The new tax regime offers lower slab rates but removes most deductions and exemptions. The old tax regime has higher slab rates but lets you claim deductions like 80C, 80D, HRA and home loan interest. The right choice depends on how many deductions you actually claim.

There is no single answer. As a rough guide, the new regime usually wins if you have few deductions, while the old regime can win if your total deductions are large (typically well above ₹3.75 lakh). This calculator compares both instantly so you can see the exact rupee difference for your income.

Under the new regime for FY 2026-27: nil up to ₹4 lakh, 5% from ₹4–8 lakh, 10% from ₹8–12 lakh, 15% from ₹12–16 lakh, 20% from ₹16–20 lakh, 25% from ₹20–24 lakh, and 30% above ₹24 lakh. These slabs are unchanged from Budget 2025.

Under the old regime: nil up to ₹2.5 lakh, 5% from ₹2.5–5 lakh, 20% from ₹5–10 lakh, and 30% above ₹10 lakh. The basic exemption is higher for senior citizens (₹3 lakh) and super senior citizens (₹5 lakh).

Yes, for most resident individuals. A Section 87A rebate of up to ₹60,000 makes taxable income up to ₹12 lakh effectively tax-free under the new regime. For salaried individuals, the ₹75,000 standard deduction extends this to a salary of about ₹12.75 lakh.

Salaried individuals and pensioners get a standard deduction of ₹75,000 in the new regime and ₹50,000 in the old regime. It is applied automatically before the slabs and needs no bills or proof. Tick the salaried option in the calculator to include it.

Section 87A is a rebate that reduces your tax to zero if your taxable income is within a limit. Under the new regime the rebate is up to ₹60,000 for taxable income up to ₹12 lakh. Under the old regime it is up to ₹12,500 for taxable income up to ₹5 lakh.

Marginal relief protects people whose income is just above the ₹12 lakh rebate limit in the new regime. It ensures the extra tax you pay never exceeds the income earned above ₹12 lakh. This calculator applies marginal relief automatically, so incomes slightly above ₹12 lakh are not taxed unfairly.

The new regime is deliberately simple and disallows most deductions, including 80C, 80D and HRA. The main benefit still available to salaried taxpayers is the ₹75,000 standard deduction, along with the employer's NPS contribution under 80CCD(2) in eligible cases.

The old regime allows a wide range of deductions and exemptions, such as Section 80C (up to ₹1.5 lakh), 80D health insurance, 80CCD(1B) NPS (up to ₹50,000), home loan interest under Section 24(b) (up to ₹2 lakh) and HRA. Enter these in the old-regime deduction fields to compare accurately.

Section 80C allows a maximum deduction of ₹1.5 lakh per financial year, covering EPF, PPF, ELSS, life insurance premiums, principal on a home loan, tax-saving fixed deposits and more. The calculator caps this input at ₹1.5 lakh automatically.

No. House Rent Allowance (HRA) exemption is not available under the new regime. If you pay significant rent and can claim a large HRA exemption, the old regime may be more beneficial, which the calculator will reflect in the comparison.

In the old regime, the basic exemption limit rises with age: ₹2.5 lakh below 60, ₹3 lakh for senior citizens (60–79) and ₹5 lakh for super senior citizens (80+). The new regime offers the same slabs to everyone regardless of age, so age matters only for the old regime.

The new tax regime is the default under Section 115BAC. If you want the old regime, you must actively opt for it while filing your return. If you do nothing, your tax is computed under the new regime.

Salaried individuals and others without business income can generally choose their regime afresh each year while filing their return. Taxpayers with business or professional income face restrictions on switching back and forth, so they should plan carefully or consult a tax advisor.

A 4% health and education cess applies on the income tax amount (plus surcharge, if any) under both regimes. This calculator includes the 4% cess in the final tax figure it shows for each regime.

Surcharge applies to higher incomes: 10% above ₹50 lakh, 15% above ₹1 crore and 25% above ₹2 crore, with an additional 37% band above ₹5 crore in the old regime only (the new regime is capped at 25%). The calculator applies a simplified surcharge, so very high earners should confirm the exact figure with a tax professional.

The Income-tax Act, 2025 takes effect from 1 April 2026 and replaces the 1961 Act, but it mainly simplifies and renumbers the law. The slab rates, rebate and standard deduction for FY 2026-27 stay at the levels set in Budget 2025, so your tax arithmetic is unchanged.

No. This calculator covers regular income taxed at slab rates. Special-rate income such as capital gains from shares or mutual funds is taxed separately and is not covered by the Section 87A rebate. For capital gains, use our dedicated capital gains tax calculator.

The standard deduction (₹75,000 new regime, ₹50,000 old regime) is available only to salaried individuals and pensioners. Ticking the salaried option applies it automatically so your comparison is accurate; untick it if you have only business or other income.

For most salaried individuals the return for a tax year is typically due by 31 July of the following year, while non-audit business returns now have a slightly later window. Deadlines can change year to year, so always confirm the current due date on the income tax portal before filing.

It is designed for quick, educational estimates using FY 2026-27 slab rates for resident individuals. It applies simplified surcharge rules and does not model every exemption or special-rate income. Your final tax should be based on your full income details and, where needed, advice from a qualified tax professional.