New regime vs old regime
Resident individuals can pay income tax under two systems. The new regime has lower rates and a higher rebate but allows almost no deductions. The old regime has higher rates but lets you subtract deductions such as 80C investments, health insurance, HRA and home loan interest. This calculator computes both on the same income so you can compare the tax you would pay.
Slabs used for FY 2026-27 (AY 2027-28)
New regime: nothing up to ₹4 lakh; 5% from ₹4 to 8 lakh; 10% from ₹8 to 12 lakh; 15% from ₹12 to 16 lakh; 20% from ₹16 to 20 lakh; 25% from ₹20 to 24 lakh; and 30% above ₹24 lakh. With the Section 87A rebate, there is no tax when taxable income is up to ₹12 lakh, which means salaried people with income up to ₹12.75 lakh pay nothing after the ₹75,000 standard deduction.
Old regime (below 60): nothing up to ₹2.5 lakh; 5% from ₹2.5 to 5 lakh; 20% from ₹5 to 10 lakh; and 30% above ₹10 lakh, with a rebate that removes tax when taxable income is up to ₹5 lakh. The standard deduction is ₹50,000. Higher exemption limits apply to senior and super senior citizens.
Budget 2026 left these slabs unchanged. A 4% health and education cess is added to the tax, and surcharge applies on income above ₹50 lakh, with marginal relief near each threshold.
Which regime is better?
The new regime usually wins when your deductions are small. The old regime can win when your total deductions are large, because each rupee deducted saves tax at your highest slab rate. Enter your real deductions above and the calculator shows the difference in rupees.
Frequently asked questions
Is income up to 12 lakh really tax-free?
Under the new regime, the Section 87A rebate makes tax zero when taxable income is up to Rs 12 lakh. For salaried people, the Rs 75,000 standard deduction means gross income up to Rs 12.75 lakh pays no tax. Special-rate income such as some capital gains is not covered by the rebate.
Which regime should I choose?
Compare both with your actual deductions. If your total deductions are small, the new regime is usually cheaper. If they are large, the old regime can be cheaper. The result panel shows which is lower for your numbers.
Does this include surcharge and cess?
Yes. A 4% health and education cess is added, and surcharge applies above Rs 50 lakh of income, with marginal relief.
Why is my result different from my employer's calculation?
Employers use your exact salary structure, exemptions and declared investments. This tool uses simple inputs and is meant for planning, not filing.
Last reviewed October 15, 2026. Results are estimates.