This calculator works out your income tax for tax year 2026-27 (FY 2026-27) under both regimes and tells you which one saves more.
Income Tax Calculator (Old vs New Regime)
Compare your income tax under the old and new regimes side by side, including rebate, surcharge and 4% cess, and see which regime saves you more.
- Tax – new regime
- ₹97,500
- Tax – old regime
- ₹2,02,800₹2.03 lakh
- Effective rate – new
- 6.50%
- Effective rate – old
- 13.52%
Results are estimates for educational purposes only and are not financial, tax or legal advice. For more details, do consult a lawyer or a subject-matter expert.
Side-by-side working
| Item | Old regime | New regime |
|---|---|---|
| Gross income | ₹15,00,000 | ₹15,00,000 |
| Total deductions | ₹2,25,000 | ₹75,000 |
| Taxable income | ₹12,75,000 | ₹14,25,000 |
| Tax on slabs | ₹1,95,000 | ₹93,750 |
| Rebate u/s 87A | ₹0 | ₹0 |
| Surcharge | ₹0 | ₹0 |
| Health & education cess | ₹7,800 | ₹3,750 |
| Total tax payable | ₹2,02,800 | ₹97,500 |
Explain this result
We work out tax for FY 2026-27 under both regimes.
New regime: gross income ₹15,00,000 minus the standard deduction (and employer NPS) gives taxable income of ₹14,25,000. Tax on the slabs is ₹93,750; the Section 87A rebate removes ₹0; surcharge is ₹0; 4% cess is ₹3,750. Total: ₹97,500.
Old regime: deductions of ₹2,25,000 (standard deduction, HRA, 80C, 80D, 24(b), NPS…) leave taxable income of ₹12,75,000. Slab tax ₹1,95,000, rebate ₹0, surcharge ₹0, cess ₹7,800. Total: ₹2,02,800.
Formula: Tax = (slab tax − rebate + surcharge) × 1.04, with income and tax rounded to the nearest ₹10. Marginal relief is applied just above the rebate and surcharge limits.
Frequently asked questions
Which tax regime is better for me?
The new regime has lower slab rates and a bigger rebate but almost no deductions. The old regime can work out cheaper if you claim large deductions such as HRA, 80C, 80D and home loan interest. This calculator compares both using your numbers.
Is income up to ₹12 lakh tax-free in the new regime?
Under the rules configured on this site, the Section 87A rebate makes tax nil when taxable income is up to ₹12 lakh in the new regime. Salaried people also get a standard deduction, so the tax-free salary is higher. Special-rate income such as capital gains does not get this rebate.
Can I switch regimes every year?
Salaried individuals without business income can generally choose a regime each year when filing their return. People with business income have limited switching options.
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Worked example: ₹15 lakh salary
| New regime | Old regime | |
|---|---|---|
| Gross salary | ₹15,00,000 | ₹15,00,000 |
| Standard deduction | ₹75,000 | ₹50,000 |
| Section 123 (old 80C) + health insurance (old 80D) | Not allowed | ₹1,75,000 |
| Taxable income | ₹14,25,000 | ₹12,75,000 |
| Tax + 4% cess | ₹97,500 | ₹2,02,800 |
Here the new regime saves about ₹1,05,300. The old regime wins only when deductions (HRA, home loan interest, Section 123/old 80C, health insurance, NPS) are large.
How to use it
- Choose the tax year and your age group.
- Enter gross salary and any other income.
- Fill in deductions you actually claim – leave the rest at zero.
- Compare the two columns and the “better regime” result.
Good to know
- From 1 April 2026 the Income-tax Act, 2025 applies. It uses “tax year” in place of “previous year” and “assessment year”. The new regime is now Section 202 (old 115BAC) and the ₹1.5 lakh deduction is Section 123 (old 80C). Returns for 2025-26 still follow the 1961 Act.
- Under the new regime, a rebate makes tax nil for total income up to ₹12 lakh (₹12.75 lakh for salaried people after the standard deduction), with marginal relief just above.
- Salaried people can choose a regime each year; those with business income have limited switches.
- Exempt HRA? Work it out first with the HRA calculator.
Related guides
Next steps
See your monthly take-home with the salary calculator. Received a notice? Read our income tax notice guide.