Quick summary: Figuring out your income tax can feel confusing, with two different tax regimes, several slabs, and various deductions to consider. This calculator does the maths for you. Just enter your income and a few basic details, and it shows you your tax under both the old and new tax regime, so you can see which one saves you more money.
Free Income Tax Calculator
Income Tax Calculator
New vs Old Regime · FY 2025-26 (AY 2026-27)
Fill these only if you want to check the old regime. Leave blank / 0 to skip. The new regime does not allow most of these.
New Regime
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This is an estimate for FY 2025-26 (AY 2026-27) for resident individuals, including 4% cess and, where it applies, surcharge. It is for information only, not tax advice. Please confirm with a tax professional before filing.
How to Use This Calculator
- Enter your total annual income. Include your salary, plus any other income like rent, interest, or freelance earnings.
- Enter your deductions, if you plan to use the old tax regime. This includes things like Section 80C investments (PPF, ELSS, life insurance), health insurance premiums under Section 80D, and home loan interest.
- Select your age category. Tax slabs are slightly different for senior citizens (60 and above) and super senior citizens (80 and above) under the old regime.
- Click calculate. The calculator instantly shows your tax under both the old and new regime, side by side, so you can compare and choose.
What Is the Difference Between the Old and New Tax Regime?
India currently has two ways to calculate your income tax, and this is exactly why a calculator like this is useful, since comparing them manually takes time.
The new tax regime is now the default option for everyone. It offers lower tax rates, but you cannot claim most deductions and exemptions, like Section 80C, HRA, or home loan interest.
The old tax regime has higher tax rates, but allows you to reduce your taxable income using deductions like Section 80C (up to ₹1.5 lakh), Section 80D (health insurance), HRA (House Rent Allowance), and home loan interest.
In simple words: if you do not invest much and do not have many deductions to claim, the new regime is usually better for you. If you have significant investments, insurance, or a home loan, the old regime might save you more, but you need to actually calculate both to know for sure. That is exactly what this calculator does for you.
Income Tax Slabs for FY 2025-26 (New Tax Regime)
| Income Range | Tax Rate |
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 to ₹8,00,000 | 5% |
| ₹8,00,001 to ₹12,00,000 | 10% |
| ₹12,00,001 to ₹16,00,000 | 15% |
| ₹16,00,001 to ₹20,00,000 | 20% |
| ₹20,00,001 to ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
A big benefit under the new regime: if your total taxable income is up to ₹12,00,000, you pay zero tax, thanks to a rebate under Section 87A. Salaried individuals also get a standard deduction of ₹75,000, so if your gross salary is up to ₹12,75,000, you may end up paying no tax at all.
Income Tax Slabs for FY 2025-26 (Old Tax Regime)
| Income Range | Tax Rate |
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Under the old regime, if your taxable income (after all deductions) is up to ₹5,00,000, a rebate under Section 87A brings your tax down to zero.
For senior citizens (60 to 79 years) under the old regime, the basic exemption limit is ₹3,00,000. For super senior citizens (80 and above), it is ₹5,00,000.
How Does the Calculator Actually Work Behind the Scenes?
Here is the simplified logic the calculator applies, in the order it happens:
- Start with your gross income (salary plus any other income).
- Subtract the standard deduction (₹75,000 under the new regime, ₹50,000 under the old regime, for salaried individuals and pensioners).
- Subtract any other deductions you are eligible for (only under the old regime, things like Section 80C, 80D, HRA, and home loan interest).
- Apply the relevant slab rates to what remains, this is your taxable income.
- Apply the Section 87A rebate, if your taxable income qualifies (up to ₹12 lakh under the new regime, up to ₹5 lakh under the old regime).
- Add 4% health and education cess on the remaining tax amount.
- Add surcharge, if your income is high enough to attract it, this applies only above ₹50 lakh, with different rates at higher income levels.
The final number you see is your total tax liability for the year, under each regime.
A Simple Example
Let us say your gross salary is ₹12,00,000 a year, and you have ₹1,50,000 in Section 80C investments and ₹25,000 in health insurance premium (Section 80D).
Under the new regime:
- Taxable income: ₹12,00,000 minus ₹75,000 (standard deduction) = ₹11,25,000
- Tax as per slabs, after rebate: Zero tax, since your income falls within the rebate benefit that applies up to ₹12 lakh gross income under the new regime
Under the old regime:
- Taxable income: ₹12,00,000 minus ₹50,000 (standard deduction) minus ₹1,50,000 (80C) minus ₹25,000 (80D) = ₹9,75,000
- Tax as per old slabs: roughly ₹1,01,400 (before cess)
In this example, the new regime clearly saves more money, since the rebate benefit under the new regime is generous enough to offset the lack of deductions. This will not be true for everyone, especially those with a large home loan or bigger 80C investments, which is exactly why running your own numbers through the calculator matters.
Who Should Use This Calculator?
- Salaried employees deciding which regime to choose at the start of the financial year, or before filing their ITR
- Freelancers and self-employed individuals estimating their tax liability to plan advance tax payments
- Anyone comparing a job offer, to understand their real take-home pay after tax
- People with a home loan or heavy investments, trying to see if the old regime’s deductions are worth more than the new regime’s lower rates
Frequently Asked Questions
1. Which tax regime is the default now?
The new tax regime is the default option. If you want to use the old regime instead, you need to actively choose it while filing your return, or inform your employer, if salaried.
2. Can I switch between the old and new regime every year?
If you are a salaried individual with no business income, yes, you can choose either regime every year when filing your ITR. If you have business or professional income, switching back to the old regime after opting for the new one has some restrictions, so check with a tax professional if this applies to you.
3. Does the calculator include cess and surcharge?
Yes, this calculator factors in the standard 4% health and education cess, and applies surcharge automatically if your income crosses the relevant thresholds.
4. Is this calculator accurate for senior citizens?
Yes, select the appropriate age category, senior citizen or super senior citizen, in the calculator, and it will apply the correct, higher basic exemption limit under the old regime.
5. Does this calculator account for capital gains or other special income?
This calculator is designed for regular income like salary, interest, and standard deductions. Capital gains from shares, mutual funds, or property are taxed under separate, specific rules and are not included in this basic calculation.
6. I do not have any 80C or 80D investments. Which regime should I pick?
If you have little or no deductions to claim, the new tax regime is very likely to be more beneficial for you, given its lower slab rates and the ₹12 lakh rebate threshold. Still, it is worth running your exact numbers through the calculator to confirm.
Key Takeaways
- This calculator shows your tax under both the old and new tax regime, so you can compare and pick the better option for your situation.
- The new tax regime has lower rates and a rebate up to ₹12 lakh taxable income, but does not allow most deductions.
- The old tax regime has higher rates but allows deductions like Section 80C, 80D, HRA, and home loan interest.
- Standard deduction is ₹75,000 under the new regime and ₹50,000 under the old regime for salaried individuals and pensioners.
- If you have few investments or deductions, the new regime usually works out better. If you have a home loan or heavy 80C/80D investments, the old regime may still win, but only actual numbers can confirm this.
Sources: Income Tax Department, Government of India: Income Tax Slabs; Finance Act, 2025: Revised Income Tax Slabs and Rebate Limits for FY 2025-26.
This calculator is for general estimation purposes only and does not constitute tax advice. For guidance specific to your situation, consult a Chartered Accountant.
