Income Tax Calculator (New vs Old Regime)

Compare tax under both regimes for FY 2026-27, including rebate, surcharge, cess and marginal relief.

Formula

tax = slab tax − 87A rebate + surcharge + 4% cess

Tips

The new regime is the default. You must actively opt for the old one, and salaried taxpayers can switch each year while business income generally cannot.
Under the new regime, taxable income up to ₹12 lakh attracts no tax because of the ₹60,000 rebate under Section 87A. With the ₹75,000 standard deduction, a salary up to ₹12.75 lakh is effectively tax-free.
The rebate does not apply to special-rate income such as capital gains under Sections 111A and 112A, so those remain taxable even below ₹12 lakh.
Marginal relief stops a small rise above ₹12 lakh producing a disproportionate jump in tax. This calculator applies it.
The old regime only wins when your deductions are large — typically above ₹4–5 lakh of 80C, 80D, HRA and home-loan interest combined.

Frequently asked questions

Which regime should I choose?

Enter your actual deductions above and compare. As a rough guide, the new regime wins for most people with modest deductions, while the old regime can still win for those with a home loan, substantial HRA and full 80C use. Run your own numbers rather than following a rule of thumb.

Is this an official calculation?

No. It applies the published slab structure and common reliefs, but ignores many situation-specific provisions. The Income Tax Department publishes its own calculator, and for anything consequential you should confirm with a chartered accountant.