Income Tax Calculator: Old vs New Regime (FY 2025-26 / AY 2026-27)
Compare old and new tax regime for salaried individuals and see which saves more tax.
Income Tax Calculator (Old vs New Regime)
Indicative estimate. Verify with official sources.
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Slabs used (FY 2025-26, AY 2026-27)
| New regime | Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4-8 lakh | 5% |
| ₹8-12 lakh | 10% |
| ₹12-16 lakh | 15% |
| ₹16-20 lakh | 20% |
| ₹20-24 lakh | 25% |
| Above ₹24 lakh | 30% |
Rebate under section 87A makes income up to ₹12 lakh tax-free in the new regime (with marginal relief just above). Standard deduction ₹75,000 (new) or ₹50,000 (old) for salaried. Budget 2026-27 reportedly left slabs unchanged for FY 2026-27.
What this calculator ignores
Special-rate capital gains, business income, surcharge marginal relief, and advanced deductions are not modelled. Use it for a first estimate.
Income-tax Act 2025
The Income-tax Act, 2025 took effect on 1 April 2026 and applies from tax year 2026-27 onwards. Returns for FY 2025-26 (AY 2026-27) are governed by the Income-tax Act, 1961.
Income Tax Calculator (Old vs New Regime) FAQs
Which regime is better, old or new?
The new regime usually wins when your deductions are small. The old regime can win if you claim substantial HRA, 80C, home loan interest and other deductions. Use the calculator and confirm with an expert.
Is income up to ₹12 lakh really tax free?
Under the new regime, rebate under section 87A effectively makes taxable income up to ₹12 lakh tax-free for residents, excluding special-rate incomes.
Can NRIs use the 87A rebate?
No. The rebate is for resident individuals. NRIs should use our NRI tax tools and get expert advice.
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