How this income tax calculator works
India has two income tax regimes for individuals. The new regime (the default) has lower slab rates but allows almost no deductions. The old regime has higher rates but lets you reduce taxable income with deductions like HRA, Section 80C investments, health insurance and home loan interest. This calculator works out your tax under both, side by side, including the Section 87A rebate, marginal relief, surcharge and the 4% health & education cess, so you can pick the cheaper option.
How to use it
- Select the financial year and your age group (seniors get a higher exemption limit in the old regime).
- Enter your gross annual salary (before standard deduction) and any other income such as savings interest or rent.
- Open Deductions and enter what you can claim in the old regime. Caps are applied automatically.
- Compare the two totals. The green box tells you which regime saves more and by how much.
Tax slabs at a glance
| New regime (taxable income) | Rate |
|---|---|
| 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% |
Old regime (below 60): nil up to ₹2.5 lakh, 5% up to ₹5 lakh, 20% up to ₹10 lakh and 30% above. The basic exemption is ₹3 lakh for seniors and ₹5 lakh for those 80 and over. The old regime's rebate makes tax nil up to ₹5 lakh of taxable income.
Example
With a salary of ₹15 lakh under the new regime: taxable income is ₹14.25 lakh after the ₹75,000 standard deduction. Tax = ₹20,000 (5% of ₹4–8L) + ₹40,000 (10% of ₹8–12L) + ₹33,750 (15% of ₹2.25L) = ₹93,750, plus 4% cess = ₹97,500. In the old regime, the same person would need more than about ₹5.9 lakh of total deductions (including the ₹50,000 standard deduction) before paying less tax.
Rules last reviewed: October 2026. Slab rates shown are as announced in the Union Budget; always confirm with the Income Tax Department or a chartered accountant before filing.
Disclaimer: Results are estimates for educational purposes only and are not financial, investment or tax advice. Please verify with your bank, broker or a SEBI-registered adviser before acting. Read the full disclaimer.