Since the new tax regime became the default, most salaried taxpayers in India need to actively compare it against the old regime to see which results in lower tax, since the two use very different slab structures and the old regime’s benefit depends heavily on how many deductions you actually claim.
Enter your annual gross income and, if relevant, your total deductions under the old regime (Section 80C investments, 80D health insurance, HRA exemption and similar), to compare estimated tax payable under both regimes for FY 2025-26 (AY 2026-27).
Income Tax Calculator
Compare tax payable under the new vs old regime for FY 2025-26 (AY 2026-27).
New regime slabs (FY 2025-26): nil up to ₹4L, 5% (4-8L), 10% (8-12L), 15% (12-16L), 20% (16-20L), 25% (20-24L), 30% above ₹24L, with ₹75,000 standard deduction and ₹60,000 rebate under 87A (zero tax up to ₹12L taxable income). Old regime: nil up to ₹2.5L, 5% (2.5-5L), 20% (5-10L), 30% above ₹10L, with ₹50,000 standard deduction and 87A rebate up to ₹5L income. 4% health & education cess applies on tax in both regimes. Excludes surcharge; for individuals below 60, illustrative only — not tax advice.
New tax regime slabs (FY 2025-26)
Nil up to ₹4 lakh, 5% from ₹4-8 lakh, 10% from ₹8-12 lakh, 15% from ₹12-16 lakh, 20% from ₹16-20 lakh, 25% from ₹20-24 lakh, and 30% above ₹24 lakh. A standard deduction of ₹75,000 applies to salaried taxpayers, and a Section 87A rebate of up to ₹60,000 makes tax effectively nil for taxable income up to ₹12 lakh (around ₹12.75 lakh gross salary after the standard deduction).
Old tax regime slabs
Nil up to ₹2.5 lakh, 5% from ₹2.5-5 lakh, 20% from ₹5-10 lakh, and 30% above ₹10 lakh, with a ₹50,000 standard deduction for salaried taxpayers and Section 87A rebate making tax nil up to ₹5 lakh income. The old regime allows deductions like Section 80C (up to ₹1.5 lakh), 80D health insurance premium, and HRA exemption, which can make it more beneficial for taxpayers who claim substantial deductions.
Which regime should you choose?
If you claim few deductions, the new regime’s lower slab rates usually work out cheaper. If you have significant deductions — a home loan, substantial 80C investments, HRA, and health insurance — the old regime can still come out ahead. This calculator compares both so you can see which applies to your numbers, but a 4% health and education cess is added to tax in both regimes, and this tool doesn’t include surcharge for very high incomes.
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Frequently asked questions
Is the new tax regime automatically applied?
Yes, the new tax regime is the default option since FY 2023-24. You need to explicitly opt for the old regime, typically by informing your employer or while filing your return, if it works out better for you.
Can I switch between regimes every year?
Salaried individuals without business income can choose either regime each financial year when filing their return. Those with business or professional income face restrictions on switching back and forth.
Does this calculator include surcharge for high income?
No, this tool calculates tax plus the standard 4% health and education cess only. Surcharge, which applies to taxable income above ₹50 lakh, is not included and would increase the tax payable for very high earners.
What deductions are not available in the new regime?
Most common deductions — Section 80C, 80D, HRA exemption, and most others — are not available under the new regime, aside from a few exceptions like the employer’s NPS contribution and the standard deduction.