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Income Tax Calculator (India) - Old vs New Regime

Compare your tax liability under the old and new regimes side by side.

Include 80C (up to ₹1.5L), 80D, HRA exemption, home loan interest, etc. Only applies to the old regime.

What is it?

This calculator compares your income tax liability under India's old and new tax regimes side by side, so you can see which one leaves you with more take-home pay for your specific income and deductions.

Formula

Taxable Income = Gross Income − Standard Deduction − Other Deductions (old regime only)
Tax = Progressive slab tax + 4% Health & Education Cess

Formula Explanation

Both regimes apply progressive tax slabs — higher income is taxed at higher rates only on the portion within each slab. The new regime offers lower rates and a ₹75,000 standard deduction but doesn't allow most other deductions (like 80C or HRA). The old regime has higher rates but lets you reduce taxable income with deductions, which is why it can still work out cheaper for people with significant 80C, HRA, or home loan claims.

Example Calculation

On a ₹12,00,000 gross income with ₹1,50,000 in old-regime deductions, the new regime currently results in zero tax (income at or below the ₹12L rebate threshold), while the old regime would owe tax on a ₹10,00,000 taxable income after deductions — making the new regime the better choice here.

How to Use

  1. Enter your gross annual income (CTC minus employer PF/gratuity contributions, if known).
  2. Enter your total deductions and exemptions for the old regime — 80C, 80D, HRA exemption, home loan interest, etc.
  3. Compare the taxable income, tax, and take-home pay shown for both regimes.
  4. The regime with the lower total tax is highlighted automatically.

Benefits

  • Shows both regimes side by side instead of forcing you to calculate each separately.
  • Automatically applies the current standard deduction and rebate thresholds for each regime.
  • Highlights which regime saves you more money for your specific numbers.

Use Cases

  • Deciding which tax regime to select during employer tax declaration season.
  • Checking whether increasing 80C investments would make the old regime worthwhile.
  • Estimating take-home salary before accepting a new job offer.

What Your Result Means

The regime with the lower total tax gives you higher take-home pay. If your deductions are small, the new regime usually wins due to its lower rates and standard deduction. If you have substantial 80C, HRA, or home loan interest deductions, the old regime can still come out ahead.

Tips

  • Re-run this calculation whenever your deductions change significantly, such as taking a new home loan or increasing 80C investments.
  • Remember the new regime's rebate makes tax zero up to ₹12,00,000 taxable income — a major factor for mid-range salaries.
  • Salaried employees can switch regimes every year when filing returns; only business income has restrictions on switching.

Common Mistakes

  • Forgetting that most deductions (80C, HRA, LTA, home loan interest) don't apply under the new regime.
  • Comparing gross salary instead of taxable income after standard deduction and applicable exemptions.
  • Not accounting for the 4% cess on top of the base slab tax when comparing totals.

FAQs

Which regime should I choose?

It depends on your deductions — if your 80C, HRA, and other old-regime deductions are high relative to your income, the old regime may still be cheaper; otherwise the new regime with its lower rates usually wins.

Can I switch between regimes every year?

Salaried individuals without business income can choose either regime each financial year when filing their return, regardless of what they declared to their employer.

Does this include surcharge for very high incomes?

No, this calculator covers the base slab tax and 4% cess only. Surcharge applies additionally above ₹50 lakh income and is not included here.

What is the rebate under Section 87A?

It's a rebate that makes tax liability zero if taxable income is at or below a threshold — currently ₹12,00,000 under the new regime and ₹5,00,000 under the old regime.

Tax slabs, rebate limits, and cess rates are based on the rules as of this tool's last update and may change with future budgets — verify current rules before filing.

Last updated: July 26, 2026