Z

Income Tax Calculator India (Old vs New Regime)

Compare income tax under the old and new regimes for FY 2025-26 with rebate and cess.

Runs in your browser — files never leave your device

New regime

Total tax
₹0
Effective rate
0%

Old regime

Total tax
₹1,17,000
Effective rate
9.75%
Better for you
New regime

Illustrative FY 2025-26 slabs (unchanged for FY 2026-27) with §87A rebate + 4% cess. Estimate only — not tax advice.

How it works

This calculator compares your income tax under India’s two personal-tax regimes side by side, using FY 2025-26 (AY 2026-27) rules — which Budget 2026 kept unchanged for FY 2026-27. Enter your gross annual income and, for the old regime, your total deductions; it computes total tax including cess and the effective tax rate (tax as a share of gross income) for each regime, then tells you which one leaves you better off.

Both regimes follow the same pipeline: subtract deductions to get taxable income, apply the slab rates, zero the tax via the §87A rebate if you qualify, then add 4% health and education cess. In the new regime the tool subtracts a ₹75,000 standard deduction (the FY 2025-26 salaried rate) and ignores everything else; the rebate applies when taxable income is ₹12 lakh or less — making salary income up to about ₹12.75 lakh tax-free — and marginal relief caps the tax just above that threshold. In the old regime it subtracts ₹50,000 plus the deductions you enter (80C, 80D, HRA, home-loan interest and the like), with the rebate up to ₹5 lakh and no marginal relief. The slab rates it applies:

Taxable incomeNew regimeOld regime
Up to ₹2.5 lakhNilNil
₹2.5–4 lakhNil5%
₹4–5 lakh5%5%
₹5–8 lakh5%20%
₹8–10 lakh10%20%
₹10–12 lakh10%30%
₹12–16 lakh15%30%
₹16–20 lakh20%30%
₹20–24 lakh25%30%
Above ₹24 lakh30%30%

Worked example with the defaults — gross income ₹12,00,000 and ₹1,50,000 of old-regime deductions. New regime: taxable income is 12,00,000 − 75,000 = ₹11,25,000, at or below the ₹12 lakh rebate threshold, so §87A cancels the slab tax entirely and total tax is ₹0. Old regime: taxable income is 12,00,000 − 50,000 − 1,50,000 = ₹10,00,000; slab tax ₹12,500 + ₹1,00,000 = ₹1,12,500, plus ₹4,500 cess = ₹1,17,000 (9.75%). The new regime wins by ₹1,17,000 — at this income the old regime only catches up once deductions reach about ₹6.5 lakh, where its taxable income also falls to the ₹5 lakh rebate limit.

At higher incomes the new-regime slabs engage. On ₹15,00,000 gross: taxable income ₹14,25,000; slab tax is ₹20,000 (5% of the ₹4–8 lakh band) + ₹40,000 (10% of ₹8–12 lakh) + ₹33,750 (15% of the remaining ₹2.25 lakh) = ₹93,750, plus ₹3,750 cess = ₹97,500 — an effective rate of 6.5%. And just above the rebate cutoff, marginal relief kicks in: on ₹12,85,000 gross (taxable ₹12,10,000) the slab tax of ₹61,500 is capped at ₹10,000 — the excess over ₹12 lakh — so with cess you pay ₹10,400, not ₹63,960.

Note the year: these are FY 2025-26 (AY 2026-27) rules — the slabs Budget 2025 introduced — and Budget 2026 kept them unchanged for FY 2026-27, so the same figures apply to both years. The headline feature is the enlarged §87A rebate: income up to ₹12 lakh (about ₹12.75 lakh for salaried taxpayers, after the standard deduction) is effectively tax-free in the new regime, with marginal relief — modeled here — smoothing the cliff just above it.

Known simplifications: the standard deduction is applied automatically as if you are salaried; surcharge on incomes above ₹50 lakh is not modeled (new-regime marginal relief just above the ₹12 lakh rebate threshold is); the old-regime slabs are the below-60 ones; and special-rate income such as capital gains is out of scope. Treat the output as an estimate for comparing regimes — verify your actual liability on the income-tax portal or with a CA.

Frequently asked questions

Which financial year do these slabs apply to?
FY 2025-26 (AY 2026-27) — and Budget 2026 kept them unchanged for FY 2026-27. New regime: nil up to ₹4 lakh, then 5%, 10%, 15%, 20% and 25% bands up to ₹24 lakh and 30% beyond, with a ₹75,000 standard deduction and a §87A rebate up to ₹12 lakh of taxable income. Old regime: nil to ₹2.5 lakh, 5% to ₹5 lakh, 20% to ₹10 lakh and 30% above, with a ₹50,000 standard deduction and rebate up to ₹5 lakh. Both add 4% health and education cess.
Budget 2025 changed the slabs — does this tool reflect that?
Yes. The calculator now models the FY 2025-26 (AY 2026-27) new-regime slabs introduced by Budget 2025, and Budget 2026 kept them unchanged for FY 2026-27, so the same figures hold for both years. The headline effect: the enlarged §87A rebate makes income up to ₹12 lakh — about ₹12.75 lakh for salaried taxpayers, after the ₹75,000 standard deduction — completely tax-free in the new regime, and the marginal relief that smooths the cliff just above ₹12 lakh is modeled too.
What is the real difference between the old and new regimes?
The old regime keeps higher rates but lets you claim deductions and exemptions — §80C (up to ₹1.5 lakh), §80D health premiums, HRA, home-loan interest and more. The new regime charges lower rates on wider slabs but disallows almost all of those, keeping only the standard deduction. Broadly, the more you genuinely invest in deductible instruments, the more likely the old regime wins — the calculator does the exact comparison for your numbers.
How does the §87A rebate work here?
If your taxable income (after deductions) is at or below ₹12 lakh in the new regime or ₹5 lakh in the old, the rebate cancels the entire slab tax, so total tax is zero. Just above ₹12 lakh the new regime applies marginal relief, which this tool models: base tax is capped at the amount by which taxable income exceeds ₹12 lakh. Earn ₹12,85,000 (taxable ₹12,10,000) and slab tax would be ₹61,500, but relief caps it at ₹10,000, plus 4% cess. The old-regime rebate stays all-or-nothing — one rupee of taxable income over ₹5 lakh and full slab tax applies.
What should I include in the deductions box?
The total of everything you would claim under the old regime: §80C investments (PF, PPF, ELSS, life insurance premiums — capped at ₹1.5 lakh), §80D health insurance, your HRA exemption, home-loan interest under §24(b), NPS under §80CCD and so on. Don’t add the ₹50,000 standard deduction — the tool applies it automatically. Deductions are ignored in the new-regime column, matching the law.
What does this calculator not model?
Surcharge on taxable income above ₹50 lakh, the higher old-regime exemption limits for senior citizens, special-rate income such as capital gains, and the rules restricting how often taxpayers with business income can switch regimes. (New-regime marginal relief just above the ₹12 lakh rebate threshold IS modeled.) If any of these apply to you, treat the output as a starting point only.
Is this tax advice?
No — it is an estimate for comparing regimes under FY 2025-26 rules. Actual liability depends on your income composition, exact deductions and TDS or advance-tax position. Verify with the official calculator on incometax.gov.in or a chartered accountant before filing.

Related tools