Income Tax Calculator (India)

Q: Which is better, old or new tax regime?

It depends entirely on how many deductions and exemptions you claim. The new regime has lower tax rates but allows almost no deductions. The old regime has higher rates but lets you claim deductions like Section 80C, 80D, and HRA. If your total eligible deductions are large - often above roughly 3.5 to 4 lakh, depending on your income - the old regime can work out cheaper. This calculator compares both using your actual numbers.

Q: What is the Section 87A rebate?

Section 87A gives eligible resident individuals a rebate that reduces their tax to zero if their taxable income is below a threshold - up to 12 lakh under the new regime, or up to 5 lakh under the old regime, for FY 2025-26. Marginal relief also applies just above these thresholds so tax doesn't jump sharply for a small rise in income.

Old vs New regime, compared side by side — updates instantly as you type

⚠️ Based on income tax slabs for FY 2025-26 (AY 2026-27) as announced in Union Budget 2025. Tax slabs can change with each year's Budget — please verify against the latest official rates or consult a tax professional before making financial decisions. Surcharge (applicable only above ₹50 lakh income) is not included in this estimate.

Annual Gross Income

Age Group (for Old Regime)

Total Deductions (Old Regime only — 80C, 80D, HRA, etc.)

Please enter a valid, positive annual income.

New Regime
Gross Income	₹0
Standard Deduction	₹0
Taxable Income	₹0
Tax (incl. 4% cess)	₹0

Old Regime
Gross Income	₹0
Standard Deduction + Other	₹0
Taxable Income	₹0
Tax (incl. 4% cess)	₹0

New Tax Regime Slabs (FY 2025-26)

Income Slab	Tax Rate
Up to ₹4,00,000	Nil
₹4,00,001 – ₹8,00,000	5%
₹8,00,001 – ₹12,00,000	10%
₹12,00,001 – ₹16,00,000	15%
₹16,00,001 – ₹20,00,000	20%
₹20,00,001 – ₹24,00,000	25%
Above ₹24,00,000	30%

Standard deduction of ₹75,000 applies for salaried taxpayers. Under Section 87A, taxable income up to ₹12,00,000 attracts zero tax, with marginal relief just above that threshold.

Old Tax Regime Slabs (Below 60)

Income Slab	Tax Rate
Up to ₹2,50,000	Nil
₹2,50,001 – ₹5,00,000	5%
₹5,00,001 – ₹10,00,000	20%
Above ₹10,00,000	30%

The nil-tax threshold is ₹3,00,000 for senior citizens (60-80) and ₹5,00,000 for super senior citizens (80+). Standard deduction of ₹50,000 applies for salaried taxpayers, and Section 87A gives a rebate up to ₹12,500 that zeroes out tax for taxable income up to ₹5,00,000.

Old vs New Regime — Which Should You Pick?

The new regime offers lower rates but very few deductions — mainly the standard deduction. The old regime has higher rates but lets you claim deductions like Section 80C (up to ₹1.5 lakh for EPF, ELSS, life insurance, etc.), Section 80D (health insurance premiums), and HRA exemption if you're a salaried tenant. As a rough guide, if your total eligible deductions comfortably exceed roughly ₹3.5-4 lakh, the old regime often works out cheaper — otherwise the new regime usually wins. Since this varies with your exact income and deductions, use the calculator above with your own numbers rather than a generic rule of thumb.

Frequently Asked Questions

Which is better, old or new tax regime?

It depends on how many deductions you claim. The new regime has lower rates but almost no deductions; the old regime has higher rates but allows deductions like 80C, 80D and HRA. If your eligible deductions are large enough, old regime can work out cheaper — this calculator compares both using your actual numbers.

What is the Section 87A rebate?

It's a rebate that zeroes out tax for eligible resident individuals below a certain taxable income - up to ₹12 lakh under the new regime, or ₹5 lakh under the old regime, for FY 2025-26 - with marginal relief just above these thresholds.

Can I switch between old and new tax regime every year?

Salaried individuals without business income can choose either regime every financial year when filing their return. Those with business or professional income have more restricted switching rules.