Income Tax Calculator (India)
India currently runs two parallel income tax systems: the new regime (lower slab rates, almost no deductions, and the default option) and the old regime (higher slab rates, but you can claim deductions like 80C, 80D and HRA). This calculator computes your tax payable under both for FY 2026-27 (AY 2027-28) so you can see which regime leaves you with more take-home pay.
How to use the income tax calculator (india)
- Enter your gross annual income (salary or total taxable income before deductions).
- Enter your total old-regime deductions — 80C investments (up to ₹1.5 lakh), 80D health insurance, HRA exemption, home loan interest, etc. This field is ignored for the new-regime figure, since the new regime does not allow most deductions.
- Choose your age category, since senior and super-senior citizens get a higher basic exemption limit under the old regime.
- Compare the two tax figures and pick whichever is lower — you can choose a different regime each year if you have no business income.
Formula
New regime (FY 2026-27), all ages: ₹0–4L: nil · ₹4–8L: 5% · ₹8–12L: 10% · ₹12–16L: 15% · ₹16–20L: 20% · ₹20–24L: 25% · above ₹24L: 30%. A ₹75,000 standard deduction applies to salary income, and a Section 87A rebate of up to ₹60,000 makes tax nil for taxable income up to ₹12,00,000. 4% health & education cess is added on the tax.
Old regime, below 60: ₹0–2.5L: nil · ₹2.5–5L: 5% · ₹5–10L: 20% · above ₹10L: 30%, after a ₹50,000 standard deduction and your entered deductions. Senior (60–79) and super-senior (80+) citizens get a nil slab up to ₹3L and ₹5L respectively. A Section 87A rebate applies up to ₹5,00,000 taxable income. 4% cess is added.
Worked examples
A ₹12 lakh salary, minimal deductions
Under the new regime, ₹12,00,000 gross minus the ₹75,000 standard deduction gives ₹11,25,000 taxable — under the ₹12L rebate threshold, so tax is ₹0. Under the old regime with only the ₹50,000 standard deduction, taxable income is ₹11,50,000 and tax comes to roughly ₹1,63,800 including cess. The new regime wins clearly here.
A ₹18 lakh salary with ₹3 lakh of old-regime deductions
With sizeable 80C, 80D and HRA claims, the old regime can pull taxable income down enough to sometimes beat the new regime’s lower rates — this is exactly why the calculator shows both figures side by side instead of assuming one is always better.
Common mistakes to avoid
- Assuming the new regime is always cheaper — it usually is for people with few deductions, but large HRA, home-loan interest or 80C claims can tip the balance back to the old regime.
- Forgetting the ₹87A rebate only zeroes out the tax below its threshold; income just above ₹12L (new regime) or ₹5L (old regime) is taxed on the full slab basis, so there can be a sharp jump (marginal relief provisions may apply and are not modelled here).
- Mixing up gross income and taxable income — deductions and the standard deduction reduce gross income to arrive at taxable income, which is what the slabs actually apply to.
Frequently asked questions
Which regime is better, new or old?
It depends on how many deductions you can claim. With minimal deductions, the new regime’s lower slabs usually win. With large 80C, 80D, HRA or home-loan-interest claims, the old regime can still come out ahead — compare both, as this calculator does.
Is the new regime compulsory?
The new regime is the default from FY 2023-24 onward, but salaried individuals with no business income can choose the old regime every year when filing their return.
What is the Section 87A rebate?
A rebate that reduces tax to nil for taxpayers under a certain taxable-income threshold — ₹12,00,000 under the new regime and ₹5,00,000 under the old regime for FY 2026-27. It applies before cess and does not apply to certain special-rate incomes like short-term capital gains.
Does this calculator include surcharge?
No. Surcharge applies only above ₹50 lakh of taxable income on a sliding scale and is not modelled here — for high incomes, consult a tax professional or the Income Tax Department’s official calculator.
Sources: Income Tax Department of India — official tax rates
Reviewed September 29, 2026 by the CalcSolver editorial team. Found a mistake? Tell us; see our editorial policy.