Which regime should I choose?

If your total deductions (80C, 80D, HRA, LTA, home loan interest, NPS) exceed ₹3–4 lakh, the old regime is likely better. If your deductions are minimal, the new regime with lower slab rates usually saves more.

Can I switch between regimes every year?

Salaried employees can switch between old and new regime every financial year. Business/professional income earners can switch only once.

What is the rebate under Section 87A?

Under the new regime, if your total tax is ≤ ₹25,000 (effectively income up to ₹7 lakh), the entire tax is waived as a rebate. Under the old regime, the rebate limit is ₹12,500 for income up to ₹5 lakh.

Is the 4% cess separate from income tax?

Yes. The Health & Education Cess of 4% is charged on the total income tax (including surcharge if applicable). It goes toward funding health and education initiatives.

Surcharge applies to high incomes: 10% for ₹50L–₹1Cr, 15% for ₹1Cr–₹2Cr, 25% for ₹2Cr–₹5Cr, 37% for above ₹5Cr (old regime). This calculator does not include surcharge. Add it separately for high incomes.

Income Tax Calculator

Estimate tax on taxable income. Choose new or old regime. Rebate 87A applied where applicable.

Gratuity PPF EPF / PF EMI SIP FD NPS Income Tax HRA Age GST Percentage BMI

How to use this calculator

1
Enter taxable income
Enter your total taxable income (after deductions for old regime, or gross for new regime comparison).
2
Choose tax regime
Select old regime or new regime. The calculator applies the correct slab rates, standard deduction, and rebate 87A.
3
Compare tax liability
View slab-wise tax breakdown, cess, effective tax rate, and the difference between regimes to make the right choice.

Taxable income (annual) ₹

₹

Regime

New regimeOld regime

Tax (incl. 4% cess)

Tax before cess₹ 50,000

Cess (4%)₹ 2,000

Total tax₹ 52,000

Effective rate5.20%

New regime: 0–3L nil, 3–7L 5%, 7–10L 10%, 10–12L 15%, 12–15L 20%, 15L+ 30%. Rebate 87A: tax nil if ≤ ₹25,000. Use taxable income after deductions.

Quick answer

Old vs new regime choice is deduction-dependent. This calculator helps compare both quickly with slab-wise tax and cess impact.

India has two income tax regimes: the Old Regime (with deductions like 80C, 80D, HRA) and the New Regime (lower slab rates but fewer deductions). From FY 2023-24, the new regime is the default. This calculator helps you quickly estimate your tax under either regime.

What is this calculator?

An Income Tax Calculator estimates the total tax you owe based on your taxable income and the chosen regime. Enter your taxable income (after deductions for old regime), select old or new regime, and see the tax breakdown: tax before cess, cess at 4%, total tax, and effective tax rate.

Formula

Tax is calculated by applying progressive slab rates to your income:

New Regime (FY 2024-25):
• 0 – ₹3 lakh: Nil
• ₹3 – ₹7 lakh: 5%
• ₹7 – ₹10 lakh: 10%
• ₹10 – ₹12 lakh: 15%
• ₹12 – ₹15 lakh: 20%
• Above ₹15 lakh: 30%

Rebate 87A: If total tax ≤ ₹25,000 (income up to ~₹7 lakh), tax becomes zero.

Old Regime:
• 0 – ₹2.5 lakh: Nil
• ₹2.5 – ₹5 lakh: 5%
• ₹5 – ₹10 lakh: 20%
• Above ₹10 lakh: 30%

Health & Education Cess: 4% on total tax.

Example

Taxable income: ₹12,00,000 under the new regime. • 0 – 3L: ₹0 • 3 – 7L: 4L × 5% = ₹20,000 • 7 – 10L: 3L × 10% = ₹30,000 • 10 – 12L: 2L × 15% = ₹30,000 • Tax before cess = ₹80,000 • Cess = ₹80,000 × 4% = ₹3,200 • Total tax = ₹83,200 • Effective rate = 6.93% Under the old regime (same income, no deductions): Tax = ₹1,17,000 + cess = ₹1,21,680. The new regime saves ₹38,480 in this case.

Another example

If gross income is ₹14 lakh and eligible old-regime deductions are ₹3.5 lakh, your taxable income under old regime can drop enough to narrow or reverse the new-regime advantage. Run both cases with your exact salary components and deductions.

Scenario snapshots

Salary with minimal deductions

Run new regime baseline first, then compare old regime only if deduction pool is material.

High-deduction salaried case

Model old regime with HRA, 80C, 80D, and home-loan assumptions vs new regime.

Monthly TDS planning

Estimate annual tax first and then map into monthly withholding expectations.

Decision guide

Choose this when

✓You want a quick old-vs-new regime estimate for salaried planning.
✓You need slab-wise visibility before choosing payroll declaration.
✓You are validating tax impact of deductions and exemptions.

Pick another route when

•You need filing-grade tax computation with surcharge, capital gains, or special incomes.
•You are a business/professional taxpayer with regime-switch restrictions needing tailored advice.
•You need final legal opinion instead of an educational estimate.

Common mistakes to avoid

!Comparing regimes without entering realistic deductions in old regime case.
!Ignoring cess/surcharge in high-income scenarios.
!Using outdated slab assumptions without checking current FY applicability.

Assumptions and disclaimers

Updated context: FY 2026

•Calculator follows published slab logic and rebate handling for supported FY setup.
•Surcharge and complex income categories may not be fully modeled.
•Actual tax depends on complete income profile and compliance details.

In practice (India)

People commonly search income tax calculator old vs new regime with salary examples. This page is best used in two steps: first compute new regime with minimal deductions, then compute old regime with realistic 80C, 80D, HRA, and home-loan assumptions. The gap between outcomes is your decision signal.

For salaried users paying rent or EMIs, combine this result with HRA and EMI calculators to avoid overestimating tax savings.

Benefits

✓Instantly compare old vs new regime. Choose the one that saves more tax.
✓See the effective tax rate on your income, not just the slab rate.
✓Understand how cess and rebate 87A affect your final tax.
✓Plan salary restructuring, investments (80C, NPS), and deductions accordingly.

Related calculators and guides

Frequently Asked Questions

Which regime should I choose?: If your total deductions (80C, 80D, HRA, LTA, home loan interest, NPS) exceed ₹3–4 lakh, the old regime is likely better. If your deductions are minimal, the new regime with lower slab rates usually saves more.
Can I switch between regimes every year?: Salaried employees can switch between old and new regime every financial year. Business/professional income earners can switch only once.
What is the rebate under Section 87A?: Under the new regime, if your total tax is ≤ ₹25,000 (effectively income up to ₹7 lakh), the entire tax is waived as a rebate. Under the old regime, the rebate limit is ₹12,500 for income up to ₹5 lakh.
Is the 4% cess separate from income tax?: Yes. The Health & Education Cess of 4% is charged on the total income tax (including surcharge if applicable). It goes toward funding health and education initiatives.
What is surcharge?: Surcharge applies to high incomes: 10% for ₹50L–₹1Cr, 15% for ₹1Cr–₹2Cr, 25% for ₹2Cr–₹5Cr, 37% for above ₹5Cr (old regime). This calculator does not include surcharge. Add it separately for high incomes.

This calculator uses FY 2024-25 slab rates and does not include surcharge. For income above ₹50 lakh, surcharge applies additionally. Consult a CA for precise tax planning.