Income tax calculator: old vs new regime
Which tax regime should I pick this year, and what will I pay?
₹1,63,051 less than the old regime. Take-home about ₹1,00,000 a month after tax.
- Deductions used
- ₹75,000
- Taxable income
- ₹11,25,000
- 87A rebate
- −₹52,500
- Cess
- ₹0
- Effective rate
- 0%
Slab by slab
| 0% up to ₹4 L | ₹4,00,000 | ₹0 |
| 5% up to ₹8 L | ₹4,00,000 | ₹20,000 |
| 10% up to ₹12 L | ₹3,25,000 | ₹32,500 |
- Deductions used
- ₹52,400
- Taxable income
- ₹11,47,600
- Cess
- ₹6,271
- Effective rate
- 13.6%
Slab by slab
| 0% up to ₹3 L | ₹2,50,000 | ₹0 |
| 5% up to ₹5 L | ₹2,50,000 | ₹12,500 |
| 20% up to ₹10 L | ₹5,00,000 | ₹1,00,000 |
| 30% above | ₹1,47,600 | ₹44,280 |
How this is calculated
Rules checked against their sources on 29 September 2026. Tax year FY2026-27.
Two regimes, one choice a year
Since 2020 every individual chooses between the new regime, with lower slab rates and almost no deductions, and the old regime, with higher rates and the familiar deductions: HRA, home-loan interest, 80C, 80D, NPS. The new regime is the default; salaried taxpayers can switch every year at filing, and those with business income can switch back only once.
For FY2026-27 (the tax year under the Income Tax Act 2025 that took effect on 1 April 2026), the new regime is nil up to ₹12 lakh of taxable income through the Section 87A rebate, which with the ₹75,000 standard deduction means a salary of ₹12.75 lakh pays no tax. Above that the slabs run 5%, 10%, 15%, 20%, 25% and 30% in ₹4 lakh steps to ₹24 lakh. The old regime keeps 5% above ₹2.5 lakh, 20% above ₹5 lakh and 30% above ₹10 lakh.
Where the break-even sits
Because the new regime's rates are lower, the old regime only wins when your deductions are large. The size of that hurdle depends on income: at ₹15 lakh you need roughly ₹4 lakh of deductions before the old regime is cheaper, and at ₹25 lakh about ₹5.5 lakh. This calculator solves for the exact figure for your numbers and shows it as "deductions needed". HRA on a high city rent and home-loan interest are the two deductions big enough to get most people there; 80C alone rarely is.
What still works in the new regime
Three things survive: the ₹75,000 standard deduction on salary, the employer's NPS contribution under Section 80CCD(2) (up to 14% of basic and DA), and the family-pension deduction. Employer NPS is the one lever worth negotiating into a salary structure whichever regime you use.
The mistakes to avoid
Comparing slab rates instead of tax. The regime with the lower rate on your top rupee is not always the one with the lower bill. Compare the total.
Forgetting cess and surcharge. Health and education cess adds 4% to the tax under both regimes, and income above ₹50 lakh attracts a surcharge with marginal relief.
Locking in investments for a deduction you will not use. If the new regime wins, an 80C lock-in bought "to save tax" saves nothing. Invest for the goal, not the deduction.
How this fits a retirement plan
Tax is the largest single expense most salaried people never see. A retirement plan computes it every year of your life under both regimes, because the answer changes: deductions fade when the home loan ends, and the old regime's senior-citizen slabs matter after 60. The projection on this site does that for you automatically.
Questions people ask
- Which regime is the default?
- The new regime. If you do nothing, your employer deducts TDS under it and your return is filed under it. To use the old regime you opt in each year at filing (salaried), or file Form 10-IEA (business income).
- Is income up to ₹12 lakh really tax-free?
- Taxable income up to ₹12 lakh under the new regime pays no tax because the Section 87A rebate cancels the tax due. Salaried taxpayers add the ₹75,000 standard deduction, so a ₹12.75 lakh salary is tax-free. Cross the line and marginal relief keeps the tax from exceeding the income above it. Capital gains taxed at special rates do not get the rebate.
- Does HRA work in the new regime?
- No. HRA, LTA, home-loan interest on a self-occupied home, professional tax and all of Chapter VI-A (80C, 80D, 80E, 80G, 80TTA) are old-regime only. The employer's NPS contribution under 80CCD(2) and the standard deduction are the exceptions that work in both.
- How is HRA exemption calculated?
- The least of three: HRA received, rent paid minus 10% of basic and DA, and 50% of basic and DA in Delhi, Mumbai, Kolkata or Chennai (40% elsewhere). It needs rent receipts, and the landlord's PAN when rent exceeds ₹1 lakh a year.
- What about surcharge?
- Income above ₹50 lakh attracts a 10% surcharge on the tax, rising to 15% above ₹1 crore and 25% above ₹2 crore (37% above ₹5 crore in the old regime only). Marginal relief ensures the extra tax never exceeds the income above the threshold. This calculator applies it.
Want the whole picture?
A free Eazyretire plan puts this number next to your income, savings and spending and tells you whether your money lasts to the age you plan for, and what to change if it will not.