India / Income tax
India Income Tax Calculator: New and Old Regimes
Compare annual tax, monthly TDS and effective rates for resident salaried individuals in FY 2026–27 or FY 2025–26. Include HRA, eligible deductions, rebate and surcharge relief.
India Income Tax Calculator: New and Old Regimes: Enter your salary, allowances and deductions to compare your income tax under the new and old regimes for FY 2026-27 (or 2025-26), and see which costs less. It includes the standard deduction, the rebate and its marginal relief, HRA exemption, 80C and 80D-type deductions, home-loan interest, surcharge with marginal relief and the 4% cess, shown in lakh and crore. Runs 100% locally in your browser with zero server file uploads.
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For resident individuals with salary income. Enter annual amounts, including HRA in gross salary. Special-rate income, capital gains, business income and agricultural income are excluded.
From 1 April 2026, the Income-tax Act, 2025 uses tax year 2026–27. New-regime rates are in section 202, rebate in section 156, and standard deduction in section 19.
Old-regime deductions and exemptions
Investments are capped at ₹1,50,000. Health deductions under section 126 are capped at ₹25,000 per family/parents group, or ₹50,000 for an eligible senior group. Preventive checkups share a ₹5,000 cap inside those limits. Enter eligible non-cash premiums; uninsured senior medical expenses are excluded.
HRA exemption is the least of HRA received, rent minus 10% of (basic pay + eligible DA + commission), and the applicable 40% or 50% salary limit. Use amounts for the same occupancy period. Rule 279 adds Hyderabad, Pune, Ahmedabad and Bengaluru to the 50% group from FY 2026–27.
Otherwise the self-occupied interest cap is ₹30,000. Let-out property, carry-forward losses and other deductions are excluded.
Annual saving with these inputs: ₹1,59,900.00.
| Item | New regime | Old regime |
|---|---|---|
| Standard deduction | ₹75,000.00 | ₹50,000.00 |
| Total deductions and exemptions applied | ₹75,000.00 | ₹50,000.00 |
| Taxable income, rounded | ₹14,25,000.00 | ₹14,50,000.00 |
| Tax before rebate | ₹93,750.00 | ₹2,47,500.00 |
| Rebate | ₹0.00 | ₹0.00 |
| Rebate marginal relief | ₹0.00 | ₹0.00 |
| Surcharge before relief | ₹0.00 | ₹0.00 |
| Surcharge marginal relief | ₹0.00 | ₹0.00 |
| Health & Education Cess (4%) | ₹3,750.00 | ₹9,900.00 |
| Annual tax, rounded | ₹97,500.00 | ₹2,57,400.00 |
| Monthly TDS estimate (annual ÷ 12) | ₹8,125.00 | ₹21,450.00 |
| Effective tax rate on gross salary | 6.5% | 17.16% |
Old-regime amounts before the available-income limit: HRA ₹0.00; investments ₹0.00; health ₹0.00; home interest ₹0.00.
| Taxable income band | Rate | Tax |
|---|---|---|
| ₹0.00 to ₹4,00,000.00 | 0% | ₹0.00 |
| ₹4,00,000.00 to ₹8,00,000.00 | 5% | ₹20,000.00 |
| ₹8,00,000.00 to ₹12,00,000.00 | 10% | ₹40,000.00 |
| ₹12,00,000.00 to ₹16,00,000.00 | 15% | ₹33,750.00 |
| ₹16,00,000.00 to ₹20,00,000.00 | 20% | ₹0.00 |
| ₹20,00,000.00 to ₹24,00,000.00 | 25% | ₹0.00 |
| Above ₹24,00,000.00 | 30% | ₹0.00 |
| Taxable income band | Rate | Tax |
|---|---|---|
| ₹0.00 to ₹2,50,000.00 | 0% | ₹0.00 |
| ₹2,50,000.00 to ₹5,00,000.00 | 5% | ₹12,500.00 |
| ₹5,00,000.00 to ₹10,00,000.00 | 20% | ₹1,00,000.00 |
| Above ₹10,00,000.00 | 30% | ₹1,35,000.00 |
Total income and final tax are rounded to the nearest ₹10 after ignoring paise. Rebate and surcharge marginal relief are applied before 4% cess. Monthly TDS is annual tax divided by 12; employer withholding can differ.
An estimate for planning, not tax advice; use the Income Tax Department’s Income and Tax Calculator for the official calculation.
Tax years, Acts and regime rates
Income-tax Act, 2025 (Act 30 of 2025), as amended by Finance Act 2026: https://www.incometaxindia.gov.in/documents/d/guest/income_tax_act_2025_as_amended_by_fa_act_2026-pdf . Section 1 brings the Act into force on 1 April 2026. For tax year 2026–27, section 202 replaces section 115BAC and section 156 replaces section 87A. Section 19 provides standard deductions of ₹75,000 under the new regime and ₹50,000 otherwise. The former AY 2027–28 label refers to this same income period.
