About the Old vs New Regime
Since FY 2023-24 the new tax regime is the default; the old regime remains available to anyone who wants its deductions. For FY 2025-26 the new regime has seven slabs from 0 % to 30 %, a standard deduction of ₹75,000 for salaried taxpayers and a rebate that wipes out tax on total income up to ₹12 lakh, with marginal relief just above it. The old regime keeps the 2.5 / 5 / 10 lakh slabs, the ₹50,000 standard deduction and every deduction — 80C, 80D, HRA, home-loan interest and the rest.
This calculator computes both. Enter your gross income and, for the old regime, the deductions you can claim; it returns the taxable income, the slab tax, the rebate, the cess and the total for each regime, and names the one that costs less. Senior-citizen slabs apply in the old regime when you enter your age.
The slabs and limits are those in force on the date printed under the tool. Surcharge above ₹50 lakh, special-rate incomes (capital gains, lottery) and the AMT are not modelled — use the result as a planning estimate and confirm on the income-tax portal's calculator before filing.
How to use it
- 1Enter your gross annual income (salary, business income, other income).
- 2For the old regime, enter your 80C, 80D, HRA exemption, home-loan interest and other deductions.
- 3Enter your age if you are a senior citizen.
- 4Compare the total tax under both regimes and see which is lower.
How this is calculated
Taxable income = gross − standard deduction − deductions (old regime only) Slab tax = Σ (income in slab × slab rate) Rebate (s.87A): full tax rebated when taxable income ≤ the limit (₹12 lakh new / ₹5 lakh old), with marginal relief just above the new-regime limit Cess = 4 % of tax after rebate; total = tax + cess
Rates used
- Standard deduction — new regime75,000 ₹ · Income-tax Act s.16(ia) · verified 2026-09-25 · owner to confirm
- Standard deduction — old regime50,000 ₹ · Income-tax Act s.16(ia) · verified 2026-09-25 · owner to confirm
- Rebate 87A income limit — new regime12,00,000 ₹ total income · Finance Act 2025 · verified 2026-09-25 · owner to confirm
- Rebate 87A income limit — old regime5,00,000 ₹ total income · Income-tax Act s.87A · verified 2026-09-25 · owner to confirm
- Health and education cess4 % of tax · Finance Act · verified 2026-09-25 · owner to confirm
Frequently asked questions
Which regime should I choose?
The one with the lower total — the calculator tells you. Broadly, the new regime wins unless your deductions (80C, HRA, home-loan interest, 80D) add up to well over ₹3–4 lakh. Salaried taxpayers can switch every year; those with business income can switch back to the old regime only once.
Is income up to ₹12 lakh really tax-free?
Under the new regime for FY 2025-26, yes for most taxpayers: the rebate under section 87A cancels the tax on taxable income up to ₹12 lakh (₹12.75 lakh of salary after the standard deduction). Special-rate incomes such as capital gains are outside the rebate.
What is marginal relief?
Just above the rebate limit the tax must not exceed the income above the limit. Someone with taxable income of ₹12,10,000 pays at most ₹10,000 (plus cess), not the full slab tax. The calculator applies it.
Does this include surcharge?
No. Surcharge applies above ₹50 lakh of total income and is not modelled here; nor are special rates on capital gains or the alternate minimum tax. Confirm large-income cases with a tax adviser.