Income tax calculator, old regime vs new
Works out your tax under both regimes at once and tells you which is cheaper. It applies the Section 87A rebate, the marginal relief just above ₹12 lakh, and surcharge with its own marginal relief — the three things simpler calculators tend to skip.
Works for AY 2026-27 (FY 2025-26) and AY 2027-28 (FY 2026-27) — Budget 2026 left the slabs unchanged, so both years use the same figures
Your income
Enter gross figures before any deduction. The calculator applies the standard deduction itself.
Age changes the basic exemption in the old regime only. The new regime uses ₹4 lakh for everyone.
Deductions — old regime only
The new regime allows almost none of these, which is exactly why the comparison matters. Leave them blank if you do not claim them.
Tax payable
New regime breakdown
Old regime breakdown
Estimate only. Ignores capital gains taxed at special rates, and relief under Sections 89, 90 and 91.
Which year does this calculator cover?
Both of the years anyone is likely to need right now, because the slabs are identical for each.
| Financial year | Assessment year | What it is for | Slabs |
|---|---|---|---|
| FY 2025-26 Apr 2025 – Mar 2026 | AY 2026-27 | The return you file now, in 2026 | Same |
| FY 2026-27 Apr 2026 – Mar 2027 | AY 2027-28 | Income you are earning now; planning and advance tax | Same |
The two are often confused. The financial year is when you earn; the assessment year is the following year, when that income is assessed and the return is filed. Filing in 2026 for money earned between April 2025 and March 2026 means FY 2025-26 and AY 2026-27 — two names for the same exercise.
Because Budget 2026 made no change to the slabs, the basic exemption, the standard deduction or the Section 87A rebate, a calculation for either year produces the same tax on the same income. Use the calculator above for whichever you need.
Slabs for AY 2026-27 and AY 2027-28
Budget 2026 made no change to the slabs or the basic exemption, so the structure introduced for FY 2025-26 carries forward unchanged into FY 2026-27. These figures apply to both AY 2026-27 and AY 2027-28.
New regime — Section 115BAC
| Taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Standard deduction for the salaried is ₹75,000. The Section 87A rebate is ₹60,000, which wipes out the tax on taxable income up to ₹12 lakh — so a salaried person pays nothing up to a gross salary of ₹12.75 lakh.
Old regime
| Taxable income | Rate |
|---|---|
| Up to ₹2,50,000 (₹3L if 60–79, ₹5L if 80+) | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Standard deduction is ₹50,000 and the 87A rebate is ₹12,500, available up to ₹5 lakh of taxable income. In exchange the old regime keeps 80C, 80D, HRA and home loan interest.
The ₹12 lakh cliff, and why it is not a cliff
Taxable income of ₹12,00,000 attracts no tax because of the rebate. Income of ₹12,10,000 would, on a naive reading, attract about ₹61,500 — an extra ₹10,000 of income costing ₹61,500 of tax. That absurdity is what marginal relief exists to prevent.
Surcharge on higher incomes
Above ₹50 lakh a surcharge applies on the tax itself, not on income.
| Total income | New regime | Old regime |
|---|---|---|
| ₹50L – ₹1 crore | 10% | 10% |
| ₹1 – ₹2 crore | 15% | 15% |
| ₹2 – ₹5 crore | 25% | 25% |
| Above ₹5 crore | 25% | 37% |
The cap at 25% is a real advantage of the new regime at the top end. Marginal relief applies at each surcharge threshold too, so crossing ₹50 lakh by a rupee never costs more than the rupee. Health and education cess of 4% is charged on tax plus surcharge, after all relief.
Which regime should you pick?
There is no universal answer, which is why this page computes both. The rough shape: the new regime wins unless your deductions are large. The break-even sits near ₹8 lakh of total deductions at most income levels — below that the new regime's lower rates win, above it the old regime's deductions do. A salaried person claiming the full ₹1.5 lakh under 80C, ₹25,000 under 80D and nothing else is almost always better off in the new regime.
Two practical points. The new regime is the default since FY 2023-24, so you must actively opt out to use the old one. And a salaried employee can switch each year at the time of filing, while someone with business income who opts out of the new regime can return to it only once.
Common questions
AY 2026-27 is the assessment year for income earned in FY 2025-26, which is the return being filed in 2026. Under the new regime: Nil up to ₹4 lakh, 5% to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh, 20% to ₹20 lakh, 25% to ₹24 lakh and 30% above. Budget 2026 kept them unchanged, so AY 2027-28 uses the same slabs.
The financial year is when you earn the income; the assessment year is the following year, when it is assessed and the return filed. Income earned between April 2025 and March 2026 is FY 2025-26, assessed in AY 2026-27. Tax portals usually ask for the assessment year.
Under the new regime: Nil up to ₹4 lakh, 5% to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh, 20% to ₹20 lakh, 25% to ₹24 lakh and 30% above that. Budget 2026 left these unchanged from FY 2025-26.
Yes, under the new regime, because the Section 87A rebate of ₹60,000 cancels the tax on taxable income up to ₹12 lakh. For a salaried person the ₹75,000 standard deduction pushes that to ₹12.75 lakh of gross salary.
Marginal relief caps your tax at the amount by which your income exceeds ₹12 lakh. At ₹12,10,000 the tax is limited to ₹10,000 plus cess rather than the full slab computation of roughly ₹61,500.
No. The new regime disallows 80C, 80D, HRA and most other deductions. It allows the standard deduction of ₹75,000 for the salaried and the employer's NPS contribution under 80CCD(2). That trade is the whole point of comparing the two.
The new regime has been the default since FY 2023-24. If you want the old regime you must opt out actively when filing. Salaried taxpayers can choose afresh each year; taxpayers with business income who leave the new regime can rejoin it only once.