Finance Act, 2026 (Act 4 of 2026), section 3, First Schedule Part I-B: https://www.incometaxindia.gov.in/documents/d/guest/finance-act-2026-pdf-1 . Old-regime exemptions depend on age; surcharge is 10%, 15%, 25% and, in the old regime only, 37%, above ₹50 lakh, ₹1 crore, ₹2 crore and ₹5 crore respectively. Surcharge marginal relief applies before 4% Health & Education Cess.
For FY 2025–26 (AY 2026–27), section 115BAC(1A)(iii), as amended by Finance Act 2025: https://www.incometaxindia.gov.in/w/section-115bac-6 . CBDT, Highlights to Finance Act 2025, pages 2–3: https://www.incometaxindia.gov.in/documents/20117/14614766/Highlights-to-Finance-Act-2025.pdf/da0e29ac-e70f-f705-824e-a8efe2460a55?t=1767817037874 . The new slabs run from nil up to ₹4 lakh through 5%, 10%, 15%, 20%, 25% and 30%, with ₹4 lakh bands through ₹24 lakh.
Deductions and housing
Income Tax Department, Salaried Individuals for AY 2026–27: https://www.incometax.gov.in/iec/foportal/help/individual/return-applicable-1 . Section 80C investments are capped at ₹1,50,000; section 80D health deductions are capped separately for family and parents at ₹25,000 or ₹50,000 for eligible seniors, with preventive checkups sharing ₹5,000 within those limits. Qualifying self-occupied home interest is capped at ₹2,00,000, otherwise ₹30,000.
Under the Income-tax Act, 2025, these references become section 123 (investments), section 126 (health) and section 22 (home interest): https://www.incometaxindia.gov.in/documents/d/guest/income_tax_act_2025_as_amended_by_fa_act_2026-pdf . HRA is under Schedule III, table item 11. Notified Income-tax Rules, 2026, Notification 22/2026, rule 279: https://www.incometaxindia.gov.in/documents/d/guest/en-notified-it-rules-2026-20-03-2026-pdf . The 50% HRA group now includes Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru. Other locations use 40%.
For FY 2025–26, section 10(13A) and rule 2A use only Mumbai, Kolkata, Delhi and Chennai in the 50% group. HRA exemption is the least of the allowance, rent less 10% of eligible salary, and the location percentage. Salary includes basic, eligible DA and turnover-based commission. CBDT, Treatment of income from different sources: https://www.incometaxindia.gov.in/w/treatment-of-income-from-different-sources-1 .
Rebate, rounding and official calculator
The new-regime resident rebate covers taxable income up to ₹12,00,000, capped at ₹60,000; marginal relief limits tax just above the threshold to the income excess. The old-regime rebate is capped at ₹12,500 for income up to ₹5,00,000. Section 156 and section 516 (rounding to ₹10): https://www.incometaxindia.gov.in/documents/d/guest/income_tax_act_2025_as_amended_by_fa_act_2026-pdf .
CBDT, Budget 2025 FAQs, questions 15–17: https://incometaxindia.gov.in/Documents/Budget/budget-2025/faqs-budget-2025.pdf . The worked example has taxable income ₹12,10,000, slab tax ₹61,500, marginal relief ₹51,500 and tax before cess ₹10,000. The comparison table also covers ₹12,50,000, ₹12,70,000 and ₹12,75,000.
An estimate for planning, not tax advice; use the Income Tax Department’s Income and Tax Calculator for the official calculation: https://www.incometax.gov.in/iec/foportal/income-tax-calculator . Monthly TDS here means annual tax divided by 12; the comparison covers resident salary income only.
How to use it
- Choose the financial year and age group, and enter annual gross salary including HRA.
- Enter eligible old-regime investments, health payments, housing interest and HRA details.
- Compare both regimes, the lower-tax option, tax by slab and annual tax divided by 12.
Privacy & limitations
Income and deduction amounts are calculated in your browser. Nothing is uploaded.
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Frequently asked questions
Which law applies in FY 2026–27?
The Income-tax Act, 2025 takes effect on 1 April 2026. Section 202 covers the new regime, section 156 the rebate and section 19 standard deduction. The new term is tax year 2026–27; AY 2027–28 is the former naming convention for the same income period.
Can salary of ₹12,75,000 give zero tax?
For the supported resident salary-only case, the new-regime ₹75,000 standard deduction leaves ₹12,00,000 taxable income. The rebate then removes tax before cess. Special-rate income and other income can change that result.
How does HRA change between the years?
From FY 2026–27 the 50% salary limit applies to Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru. In FY 2025–26 only the first four qualify. Other locations use 40%, and actual HRA and rent-minus-10%-of-salary limits still apply.
Does the lower-tax result decide whether I can switch regimes?
No. It compares the inputs entered. Eligibility, election deadlines and restrictions on switching are separate. Business income, capital gains, agricultural income and other deductions are outside this salary-only estimate.
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