Rules for FY 2026-27 and FY 2025-26 (same rules)
- New regime
- ₹97,500
- Old regime
- ₹2,10,600
- New regime saves
- ₹1,13,100
| New regime | Old regime | |
|---|---|---|
| Taxable income | ₹14,25,000 | ₹13,00,000 |
| Tax on slabs | ₹93,750 | ₹2,02,500 |
| Rebate / relief | ₹0 | ₹0 |
| Surcharge | ₹0 | ₹0 |
| Health & education cess (4%) | ₹3,750 | ₹8,100 |
| Total tax for the year | ₹97,500 | ₹2,10,600 |
| Per month | ₹8,125 | ₹17,550 |
Standard deduction applied: ₹75,000 (new) and ₹50,000 (old). An estimate for ordinary income. Capital gains, special-rate income and some exemptions are not included.
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Please note: this calculator is a free aid for working out numbers, not financial, tax or investment advice. It has not been prepared or checked by a chartered accountant or financial adviser, and results may be inaccurate for your situation. Check important decisions with a qualified professional.
How to use Income Tax Calculator (India)
- Enter your total yearly income before tax and choose salaried/pension or business/other income.
- Pick your age group, and add the deductions you can claim under the old regime (80C, 80D, HRA, home-loan interest and so on).
- Compare the two totals; the calculator shows which regime costs less and by how much.
How the two regimes work in FY 2026-27
New regime (the default): no tax 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 that. Salaried people get a ₹75,000 standard deduction. A rebate of up to ₹60,000 means no tax at all when taxable income is ₹12 lakh or less, so a salary of up to ₹12.75 lakh is effectively tax-free. Just above ₹12 lakh, marginal relief caps the tax at the income above ₹12 lakh.
Old regime: for people under 60, no tax up to ₹2.5 lakh, 5% to ₹5 lakh, 20% to ₹10 lakh and 30% above that (the tax-free limit is ₹3 lakh from age 60 and ₹5 lakh from 80). The standard deduction is ₹50,000, a rebate removes the tax when taxable income is ₹5 lakh or less, and most deductions such as 80C, 80D, HRA and home-loan interest are allowed.
In both regimes a 4% health and education cess is added, and a surcharge applies above ₹50 lakh of income, with marginal relief so crossing a threshold never costs more than the extra income.
Worked example
A salary of ₹15,00,000 with ₹1,50,000 of 80C investments. New regime: taxable income ₹14,25,000, tax ₹93,750 plus cess, ₹97,500 in total. Old regime: taxable income ₹13,00,000 after the standard deduction and 80C, tax ₹2,02,500 plus cess, ₹2,10,600 in total. The new regime saves about ₹1,13,100.
The old regime only wins when deductions are large. At the same salary, even ₹4,50,000 of deductions (80C, health insurance, HRA and home-loan interest together) still leaves the old regime at ₹1,17,000, higher than ₹97,500.
Frequently asked questions
Which year's rules does this use?
The rates introduced by Budget 2025 for FY 2025-26, which Budget 2026 kept unchanged for FY 2026-27. From 1 April 2026 the new Income-tax Act, 2025 renumbers some sections (the 87A rebate becomes section 156), but the amounts are the same. Rules can change with each budget, so check the year shown above the calculator.
Can I rely on this result when filing my return?
Treat it as a helpful estimate only. It has not been prepared or checked by a chartered accountant and may be inaccurate for your situation. Confirm with a qualified professional or the Income Tax Department's official tools before filing.
Is capital gains tax included?
No. Gains on shares, mutual funds and property are taxed at special rates and are left out. The calculator covers ordinary income such as salary, pension, business income and interest.
Can I switch between the regimes?
Salaried individuals can usually choose each year when filing the return. People with business income have more limited switching. Confirm your situation with a tax professional.
Why is my employer's TDS different?
TDS is spread across the year and depends on the declarations you made at work. The final tax is settled when you file your return, which this estimate is designed to help with.