Income Tax Calculator Online

About Income Tax Calculator Online

Why You Need an Income Tax Calculator for Regime Comparison

This income tax calculator exists because every year, millions of Indian salaried employees face the exact same question. Every year, millions of Indian salaried employees face the exact same question: which tax regime will actually save me more money? This calculator answers it directly. You enter your gross annual salary alongside your eligible deductions, and it works out your tax liability under both the New and Old regimes side by side.

Instead of working through both sets of slabs by hand, the tool runs both calculations from a single income input, highlights whichever regime results in lower tax, and shows the exact rupee amount you'd save — enough clarity to declare your regime preference to your employer with confidence.

The New vs. Old Tax Regime Slabs for FY 2025-26 (AY 2026-27)

The Old Tax Regime charges higher slab rates but lets you claim a wide range of exemptions and deductions under Chapter VI-A — home loan EMI, EPF and PPF contributions, ELSS investments, health insurance premiums, HRA. The New Tax Regime (under Section 115BAC) works on a different philosophy entirely: significantly lower slab rates and a higher basic exemption, but almost none of those traditional deductions survive.

Under the New Regime, income up to ₹4,00,000 is entirely tax-free. From there: 5% up to ₹8L, 10% up to ₹12L, 15% up to ₹16L, 20% up to ₹20L, 25% up to ₹24L, and 30% above that. Salaried taxpayers also get a standard deduction of ₹75,000 (up from ₹50,000 in earlier years), and Section 87A gives a full rebate of up to ₹60,000 for taxable income up to ₹12,00,000. Stack the standard deduction on top of that rebate threshold, and salaried employees earning up to ₹12,75,000 end up owing zero income tax under the New Regime.

Good to know

Under the New Regime for FY 2025-26, a ₹75,000 standard deduction plus a Section 87A rebate of up to ₹60,000 (on taxable income up to ₹12,00,000) means salaried employees earning up to ₹12,75,000 pay zero income tax.

Under the Old Regime, the basic exemption is ₹2,50,000 for individuals under 60, ₹3,00,000 for senior citizens (60-80), and ₹5,00,000 for super senior citizens (80+). Above that: 5% up to ₹5L, 20% up to ₹10L, and 30% beyond. The standard deduction here is ₹50,000, and Section 87A caps out at a ₹12,500 rebate for taxable income up to ₹5,00,000 — making income up to that point effectively tax-free too, just at a much lower threshold than the New Regime.

Both regimes add a 4% Health and Education Cess on top of the computed tax, regardless of age or filing status.

Watch for this

Tax slabs and rebate limits change with nearly every Union Budget. The figures here reflect FY 2025-26 (AY 2026-27). If you're reading this well after publication, cross-check against the current official Income Tax Department rules before filing.

Old Regime Deductions, Explained One by One

To get an accurate Old Regime comparison, you need to know what each deduction field in the calculator actually covers.

• Section 80C — up to ₹1,50,000 for EPF contributions, PPF, ELSS mutual funds, life insurance premiums, NSC, home loan principal repayment, and children's tuition fees. The most widely used tax-saving provision in India, and often the first one people max out.
• Section 80D — health insurance premiums: up to ₹25,000 for yourself, spouse, and dependent children (₹50,000 if you or your spouse are senior citizens), plus an additional ₹25,000 for parents' health insurance (₹50,000 if your parents are senior citizens).
• HRA exemption — for salaried employees in rented housing, exempt up to the smallest of: actual HRA received, rent paid minus 10% of Basic+DA, or 50% of Basic+DA in metro cities (Delhi, Mumbai, Kolkata, Chennai) / 40% elsewhere.
• Section 80CCD(1B) — an extra ₹50,000 deduction for voluntary NPS contributions, on top of (not counted within) the ₹1,50,000 Section 80C limit.
• Section 24(b) — home loan interest on a self-occupied property, capped at ₹2,00,000 a year.

The One Deduction That Survives in the New Regime: Employer NPS

Almost every Chapter VI-A deduction disappears under the New Regime — except one. Employer contributions to your NPS account, under Section 80CCD(2), remain deductible in both regimes.

