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Income Tax Calculator

Enter your salary and any other income to see your tax under both regimes side by side. If you invest in PPF, pay rent or have a home loan, add those in the old-regime deductions — that is what decides which regime comes out lower.

Tax year 2026-27 (1 April 2026 to 31 March 2027), for resident individuals.

Before any deductions; leave blank if you have no salary

Interest and other income taxed at slab rates

Deductions — old regime only (optional)

PPF, EPF, ELSS, life insurance, home-loan principal — up to ₹1,50,000

Enter what you are allowed to claim

Up to ₹50,000

Up to ₹2,00,000

Use the CTC to in-hand calculator to work this out

Up to ₹2,500

Education loan interest, donations and so on

Enter your salary or other income to compare the two regimes.

How to use this tool

  1. Enter your gross salary for the year — the total before any deductions — and any other income taxed at slab rates, such as savings or FD interest.
  2. Choose your age. It changes the tax-free limit under the old regime only.
  3. If you might choose the old regime, open the deductions section and enter what you can claim: Section 123 investments, health insurance, extra NPS, home-loan interest, HRA exemption and professional tax.
  4. Read the tax under each regime. The one with the lower figure is highlighted, and the breakdown shows every step from gross income to total tax.

Formula and method

New regime slabs, tax year 2026-27

0–4 lakh: nil · 4–8 lakh: 5% · 8–12 lakh: 10% · 12–16 lakh: 15% · 16–20 lakh: 20% · 20–24 lakh: 25% · above 24 lakh: 30%

Salaried people deduct a ₹75,000 standard deduction first. Taxable income up to ₹12 lakh gets a rebate of up to ₹60,000 under Section 156 (formerly 87A), which removes the tax entirely.

Old regime slabs, below 60

0–2.5 lakh: nil · 2.5–5 lakh: 5% · 5–10 lakh: 20% · above 10 lakh: 30%

The nil band is ₹3 lakh for those aged 60 to 79 and ₹5 lakh for those 80 and over. The standard deduction is ₹50,000, and taxable income up to ₹5 lakh gets a rebate of up to ₹12,500.

From slab tax to total tax

Total = (slab tax − rebate + surcharge) × 1.04

Surcharge is 10% above ₹50 lakh, 15% above ₹1 crore and 25% above ₹2 crore; the old regime adds 37% above ₹5 crore, while the new regime stops at 25%. The 4% health and education cess is charged on the tax and surcharge together.

Worked examples

₹15 lakh salary, new regime

  1. Taxable: 15,00,000 − 75,000 = ₹14,25,000
  2. Slab tax: 20,000 + 40,000 + 15% of 2,25,000 (33,750) = ₹93,750
  3. Cess: 4% of 93,750 = ₹3,750

₹97,500 of tax.

The same salary, old regime, with ₹1.5 lakh Section 123 and ₹25,000 health insurance

  1. Taxable: 15,00,000 − 50,000 − 1,50,000 − 25,000 = ₹12,75,000
  2. Slab tax: 12,500 + 1,00,000 + 30% of 2,75,000 (82,500) = ₹1,95,000
  3. Cess: 4% = ₹7,800

₹2,02,800 — ₹1,05,300 more than the new regime for these figures.

₹12.75 lakh salary, new regime

  1. Taxable: 12,75,000 − 75,000 = ₹12,00,000
  2. Slab tax ₹60,000, fully covered by the ₹60,000 rebate

No tax at all.

Notes and limitations

  • The figures follow the Income-tax Act, 2025 as it applies to tax year 2026-27, with rates unchanged by the 2026 Budget. Check the Income Tax Department's website if a later Budget or amendment has changed them.
  • Just above ₹12 lakh of taxable income the new regime gives marginal relief: the tax cannot exceed the income above ₹12 lakh. Cess is charged on the tax left after that relief; some calculators apply the cap after cess and show a figure up to a few hundred rupees lower.
  • Capital gains taxed at special rates, such as on shares and equity funds, are not handled, and the Section 156 rebate does not apply to them. Leave them out, and treat the result as the tax on your other income.
  • Only the main old-regime deductions are listed. The employer's NPS contribution, which is deductible under both regimes, and rarer deductions are not included.
  • This is an estimate for planning. Your employer's TDS and your return are the figures that count.

Frequently asked questions

Which is better — the old or the new tax regime?

It depends on your deductions. The new regime has lower rates and a larger rebate but almost no deductions; the old regime has higher rates but lets you subtract investments, HRA and home-loan interest. Enter your own figures above — the regime with the lower tax is highlighted.

Is income up to ₹12 lakh really tax-free?

Under the new regime, yes, if the ₹12 lakh is taxable income from sources other than special-rate capital gains. For a salaried person that means a salary of up to ₹12.75 lakh, because the ₹75,000 standard deduction comes off first.

Can I switch between the regimes?

The new regime is the default. Salaried people without business income can choose either regime every year when filing their return. People with business or professional income can switch back from the old regime only once.

What is the tax year?

From 1 April 2026 the Income-tax Act, 2025 uses a single “tax year” in place of the old “financial year” and “assessment year”. Tax year 2026-27 runs from 1 April 2026 to 31 March 2027.

What happened to Section 80C and 87A?

They were renumbered in the new Act, not removed. The ₹1.5 lakh investment deduction is now Section 123 and the rebate is Section 156. The rules behind them are the same.

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