Income Tax Calculator -- Old vs New Regime
Enter your income, HRA, house property, and deductions once -- see your tax under both regimes, a plain-language recommendation, and your monthly take-home pay.
Your Details
The old regime gives a higher tax-free threshold to senior and super senior citizens. The new regime treats all ages the same.
Salary Income
Basic pay plus Dearness Allowance only -- not your full gross salary. This is what HRA and employer NPS limits are calculated on.
Special allowances, bonus, and any other salary components, excluding HRA.
Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, and Ahmedabad qualify for the higher 50% HRA exemption rate; other cities get 40%.
Under Section 80CCD(2) -- the one deduction beyond the standard deduction available under BOTH tax regimes.
Other Income
Eligible for the Section 80TTA (below 60) or 80TTB (60+) deduction under the old regime.
House Property
Capped at ₹2,00,000/year under the old regime; not available at all under the new regime.
No cap on this leg -- available under both regimes.
Deductions (Old Regime Only)
These reduce your taxable income only if you choose the old regime -- the new regime does not allow any of them (except the employer NPS contribution above).
Capped at ₹1,50,000/year. Renamed Section 123 under the Income-tax Act, 2025 -- the limit is unchanged.
Capped at ₹50,000/year, on top of the 80C limit above.
A simplified estimate assuming the common 50%-deductible category -- see our Section 80G guide for donations that qualify for 100% deduction.
Your Results
Recommended Regime
New
Tax Payable
₹0
Monthly Take-Home (approx.)
₹97.92K
Old Regime Tax
₹92.87K
New Regime Tax
₹0
You Save
₹92.87K
New Regime -- Full Breakdown
| Gross Salary (Basic + DA + Other + HRA) | ₹12.40L |
| Less: HRA ExemptionA salary component paid by an employer to help cover an employee's rental housing costs. Under Section 10(13A), a portion of it is tax-exempt — but only under the old tax regime — calculated as the least of three amounts: actual HRA received; rent paid minus 10% of Basic+DA; or 50% (metro cities) / 40% (non-metro cities) of Basic+DA. If no rent is actually paid, the entire HRA becomes taxable. | ₹0 |
| Less: Standard DeductionA flat deduction subtracted from salary or pension income before tax is computed. For FY 2026-27 it is ₹75,000 under the new tax regime and ₹50,000 under the old tax regime. No bills, receipts, or investment proof are needed — it is applied automatically. It is one of the few deductions available under both tax regimes. | -₹75.00K |
| Income from Salary | ₹11.65L |
| Income from House Property | ₹0 |
| Income from Business/Freelance | ₹0 |
| Income from Other Sources | ₹10.00K |
| Gross Total IncomeThe sum of income from all five heads — salary, house property, business/profession, capital gains, and other sources — before any Chapter VI-A deductions are applied. Chapter VI-A deductions are subtracted from GTI to arrive at taxable income. GTI is a mid-point figure in the tax computation, not the final taxable amount. | ₹11.75L |
| Less: Chapter VI-A Deductions | ₹0 |
| Taxable Income | ₹11.75L |
| Tax on Taxable Income | ₹57.50K |
| Less: Section 87A RebateA rebate that reduces income tax liability to zero when taxable income falls at or below a set threshold — ₹12,00,000 under the new regime (maximum rebate ₹60,000) or ₹5,00,000 under the old regime (maximum rebate ₹12,500). It is different from a "tax-free slab" — the rebate is applied after tax is computed on the slabs, not built into the slabs themselves. The new regime also has marginal relief just above its threshold; the old regime does not. | -₹57.50K |
| Add: SurchargeAn additional percentage levied on the income tax amount itself (before cess) once total income crosses ₹50 lakh, ₹1 crore, ₹2 crore, or ₹5 crore, with the rate rising at each threshold. Under the new regime, surcharge is capped at 25% even beyond ₹5 crore; under the old regime it rises to 37% beyond ₹5 crore. Marginal relief applies at every threshold to smooth the transition. | ₹0 |
| Add: Health & Education Cess (4%)A flat 4% levy applied on top of (income tax + surcharge), identical under both tax regimes. It funds government health and education initiatives. It is an additional charge, not a deduction or exemption. | ₹0 |
| Final Tax Payable | ₹0 |
Provident Fund (EPF) -- Estimated
| Your EPF Contribution | ₹8.00K |
| Employer's EPF Contribution | ₹8.00K |
| Combined Monthly PF Contribution | ₹16.00K |
Your own EPF contribution above is typically already part of the Section 80C figure you entered -- shown here for information, not counted a second time.
Estimated using the standard 12% EPF contribution rate on your Basic + DA, for both you and your employer. Some smaller employers use a lower rate, and employees above the ₹15,000/month statutory wage ceiling may be exempt from mandatory EPF -- check your payslip for your actual contribution.
Under the Old Regime, you would instead pay ₹92.87K in tax.
This calculator is for illustrative planning purposes only and uses figures verified as of September 2026 (see our Income Tax guides for sources and a few figures still pending final verification against official notifications). It is not tax advice. Please verify against the official Income Tax Department website or consult a Chartered Accountant before filing.
Rates and rules last verified on 09 Aug 2026.
How the Income Tax Calculator Works
India currently runs two parallel tax regimes, and most taxpayers can choose whichever works out cheaper for them each year. The new regime offers lower slab rates but disallows almost every deduction and exemption (HRA, 80C, home loan interest, and more). The old regime keeps those deductions available but taxes you at higher slab rates. This calculator computes your tax liability under both regimes side by side, using the deductions and exemptions you actually qualify for, and tells you which one saves you more.
For FY 2026-27, the new regime taxes income above ₹24 lakh at a flat 30%, with progressively lower rates down to nil below ₹4 lakh, plus a standard deduction and Section 87A rebate for lower incomes. The old regime's slabs start taxing at ₹2.5 lakh (₹3 lakh for senior citizens 60+, ₹5 lakh for super-seniors 80+), but every rupee of eligible HRA, 80C, 80D, and other Chapter VI-A deductions you claim reduces your taxable income before those slabs apply -- which is exactly why the 'better' regime depends entirely on how many deductions you can actually use.
Frequently asked questions
Which regime is better for me?
It depends almost entirely on how much you can claim in deductions under the old regime. Someone with a home loan, HRA, and a full ₹1.5 lakh in 80C investments often does better under the old regime; someone with few deductions usually comes out ahead on the new regime's lower slab rates.
Can I switch between regimes every year?
Salaried individuals can choose a different regime each financial year when filing their return. If you have business/professional income, switching back to the old regime after opting for the new one is more restricted -- generally allowed only once in a lifetime.
Does this calculator account for surcharge on very high incomes?
Yes, where applicable -- but treat this calculator as a planning estimate, not a filing-ready computation. Surcharge, marginal relief, and edge cases around exact income thresholds are exactly where a CA's review adds the most value.