Business
Income Tax Calculator: Old vs New Regime
Enter your annual income to see your tax under both regimes for FY 2026-27 or FY 2025-26, which one is lower and by how much. Budget 2026 kept the same slabs, so both years use the same rules.
Salary, business, interest or rent, before deductions.
Total of 80C (up to 1.5 lakh), 80D, HRA exemption, home loan interest and others. Leave empty if none.
80CCD(2). Allowed in both regimes. Optional.
Tax slabs for FY 2026-27 and FY 2025-26
Budget 2026 made no change, so both years use these rates. The new regime is the default unless you choose the old one.
| Taxable income | New regime | Old regime (below 60) |
|---|---|---|
| Up to ₹2.5 lakh | Nil | Nil |
| ₹2.5 to 4 lakh | Nil | 5% |
| ₹4 to 5 lakh | 5% | 5% |
| ₹5 to 8 lakh | 5% | 20% |
| ₹8 to 10 lakh | 10% | 20% |
| ₹10 to 12 lakh | 10% | 30% |
| ₹12 to 16 lakh | 15% | 30% |
| ₹16 to 20 lakh | 20% | 30% |
| ₹20 to 24 lakh | 25% | 30% |
| Above ₹24 lakh | 30% | 30% |
- Standard deduction: ₹75,000 in the new regime, ₹50,000 in the old, for salaried people and pensioners.
- Section 87A rebate: no tax up to ₹12 lakh of taxable income in the new regime (up to ₹60,000), and up to ₹5 lakh in the old (up to ₹12,500).
- Old regime for seniors: nil up to ₹3 lakh from age 60, and up to ₹5 lakh from age 80.
- Surcharge above ₹50 lakh, ₹1 crore and ₹2 crore (and ₹5 crore in the old regime, capped at 25% in the new), then 4% health and education cess on the total.
Old or new regime: how to choose
The new regime has lower rates and a larger standard deduction, but drops most deductions. The old regime only comes out ahead when your deductions are large: 80C investments, health insurance (80D), HRA, and interest on a home loan together.
Example: ₹15 lakh salary
- New regime: taxable after ₹75,000
- ₹14,25,000
- New regime tax with cess
- ₹97,500
- Old regime with ₹3.5 lakh of deductions
- taxable ₹11,00,000
- Old regime tax with cess
- ₹1,48,200
Salaried people choose the regime each year when filing their return. Business owners can switch back to the old regime only once.
Forgetting the standard deduction
It applies automatically to salary and pension; leave the box set to Yes if you are salaried.
Counting deductions in the new regime
80C, 80D and HRA do not reduce tax in the new regime. Employer NPS (80CCD(2)) is the main exception.
Comparing gross salary with taxable income
The ₹12 lakh limit is for taxable income, after the standard deduction.
Frequently asked questions
Is income up to 12 lakh tax-free?
Which regime is better for me?
Did Budget 2026 change the tax slabs?
What happens just above 12 lakh?
Does it include capital gains?
Last reviewed 9 October 2026. This tool runs in your browser; nothing you enter is stored or sent to Boostlix.