Income Tax Calculator

Old vs New regime · FY 2025-26

Gross Annual Income (₹)

₹12,00,000

Deductions (old regime only)

80C (PF, ELSS, LIC) — max ₹1.5 L

₹

80D Health Insurance (self+family)

₹

HRA + Home Loan Interest (Sec 24)

₹

Other deductions (80E, 80G, NPS 80CCD-1B)

₹

Compare regimes

₹0

Old regime tax

₹0

New regime tax

₹0

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Old vs New regime — full comparison (FY 2025-26 / AY 2026-27)

New regime (default): ₹4 lakh nil, then 5/10/15/20/25/30% slabs plus standard deduction ₹75,000. No need to claim exemptions.

Old regime: ₹3 lakh nil (60 yrs) then slabs, plus standard deduction ₹75,000 and all your 80C/80D/HRA/exemptions stacked on top.

Rule of thumb: if total deductions exceed ~15% of income, old regime often wins. For most salaried folks with home loans + 80C → ₹2-3L deductions means old regime saves more. For those with no investments/HRA — new regime.

Tax slab comparison at a glance

Income slab	New regime	Old regime (<60 yrs)
₹0 – ₹3,00,000	Nil	Nil
₹3,00,001 – ₹4,00,000	Nil	5%
₹4,00,001 – ₹8,00,000	5%	5% (up to ₹6L), then 20%
₹8,00,001 – ₹12,00,000	10%	20% (up to ₹9L), then 30%
₹12,00,001 – ₹16,00,000	15%	30%
₹16,00,001 – ₹20,00,000	20%	30%
₹20,00,001 – ₹24,00,000	25%	30%
Above ₹24,00,000	30%	30%

Both regimes add 4% health & education cess; surcharge applies above ₹50 lakh. Standard deduction: ₹75,000 (salaried, both regimes). Section 87A rebate can make new-regime tax zero up to ₹12L income.

Worked example: which regime is better for a ₹10 lakh salary?

Take a ₹10,00,000 gross salary. Under the new regime, after the ₹75,000 standard deduction, tax is about ₹33,800 including cess. Under the old regime with typical deductions — ₹1.5L under Section 80C, ₹25,000 under 80D and about ₹2.4L of HRA exemption — taxable income falls to roughly ₹5.1L and tax drops to about ₹11,000. With those deductions, the old regime saves roughly ₹23,000. With no deductions beyond the standard one, the old regime tax balloons to about ₹86,000 and the new regime wins by over ₹50,000. For most salaried taxpayers the break-even sits around ₹3–3.5 lakh of total deductions — enter your own figures above to see your exact saving in both regimes.

How this calculator works

Slabs, standard deduction, Section 87A rebate, cess and surcharge follow the Finance Act rules in force for FY 2025-26 (assessment year 2026-27) — the year you file in 2026. The tool computes both regimes side by side from your inputs and highlights the cheaper one. Nothing is uploaded; all maths runs in your browser. For a deeper walkthrough see Income Tax Calculator India: New vs Old Regime Guide.

Frequently asked questions

Which tax regime is the default for FY 2025-26?

The new regime is now the default. If you don't actively choose the old regime in your ITR, the new regime applies. Employees can switch back every year.

Which is better — old or new tax regime for a ₹10 lakh salary?

It depends on your deductions. With ₹3–3.5 lakh or more of total deductions (80C + 80D + HRA + others), the old regime usually saves more; below that, the new regime's lower slabs win. Enter both scenarios in the calculator above for your exact break-even.

How do I calculate income tax in the old regime?

Subtract the standard deduction and all eligible deductions/exemptions (80C, 80D, HRA, LTA) from your gross income, then apply the old-regime slabs (nil to ₹3L, 5% to ₹6L, 20% to ₹9L, 30% above) plus 4% cess. The calculator above does this automatically next to the new-regime figure.

Can I claim 80C, 80D and HRA in the new regime?

No. The new regime allows the standard deduction (₹75,000) as the only major deduction. Chapter VI-A deductions (80C, 80D), HRA, LTA and most exemptions are not available under it.

How much tax on a ₹12 lakh salary in the new regime?

Thanks to the Section 87A rebate, new-regime tax on ₹12 lakh income (after the ₹75,000 standard deduction) works out to zero — the rebate phases out between ₹12L and ₹12.75L. In the old regime the same income without deductions would pay substantially more.

How is 4% cess and surcharge applied?

Health & Education Cess of 4% is added to your income tax in both regimes. Surcharge kicks in for high incomes (10% above ₹50L, 15% above ₹1Cr, etc.) and is capped at 25%/29% under new/old regimes respectively.

Is the ₹12,500 rebate under Sec 87A still available?

Yes — in the new regime FY25-26, income up to ₹12,00,000 (after standard deduction) attracts no tax due to the Sec 87A rebate. The rebate phases out between ₹12L and ₹12,75,000.

Does this calculator handle capital gains, crypto, business income?

No. This tool covers salaried/freelance income at a basic level. Capital gains (stocks, property, crypto @30%) and business income have their own rules — consult a CA for those.