Income Tax Calculator
Compare old vs new tax regime side by side. See taxable income, tax liability, and monthly in-hand salary under both regimes for FY 2025-26 and FY 2026-27.
OptimizerEnter values and click Estimate & Optimize to see results
Formula
Old vs New regime — a 30-second decision tree
The new regime (default from FY 2023-24) gives you lower slab rates and a ₹75,000 standard deduction, but strips away almost every other deduction. The old regime keeps the deductions but hits you with higher slabs. The right answer depends on what you actually claim, not on what you could theoretically claim.
- Total deductions under ₹2 lakh: the new regime almost always wins. Stop calculating, file under new.
- Total deductions ₹2 – ₹3.75 lakh: close call. Run both — usually the new regime still edges ahead because of the ₹12 lakh 87A rebate cliff (FY 2026-27).
- Total deductions above ₹3.75 lakh: the old regime starts paying off, especially if you have HRA + 80C + home-loan interest stacked together.
The optimizer above (right of the form, after you click Estimate) does this comparison automatically and ranks the next move that saves the most rupees per ₹1 of additional outflow.
Section 80C — the realities most calculators skip
Section 80C has a ₹1.5 lakh cap, but several of those rupees are already being spent without you noticing — your EPF contribution from salary, your kid's school tuition fees, your home-loan principal repayment, and your existing LIC premium all count. Most salaried people are 60–80% used up before they ever buy ELSS or PPF.
The optimizer subtracts what you've entered from the cap and tells you the exact gap, the rupee tax saved at your marginal rate, and the ROI of plugging that gap before 31 March. If the gap is zero, no card appears — we don't waste your attention.
Worth knowing: NPS Section 80CCD(1B) is an additional ₹50,000 on top of 80C, and Section 80D health insurance is a separate ₹25,000 (up to ₹1 lakh if you cover senior-citizen parents).
Form 10-IEA — when you actually have to file it
Salaried individuals without business income can switch between regimes every financial year. You declare your choice to your employer for TDS purposes and confirm it in your ITR. No Form 10-IEA is required for this group.
If you have business or professional income, the rules tighten: the new regime is your default from AY 2024-25 onwards. To opt out and use the old regime, you must file Form 10-IEA before the ITR due date (typically 31 July). You can opt out only once and re-enter the new regime only once in your lifetime — so don't flip-flop.
Disclaimer
This calculator covers slab tax, surcharge with marginal relief, 4% cess, the Section 87A rebate, and post-23 Jul 2024 capital-gains rates (LTCG 12.5% above ₹1.25 L exemption, STCG 20% on equity). It runs entirely in your browser. For non-trivial filings (business income, foreign income, capital gains beyond equity, RSUs/ESOPs across borders), confirm with a chartered accountant.
Frequently Asked Questions
Which tax regime is better — old or new?
It depends on your deductions. If your total deductions (80C, 80D, HRA, NPS) exceed roughly ₹3.75 lakh, the old regime may save more. Otherwise, the new regime with its lower slab rates and ₹12.75 lakh zero-tax threshold (FY 2026-27, after standard deduction) is usually better.
Is this calculator free, and do I need to sign up?
Yes, it is completely free with no sign-up. There are no usage limits and no paywalls.
Are my inputs saved or sent to any server?
No. Every calculation happens entirely in your browser. Nothing you type is uploaded, logged, or shared with us or any third party.
What does the optimizer suggest?
After comparing both regimes, the optimizer ranks specific moves you can still make this financial year — switching regimes, topping up Section 80C, adding 80D health cover, NPS 80CCD(1B), or claiming HRA properly. Each card shows the rupee tax saved, additional outflow, and ROI.
How are surcharge and cess calculated?
Surcharge applies on income above ₹50 lakh, ₹1 cr, ₹2 cr, and ₹5 cr (the last band only under the old regime). The new regime caps surcharge at 25%. Marginal relief is applied automatically when you cross a band by a small amount. Health and education cess of 4% is added to tax + surcharge.
Are LTCG and STCG handled separately?
Yes. Long-term capital gains on equity (over the ₹1.25 lakh exemption) are taxed at 12.5%, and short-term gains on equity at 20% — both as per the post-23 Jul 2024 rules. The 87A rebate does not apply to special-rate gains.
Can I switch regimes every year?
Salaried taxpayers without business income can switch every year by indicating their choice to the employer (and through the ITR). Taxpayers with business income are restricted — they can opt out of the new regime only once and re-enter once.
What is the deadline for these tax-saving moves?
Most Section 80C and 80D investments must be completed by 31 March of the financial year. Health insurance premiums, ELSS, PPF top-ups, NPS contributions, and tuition fees count if paid (and credited) by that date.