How to use the Income Tax Calculator
- 1 Enter your gross yearly income.
- 2 Choose salaried or pension to get the standard deduction, and your age for old-regime slabs.
- 3 Enter old-regime deductions such as 80C, 80D and home loan interest, and any exempt HRA.
- 4 Compare the total tax under both regimes and the saving.
Worked example
A salaried person earning ₹15 lakh with ₹2 lakh of old-regime deductions. In the new regime, taxable income is ₹14.25 lakh and tax with cess is ₹97,500. In the old regime, taxable income is ₹12.5 lakh and tax with cess is ₹1,95,000. The new regime saves ₹97,500 a year.
Features
Both regimes
New and old regime tax side by side, with the cheaper one highlighted.
Rebate
Tax-free up to ₹12 lakh taxable income in the new regime, with marginal relief, and up to ₹5 lakh in the old regime.
Standard deduction
₹75,000 in the new regime and ₹50,000 in the old regime for salaried people and pensioners.
Surcharge and cess
Surcharge above ₹50 lakh and 4% health and education cess.
When to use it
Choosing a regime
Decide which regime to tell your employer at the start of the year.
Salary planning
See how much tax a raise adds.
Investment decisions
Check whether 80C investments still save tax for you.
Filing your ITR
Cross-check the tax before filing.
Frequently asked questions
What are the new regime slabs for FY 2026-27?
Up to ₹4 lakh nil, ₹4 to 8 lakh 5%, ₹8 to 12 lakh 10%, ₹12 to 16 lakh 15%, ₹16 to 20 lakh 20%, ₹20 to 24 lakh 25% and above ₹24 lakh 30%. Budget 2026 kept these slabs unchanged.
Is income up to ₹12 lakh tax-free?
In the new regime, yes. A rebate brings tax to zero when taxable income is up to ₹12 lakh. With the ₹75,000 standard deduction, salaried people pay no tax up to ₹12.75 lakh.
What are the old regime slabs?
Below 60: up to ₹2.5 lakh nil, ₹2.5 to 5 lakh 5%, ₹5 to 10 lakh 20% and above ₹10 lakh 30%. Seniors get ₹3 lakh tax-free and super seniors ₹5 lakh.
Which regime is better?
The new regime is usually better unless you claim large deductions, such as ₹1.5 lakh under 80C, health insurance, home loan interest and a large HRA exemption.
What is marginal relief?
If your taxable income is just above ₹12 lakh in the new regime, your tax is capped at the amount by which income exceeds ₹12 lakh, so a small rise in income never costs more than the rise itself.
What is the cess?
A 4% health and education cess is added to income tax plus surcharge.
What changed with the new Income-tax Act?
The Income-tax Act, 2025 took effect from 1 April 2026 and replaces terms such as 'assessment year' with 'tax year'. The rates for 2026-27 are the same as Budget 2026 announced.
Can I switch regimes every year?
Salaried people without business income can choose each year when filing their return. People with business income can switch back only once.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated