Income Tax Calculator: Old vs New Regime
Compare your tax under the old and new regimes, side by side.
Your files stay on your device
New regime
Lower slabs, almost no deductions
Total tax payable
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- Deductions and standard deduction
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- Taxable income
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- Tax on slabs
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- Rebate u/s 87A
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- Surcharge
- -
- Health and education cess
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Old regime
Higher slabs, deductions allowed
Total tax payable
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-
- Deductions and standard deduction
- -
- Taxable income
- -
- Tax on slabs
- -
- Rebate u/s 87A
- -
- Surcharge
- -
- Health and education cess
- -
How to use Income Tax Calculator
- Check the financial year at the top. Slabs change every year, and the tool says which rules it is using.
- Enter your gross yearly income, before any deductions.
- Set your age group, and tick the box if you are salaried or drawing a pension.
- Fill in your deductions: 80C, health insurance, home loan interest, HRA. These only cut your tax under the old regime.
- Compare the two cards. The better regime is highlighted, with the amount it saves you.
Which rules this uses
The financial year selector at the top says exactly which year's slabs are being applied, and the line beneath it names the Finance Act they come from. Tax rules change with every budget, so check the year before you trust a number. Confirm anything that matters against the Income Tax Department's own portal.
How the two regimes differ
The new regime gives you wider, lower slabs but almost nothing to deduct. The old regime charges more on the same income, but lets you subtract 80C investments, health insurance, home loan interest, HRA and the rest first. Which one wins depends on how much you actually claim.
The rough rule: the more you invest and claim, the better the old regime looks. With modest deductions, no home loan and no large 80C, the new regime almost always wins. The calculator settles it for your own figures.
What is applied, in order
- Standard deduction, if you are salaried or drawing a pension.
- Your employer's NPS contribution under 80CCD(2), allowed in both regimes.
- Chapter VI-A deductions and home loan interest, old regime only, each capped.
- Tax on the slabs for your age group.
- The section 87A rebate, with the marginal relief that stops income just over the threshold from costing more in tax than it added in income.
- Surcharge on higher incomes, with its own marginal relief at each threshold.
- Health and education cess on the total.
What is not included
- Capital gains, which are taxed at their own rates, and lottery or crypto income, which carry flat rates.
- Relief under section 89 for arrears, foreign tax credits, and clubbing or set-off of losses.
- The detailed HRA working. Enter the exempt portion you have already worked out, not your full allowance.
- Advance tax instalments and TDS already deducted. The figure shown is your liability for the year, not what is still outstanding.
This is a comparison tool, not a filing tool, and not tax advice. See the disclaimer.
Frequently asked questions
Which regime should I choose?
Whichever costs less for your own numbers, which is what the two cards show. The more you actually claim in deductions, the better the old regime looks. With few deductions the new regime almost always wins.
Does the new regime really mean no tax up to Rs 12.75 lakh?
For a salaried person in FY 2025-26, yes. The Rs 75,000 standard deduction brings a Rs 12.75 lakh salary down to Rs 12 lakh of taxable income, and the section 87A rebate wipes out the tax on that.
What is marginal relief?
A rule that stops crossing a threshold from costing you more in tax than the extra income you earned. It applies to the 87A rebate in the new regime and to surcharge at each threshold, and this calculator applies both.
Can I claim 80C under the new regime?
No. The new regime trades deductions for lower rates, so 80C, 80D, HRA and home loan interest on a self-occupied property all go. Your employer NPS contribution under 80CCD(2) survives in both, so it has its own field here.
Why is my employer figure different?
Payroll takes into account TDS already deducted, the declarations you submitted, perquisites and arrears relief. This tool works out your liability for the year from what you typed, not what is still outstanding.
Can I file my return with this?
No, it is a comparison tool. Capital gains, business income, foreign income, loss set-offs and section 89 relief are all outside it. File through the Income Tax Department portal or with a professional.