₹5,00,000 from 80), then 5% to ₹5,00,000, 20% to ₹10,00,000 and 30% above. Standard deduction ₹50,000, and a rebate of up to ₹12,500 if taxable income is up to ₹5,00,000.
On top: surcharge of 10%, 15%, 25% or 37% for income above ₹50 lakh, ₹1 crore, ₹2 crore and ₹5 crore (the new regime caps it at 25%), with marginal relief, then 4% health and education cess.
A worked example
For a gross salary of ₹15,00,000 with ₹1,50,000 under 80C and ₹25,000 of health insurance: the new regime taxes ₹14,25,000 and the tax is ₹97,500. The old regime taxes ₹12,75,000 and the tax is ₹2,02,800. The new regime is cheaper by ₹1,05,300. With much larger deductions (80C, 80D, ₹50,000 NPS, ₹2,00,000 home loan interest and ₹1,80,000 HRA exemption), the old regime comes to ₹84,760 and wins by ₹12,740.
Frequently asked questions
Which regime should I choose?
Compare them with your own numbers. The new regime has lower rates and a higher tax-free limit, so it usually wins unless you claim large deductions such as home loan interest, HRA and 80C together. Salaried people can switch every year, while people with business income have limits on switching.
Is income up to ₹12 lakh really tax free?
In the new regime, if your taxable income is up to ₹12,00,000 the rebate under section 87A cancels the tax. With the ₹75,000 standard deduction, a salary of up to ₹12,75,000 pays no tax. The rebate does not apply to income taxed at special rates, such as some capital gains.
What does this calculator leave out?
Capital gains, business or professional income, agricultural income, foreign income, employer NPS contributions, and deductions such as 80TTB for seniors. It is for people whose income is mainly salary, pension and interest. Use it as an estimate and not for filing.
Is this the same as my TDS?
Not necessarily. Your employer deducts TDS during the year based on the regime you tell them and the declarations you make. The final tax is settled when you file your return.
Do the rules change every year?
Slabs, rebates and limits can change in each Union Budget. The figures here are for FY 2026-27 and were last checked in October 2026. The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026, with the same slab rates for this year.