The Income Tax Calculator computes your Indian income-tax liability for FY 2025-26 under both the Old and the New regimes and tells you which regime is cheaper for you. It applies the applicable standard deduction, the Section 87A rebate and the 4% health and education cess so you receive a final, ready-to-use tax number.
Choosing between the Old and the New regime is one of the most consequential financial decisions Indian taxpayers make every year. This tool converts that decision into a simple, side-by-side comparison — no spreadsheets, no lookups and no signup.
Old vs New regime — the essential difference
The Old regime allows a wide range of deductions and exemptions — Section 80C, 80D, HRA, home-loan interest, LTA and dozens of others — but at higher slab rates. The New regime offers lower slab rates and a higher rebate threshold, but strips out most of the deductions.
For salaried taxpayers, the New regime is now the default from Budget 2023 onwards. You must actively opt into the Old regime if you want to continue with 80C-style deductions.
New regime slabs for FY 2025-26
- Up to ₹4,00,000 — Nil
- ₹4,00,001 to ₹8,00,000 — 5%
- ₹8,00,001 to ₹12,00,000 — 10%
- ₹12,00,001 to ₹16,00,000 — 15%
- ₹16,00,001 to ₹20,00,000 — 20%
- ₹20,00,001 to ₹24,00,000 — 25%
- Above ₹24,00,000 — 30%
- Standard deduction of ₹75,000 for salaried and pensioners
- Full Section 87A rebate on taxable income up to ₹12,00,000
Old regime slabs for FY 2025-26
- Up to ₹2,50,000 — Nil
- ₹2,50,001 to ₹5,00,000 — 5%
- ₹5,00,001 to ₹10,00,000 — 20%
- Above ₹10,00,000 — 30%
- Standard deduction of ₹50,000 for salaried and pensioners
- Section 87A rebate on taxable income up to ₹5,00,000
- All 80C, 80D, 80E, 80G, HRA, home-loan interest and similar deductions available
How this calculator computes tax
Common steps
- Start with your gross annual income
- Reduce the standard deduction — ₹75,000 in New, ₹50,000 in Old
- In the Old regime, reduce further by all eligible chapter VI-A and other deductions
- Apply the slab rates in a step-wise, marginal fashion
- Apply the Section 87A rebate if the taxable income is within the threshold
- Add 4% health & education cess on the tax after rebate
- The final total is your net tax liability for the year
How to use the calculator
- Step 1Enter your gross annual income — salary, business income, interest, rental and other income combined.
- Step 2Enter the total of Old-regime deductions you expect to claim — 80C, 80D, HRA, home-loan interest and similar.
- Step 3The tool computes tax under both regimes side by side.
- Step 4A summary badge highlights the cheaper regime and the amount you save by choosing it.
When the Old regime tends to be better
- You claim large 80C investments (₹1.5 L), 80D health insurance and 80CCD(1B) NPS
- You have significant home-loan interest deductible under Section 24(b)
- You live in a rented house in a metro and claim substantial HRA
- Your total deductions add up to a large fraction of the higher new-regime break-even
When the New regime tends to be better
- You have few or no deductions — young professionals starting out
- You do not have a home loan, HRA or a fully utilised 80C basket
- Your income is between ₹8L and ₹12L where the 87A rebate zeroes out the New regime
- You prefer simplicity and higher take-home over locked-in tax-saving investments