Income Tax Calculator — Old vs New Regime
Compare tax under the old and new regimes side by side for FY 2025-26 (AY 2026-27), with rebate, surcharge and cess.
| New | Old | |
|---|---|---|
| Taxable income | ₹14,25,000 | ₹12,50,000 |
| Tax on slabs | ₹93,750 | ₹1,87,500 |
| Section 87A rebate | — | — |
| Surcharge | — | — |
| Health & education cess (4%) | ₹3,750 | ₹7,500 |
| Total tax | ₹97,500 | ₹1,95,000 |
| Average rate | 6.5% | 13% |
Assumes a resident individual with only ordinary income. Surcharge includes marginal relief; tax is rounded to the nearest ₹10.
This calculator gives an estimate for general guidance and is not tax or legal advice. Rates, limits and the way they apply change with the law and the facts; confirm your figures with a Chartered Accountant before relying on them.
Old regime or new regime?
For FY 2025-26 (assessment year 2026-27) the new regime is the default. It has lower slab rates and almost no deductions, while the old regime keeps deductions and exemptions such as 80C, 80D, HRA and home-loan interest. Which one costs less depends on how much you can actually deduct.
| New regime slab | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Under the new regime the standard deduction is ₹75,000 and income up to ₹12,00,000 pays no tax after the section 87A rebate, with marginal relief just above that. The old regime has a ₹50,000 standard deduction, a basic exemption of ₹2,50,000 (₹3,00,000 for seniors, ₹5,00,000 for super seniors) and a rebate that makes income up to ₹5,00,000 tax-free.
Surcharge applies above ₹50 lakh (10%), ₹1 crore (15%) and ₹2 crore (25%); the old regime adds 37% above ₹5 crore. Cess is 4% on tax plus surcharge.
Our partners advise on this every year — see Income tax planning and returns or contact an office near you.
Common questions
Which regime should I choose?
Run both. As a rough guide the old regime wins only when your total deductions and exemptions are large — for a salaried person, usually well above ₹3–4 lakh on top of the standard deduction — and the answer shifts with income.
Can business owners switch every year?
Individuals with business or professional income can opt out of the new regime only once and then generally stay in the old one, so the choice deserves more care than it does for salaried taxpayers.
Why is capital gains income left out?
Capital gains and a few other incomes are taxed at special rates and follow different rules. Enter ordinary income here and ask us to work out the rest.
Are these rates for the current year?
They are for FY 2025-26, the year returns are filed for now. Later years may change; the page will be updated when they do.