Income Tax Calculator (Old vs New Regime)
Compare what the old and new regimes compute for tax year 2026-27 on a resident, salary-only case, with the effective rate for each.
Old Regime
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New Regime
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Old: After tax
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New: After tax
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How the two regimes differ
The new regime has wider slabs and a larger standard deduction, but almost no deductions. The old regime has narrower slabs and a smaller standard deduction, and pays for itself only if you can actually substantiate enough deductions. Enter your real figures on the left: the arithmetic, not a rule of thumb, decides which is lower for you.
Where the new regime lands at nil
A ₹75,000 standard deduction plus a ₹60,000 section 87A rebate means a resident individual pays nothing up to ₹12 lakh of taxable income — about ₹12.75 lakh of gross salary. Immediately above that, marginal relief caps the tax at the amount by which taxable income exceeds ₹12 lakh, so the bill rises gradually rather than jumping.
This is arithmetic, not a recommendation
The comparison states what each regime computes on the figures entered. It does not verify that your deductions qualify, and it excludes surcharge, special-rate income, capital gains and senior-citizen slabs. Regime selection has consequences this page does not model.
Rule contract
- Method version
ty2026-27-v1- Scope
- Tax year 2026-27 resident, non-senior, salary-only illustration under both regimes.
- Effective from
- 2026-04-01
- Rule as of / review due
- 2026-08-25 / 2027-03-31
- Rule verification state
- verified
- Governing act
- Income-tax Act, 2025 from tax year 2026-27; rates unchanged from the preceding year per the Department's new-Act FAQ
- Rounding
- Calculate in rupees; round only the final tax including cess to the nearest rupee.
Excluded: senior-citizen slabs; surcharge and surcharge marginal relief; special-rate income; capital gains; loss set-off; business/profession option rules; deduction eligibility verification
Official sources checked: Salaried individuals: applicable slab rates, standard deduction, rebate and cess; Objective and scope of the Income-tax Act, 2025 (FAQ); Budget Speech 2025-26 (rebate threshold and marginal relief).
Review state: Slab rates for the new regime (nil to ₹4L, then 5/10/15/20/25/30% at ₹4/8/12/16/20/24L), the ₹75,000 standard deduction, the ₹60,000 section 87A rebate up to ₹12,00,000 of taxable income, the old-regime slabs with a ₹50,000 standard deduction and ₹12,500 rebate up to ₹5,00,000, and the 4% health and education cess are all confirmed against the Income Tax Department. The Income-tax Act, 2025 replaced the 1961 Act with effect from tax year 2026-27, but the Department's own FAQ states it 'does not impose any new tax' and is a language and structure reform; Budget 2026 left slab rates unchanged. The engine's rates are therefore correct for the current tax year.
Review kind: agent-source-verification on 2026-08-25. No qualified professional sign-off is recorded; this is an educational illustration, not tax advice.
Frequently Asked Questions
Which tax year does this calculator use?
Tax year 2026-27. The Income-tax Act, 2025 replaced the 1961 Act from this year, but the Income Tax Department's own FAQ states the new Act does not impose any new tax — it is a language and structure reform — and Budget 2026 left the slab rates unchanged.
What are the new-regime slabs?
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 that. A ₹75,000 standard deduction applies to salary, and a section 87A rebate of up to ₹60,000 makes taxable income up to ₹12 lakh tax-free for a resident individual.
Why does the new regime show nil tax at ₹12.75 lakh gross?
The ₹75,000 standard deduction brings ₹12.75 lakh of gross salary down to ₹12 lakh of taxable income, which the ₹60,000 rebate then wipes out. Just above that threshold, marginal relief limits the tax to the amount by which taxable income exceeds ₹12 lakh.
Does this tell me which regime to pick?
No. It shows what each regime computes for the figures you enter — that is arithmetic, not advice. Your actual choice depends on deductions you can substantiate, other income, and rules this page excludes.
What does this calculator leave out?
Senior-citizen slabs, surcharge and its marginal relief, special-rate income, capital gains, loss set-off, business and profession option rules, and any check of whether your deductions actually qualify.
Can I use this to file a return?
No. It is an educational illustration for a resident, non-senior, salary-only case. Use the Income Tax Department's own utilities and a qualified adviser for filing.
Disclaimer: This calculator produces illustrative estimates only. Actual returns vary and, unless stated otherwise, results exclude expense ratios, exit loads, transaction costs, and taxes. Assumed rates are inputs, not forecasts or assured returns. This is educational content, not personalized investment advice — see our full disclaimer.