Income Tax Calculator

Compare the Old and New Tax Regimes instantly, as per the Income Tax Act, 2025. Precise work, done in less time.

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Income
Gross annual salary, before any deduction
Fills in the comparison below. Tap again any time after changing details.
TAX REGIME COMPARISON - TAX YEAR 2026-27
ParameterNew RegimeOld Regime
Fill in your details above, then tap Calculate Tax to see your comparison.
Figures above show income tax liability only. They don't account for other salary deductions (PF, loan EMIs, insurance premiums deducted at source, etc.), so this isn't your full take-home pay.
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Old vs New, in short

The New Regime gives wider slabs and a bigger standard deduction but drops almost every exemption. The Old Regime keeps HRA, Section 123 and health insurance, taxed on narrower slabs. Which wins depends entirely on how much you can actually claim.

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How the comparison works

Both columns are computed from the same gross salary and the same inputs. Old Regime subtracts HRA, Section 123, health insurance and Professional Tax before applying its slabs. New Regime applies only the standard deduction and employer NPS before its own slabs.

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Worked Example

Rs. 12,00,000 gross with typical HRA and Section 123 claims: Old Regime tax is about Rs. 54,600, New Regime about Rs. 60,660. The full breakdown is below.

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What this does not cover

House property income, capital gains, business or professional income, TDS already deducted, advance tax paid, Section 89 relief, and interest or fees for late filing are all outside this calculator's scope.

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Regime Switching

Salaried employees can choose either regime freely each financial year when filing their return. The choice made with an employer for TDS purposes is not final - it can be corrected at filing time.

Worked example - Rs. 12,00,000 gross salary

Basic + DA Rs. 6,00,000, HRA received Rs. 2,40,000, rent paid Rs. 2,16,000 in a metro city, Section 123 investments Rs. 1,50,000, health insurance premium Rs. 20,000, and employer NPS contribution Rs. 60,000.

Old Regime

HRA exemption Rs. 2,16,000 (least of rent minus 10% of salary, 50% of salary, or HRA received), Section 123 deduction Rs. 1,50,000, health insurance Rs. 20,000, standard deduction Rs. 50,000, employer NPS Rs. 60,000. Taxable income comes to roughly Rs. 7,04,000, with tax of approximately Rs. 54,600 including cess.

New Regime

No HRA or Section 123 deduction available. Standard deduction Rs. 75,000 and employer NPS Rs. 60,000 still apply. Taxable income comes to roughly Rs. 10,65,000, with tax of approximately Rs. 60,660 including cess.

For this profile the Old Regime saves roughly Rs. 6,000 - almost entirely because of the HRA and Section 123 claims. Someone with the same salary but no rent and no investments would see the New Regime win instead. Enter your own numbers above to see which side wins for you.

Frequently asked questions

Which is better, the old tax regime or the new tax regime?

It depends on how much you claim in deductions. The new regime has wider slabs and a higher standard deduction but allows almost none of the old regime's exemptions, so it usually wins for people with few deductions. The old regime can still be better if you claim substantial HRA, Section 123 investments and health insurance. This calculator computes both side by side for FY 2026-27 so you can compare your own numbers.

What if I have no deductions at all?

With no HRA, Section 123, or health insurance claims, the New Regime almost always comes out ahead - its standard deduction is higher (Rs. 75,000 against Rs. 50,000) and its slabs are wider, so there is usually nothing the Old Regime can offer to compensate.

Does this calculator account for TDS already deducted or advance tax paid?

No. This tool estimates your total income tax liability for the year, not what remains payable after tax already withheld by an employer or paid in advance. Subtract whatever has already been deducted or paid to see what is still due.

Is Professional Tax deductible under the New Regime?

No. Professional Tax is only deductible from salary income under the Old Regime. It is levied by the state, not the centre, so it does not apply at all in Delhi, Haryana, Uttar Pradesh, Rajasthan and other states that do not levy it.

Can I switch regimes every year?

If you have only salary income, yes - you can choose either regime when filing your return each year, regardless of which one your employer used for TDS. The choice becomes restricted only if you also have business or professional income.

Before you rely on these figures

This calculator gives a quick comparison of your likely tax under the old and new regimes for Tax Year 2026-27. It covers the deduction heads shown above and assumes a full 12-month year on a single salary income.

It does not cover income from house property, capital gains, business or profession, or other sources, and it does not account for TDS already deducted, advance tax paid, relief under Section 89, or interest and fees for late filing. Your actual liability is determined by the Income-tax Act, 2025 and the rules made under it.

For filing, or where your situation is not a straightforward salaried one, have the numbers confirmed by a chartered accountant.