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Income Tax · Updated for tax year 2026-27

Income Tax Calculator — Old vs New Regime

Income tax for tax year 2026-27 is your taxable income taxed at slab rates, less the rebate under Section 156 (old sec. 87A), plus surcharge and 4% cess. Under the new regime of Section 202 (old sec. 115BAC), income up to ₹12 lakh is tax-free (₹12.75 lakh for salaried people after the ₹75,000 standard deduction under Section 19 (old sec. 16(ia))). Enter your income and deductions to compare both regimes.

Enter your details

Values you enterComputed values
Age

Interest, rent after 30% deduction, freelance

Allowed in both regimes

Old-regime deductions

Max ₹1,50,000

Max ₹50,000

Self-occupied, max ₹2,00,000

Max ₹2,500

Result

Better for you

New regime saves ₹1,45,600

ParticularsNew regimeOld regime
Gross income₹18,00,000₹18,00,000
Deductions₹75,000₹2,25,000
Taxable income₹17,25,000₹15,75,000
Tax on slabs₹1,45,000₹2,85,000
Rebate u/s 156 (old 87A)——
Surcharge——
Cess (4%)₹5,800₹11,400
Effective rate8.4%16.5%
Total tax₹1,50,800₹2,96,400
Per month₹12,567₹24,700

Disclaimer: Computed to the best of our knowledge, as per the law — including the section changes under the Income-tax Act, 2025 — in force on the date this website was last deployed (28 Sep 2026). Results are estimates for guidance only and are not tax, legal or investment advice. Please verify with the Act, rules and notifications, or a qualified professional, before relying on them. Rates and limits last reviewed on 28 Sep 2026.

How to use the Income Tax Calculator

  1. 1

    Choose your age group — it changes the old-regime exemption limit.

  2. 2

    Enter your gross annual salary and any other income such as interest, rent (after the 30% deduction) or freelance income.

  3. 3

    Add your employer’s NPS contribution if you have one; it is deductible in both regimes under Section 124 (old sec. 80CCD(2)).

  4. 4

    Fill in old-regime deductions such as Section 123 (old sec. 80C), Section 126 (old sec. 80D), HRA exemption and home-loan interest under Section 22 (old sec. 24(b)). They are ignored in the new regime.

  5. 5

    Compare the total tax under both regimes and pick the lower one when you file.

How income tax is calculated

Taxable income = Gross income − Standard deduction − Deductions allowed in the regime

Tax = Σ (income in each slab × slab rate) − Rebate

Total tax = (Tax + Surcharge) × 1.04

New regime slabs: 0–4L nil · 4–8L 5% · 8–12L 10% · 12–16L 15% · 16–20L 20% · 20–24L 25% · above 24L 30%

Old regime (below 60): 0–2.5L nil · 2.5–5L 5% · 5–10L 20% · above 10L 30%

Rebate: up to ₹60,000 when taxable income is ₹12 lakh or less (new regime), with marginal relief just above ₹12 lakh; up to ₹12,500 when it is ₹5 lakh or less (old regime). Surcharge applies above ₹50 lakh (10%), ₹1 crore (15%), ₹2 crore (25%) and ₹5 crore (37% old regime; capped at 25% in the new regime).

Worked example: ₹18 lakh salary

  • New regime: ₹18,00,000 − ₹75,000 standard deduction = ₹17,25,000 taxable. Slab tax = ₹20,000 + ₹40,000 + ₹60,000 + ₹25,000 = ₹1,45,000. With 4% cess the tax is ₹1,50,800.
  • Old regime with ₹1.5 lakh under Section 123 (old sec. 80C), ₹25,000 under Section 126 (old sec. 80D) and the ₹50,000 standard deduction: taxable ₹15,75,000. Tax = ₹12,500 + ₹1,00,000 + ₹1,72,500 = ₹2,85,000, or ₹2,96,400 with cess.
  • The new regime saves ₹1,45,600 here. The old regime only wins when deductions are large — typically HRA plus a home loan.

New regime or old regime — which is better?

The new regime is the default from tax year 2023-24 and has lower rates, but it allows very few deductions: the standard deduction, employer NPS contribution and a few others. The old regime keeps deductions like Section 123 (old sec. 80C), Section 126 (old sec. 80D), HRA and home-loan interest but has higher rates.

As a rough rule, the old regime only pays off when your deductions (excluding the standard deduction) exceed about ₹4–8 lakh, depending on income. Salaried employees can choose every year; people with business income can switch back to the old regime only once.

What changed for tax year 2026-27

The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026 and uses a single "tax year" instead of "previous year" and "assessment year". Budget 2026 kept the slab rates, the ₹75,000 standard deduction and the ₹60,000 rebate unchanged. Section numbers have changed in the new Act — for example the new regime is now Section 202 (old sec. 115BAC) and the rebate is Section 156 (old sec. 87A) — so forms and notices quote different sections for the same deductions.

Frequently asked questions

Under the new regime, taxable income up to ₹12 lakh pays no tax because of the ₹60,000 rebate under Section 156 (old sec. 87A). For salaried people that means a salary of up to ₹12.75 lakh, after the ₹75,000 standard deduction. The rebate does not cover special-rate income such as capital gains on shares.