The cap depends on your regime and employer type. Central Government employees get up to 14% of Basic+DA either way. For private-sector employees, the cap is 14% if you're on the New Regime (raised from 10% by Budget 2024, effective FY 2024-25), but stays at 10% if you're still on the Old Regime.

This is genuinely useful structuring: if your employer routes part of your CTC through NPS contributions, it reduces your taxable salary even under the New Regime. Say your Basic Salary is ₹10,00,000 and your employer contributes 14% (₹1,40,000) to NPS — your taxable salary drops to ₹8,60,000 before the ₹75,000 standard deduction even applies.

Can You Switch Regimes Every Year?

It depends on your income source. If you're salaried with no business or professional income, you have full flexibility — declare a regime preference to your employer at the start of the year for TDS purposes, and change your mind when you actually file your ITR if it works out better.

If you have business or professional income, the rules tighten. You can opt for the Old Regime only once in a lifetime as a business-income taxpayer; once you switch back to the New Regime after that, you're locked into it for good unless you stop having business income entirely.

Marginal Relief: What Happens Just Above the ₹12 Lakh Threshold

A common worry: does earning slightly more than ₹12,00,000 under the New Regime wipe out the entire rebate and trigger a huge tax jump? Without any protection, yes — losing the full ₹60,000 rebate over an extra ₹10,000 of income would be a genuinely unfair cliff.

That's exactly what marginal relief under Section 87A prevents. If your taxable income comes to ₹12,10,000, marginal relief caps your tax so it never exceeds the amount you earned above the ₹12,00,000 threshold — in this case, capping the base tax at ₹10,000 rather than the full slab-calculated amount. This relief applies specifically to New Regime taxpayers with total income up to ₹12.75 lakh; above that, it phases out.

How Much Do You Actually Need to Claim for the Old Regime to Win?

Because the New Regime's rates are lower and its tax-free threshold reaches ₹12.75 lakh for salaried earners, the Old Regime only comes out ahead once your total deductions cross a real break-even point. For gross income in the ₹12-15 lakh range, that threshold generally sits around ₹3.75-4.25 lakh in combined deductions. At higher incomes — say ₹20 lakh or ₹25 lakh — the deduction total needed to make the Old Regime worthwhile climbs further, often into the ₹5-7 lakh range.

Unless you're carrying a substantial home loan, a high HRA exemption, and have maxed out 80C, 80D, and NPS, the New Regime tends to come out cheaper for most salaried earners today.

Mistakes That Skew Your Comparison

Watch for this

Forgetting to include the ₹75,000 standard deduction when doing a manual New Regime estimate is a common one — it makes the New Regime look worse than it actually is. On the Old Regime side, estimating your HRA exemption instead of using your real rent receipts tends to overstate how much you'd save, making the Old Regime look artificially cheaper than it would be with your real numbers.

A Full Worked Example: ₹15 Lakh Income Under Both Regimes

Example

A salaried employee earns ₹15,00,000 gross, with ₹3,25,000 in total Old Regime deductions (₹50,000 standard deduction + ₹1.5L under 80C + ₹25k under 80D + ₹50k NPS + ₹50k HRA). Under the New Regime, taxable income comes to ₹14,25,000 after the ₹75,000 standard deduction: 0% on the first ₹4L, 5% on the next ₹4L (₹20,000), 10% on the next ₹4L (₹40,000), and 15% on the remaining ₹2,25,000 (₹33,750) — ₹93,750 base tax, ₹97,500 after 4% cess. Under the Old Regime, taxable income is ₹11,75,000: 5% on ₹2.5L-5L (₹12,500), 20% on ₹5L-10L (₹1,00,000), and 30% on the remaining ₹1,75,000 (₹52,500) — ₹1,65,000 base tax, ₹1,71,600 after cess. The New Regime saves this employee ₹74,100 a year, even with a solid ₹3.25 lakh in active deductions.

How to Use the Income Tax Calculator

• Enter your gross annual salary.
• Enter your applicable deductions — 80C, 80D, NPS, HRA, home loan interest — if you want a fair Old Regime comparison.
• Read the side-by-side results: the calculator highlights the cheaper regime and the exact amount you'd save.

Is My Data Safe?

Every calculation runs locally in your browser using client-side JavaScript.

Yes

Your income figures, deduction details, and tax computations are never transmitted to a server or saved anywhere.

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