Income Tax Calculator: Old vs New Regime

An income tax calculator works out how much tax an individual owes for a financial year from their income and deductions. In India the main question each year is which regime to pick: the new regime, with lower rates and almost no deductions, or the old regime, with higher rates but deductions such as 80C, 80D, HRA and home loan interest.

This calculator runs both side by side for FY 2026-27 or FY 2025-26, applying the standard deduction, the section 87A rebate with marginal relief, surcharge and the 4% cess. It highlights the regime with lower tax, shows the difference and breaks down the tax slab by slab. Every rate comes from one rules file, labelled by year.

New regime: nil up to ₹4 lakh, then 5% to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh, 20% to ₹20 lakh, 25% to ₹24 lakh and 30% above, with a ₹75,000 standard deduction for salary and a rebate of up to ₹60,000 that makes income up to ₹12 lakh tax-free. Old regime: nil up to ₹2.5 lakh (₹3 lakh at 60+, ₹5 lakh at 80+), 5%, 20% and 30% slabs, a ₹50,000 standard deduction and a ₹12,500 rebate up to ₹5 lakh.

Surcharge of 10% to 37% applies above ₹50 lakh (capped at 25% in the new regime), with marginal relief, and a 4% health and education cess applies to the total. Budget 2026 kept the FY 2025-26 rates for FY 2026-27, the first tax year under the Income-tax Act, 2025.