New Regime
Old Regime
About this calculator
This income tax calculator uses the latest slabs for FY 2025-26 (AY 2026-27). Enter your gross income, tick whether you are salaried, and optionally add your deductions. It computes tax under both the old and new regime — including the 4% health & education cess and the Section 87A rebate — and highlights the regime that costs you less.
New regime slabs (FY 2025-26)
₹0–4L: Nil · ₹4–8L: 5% · ₹8–12L: 10% · ₹12–16L: 15% · ₹16–20L: 20% · ₹20–24L: 25% · Above ₹24L: 30%. Standard deduction ₹75,000. Taxable income up to ₹12L pays zero tax (rebate).
Which regime should you choose?
Not sure? Just enter your income above and this tool picks the cheaper one. Here's the simple logic behind it:
You don't have big tax-saving investments, no home loan, and you want zero paperwork. Slab rates are lower and taxable income up to ₹12 lakh pays no tax at all. This suits most salaried people who don't invest much.
You claim large deductions — a home loan (interest up to ₹2L), rent/HRA, the full ₹1.5L under 80C (PF, PPF, ELSS, LIC, tuition), and health insurance under 80D. When these add up high enough, the old regime can beat the new one. Tick "I have deductions" above to compare.
Rent receipts & landlord PAN (for HRA), 80C investment proofs (PPF/ELSS/LIC statements), home loan interest certificate from your bank, and health insurance premium receipts. Without proof, these deductions can be disallowed when you file your return.
FAQs
Which tax regime is better for me?
It depends on your deductions. If your 80C, 80D, HRA and home loan claims are large, the old regime can win. With few or no deductions, the new regime is usually cheaper. This tool checks both and marks the better one.
Is income up to ₹12 lakh really tax free?
Under the new regime for FY 2025-26, taxable income up to ₹12 lakh has zero tax thanks to the Section 87A rebate. For salaried people, the ₹75,000 standard deduction lifts this to about ₹12.75 lakh of gross salary.
What is the standard deduction this year?
₹75,000 for salaried individuals in the new regime, and ₹50,000 in the old regime.
Does this include surcharge and cess?
Yes, a 4% health & education cess is always added. Surcharge applies only above ₹50 lakh income and is included; for very high incomes, marginal relief may slightly adjust the final figure, so treat those as estimates.