Income Tax Calculator: Old vs New Regime
Old regime or new? A straight answer for your numbers, not just two totals to squint at.
Only affects old regime exemption limits.
One of the few deductions the new regime still allows — your employer’s contribution to your NPS account (up to 14% of basic salary for most employees, 10% for others) reduces taxable income under both regimes. This is separate from your own NPS contribution, which only counts under the old regime.
The new regime doesn’t allow most of these deductions (beyond the standard deduction and NPS employer contribution above) — that’s the core trade-off this calculator is comparing.
Unlike self-occupied home loan interest, a rented-outproperty’s interest is deductible under both regimes with no cap — the difference is what happens if it creates a loss (see the breakdown below). Leave both at ₹0 if this doesn’t apply to you.
Based on your numbers, the new regime saves you ₹1,17,000 in tax this year compared to the other regime.
Taxable Income
Total Tax Payable
Estimated In-Hand (Annual)
Tax Deducted per Month
Estimated In-Hand (Monthly)
Effective Tax Rate
Slab-by-Slab Breakdown
Old Regime
| Slab | Rate | Income in Slab | Tax in Slab |
|---|---|---|---|
| ₹0 – ₹2,50,000 | 0% | ₹2,50,000 | ₹0 |
| ₹2,50,000 – ₹5,00,000 | 5% | ₹2,50,000 | ₹12,500 |
| ₹5,00,000 – ₹10,00,000 | 20% | ₹5,00,000 | ₹1,00,000 |
New Regime
| Slab | Rate | Income in Slab | Tax in Slab |
|---|---|---|---|
| ₹0 – ₹4,00,000 | 0% | ₹4,00,000 | ₹0 |
| ₹4,00,000 – ₹8,00,000 | 5% | ₹4,00,000 | ₹20,000 |
| ₹8,00,000 – ₹12,00,000 | 10% | ₹3,25,000 | ₹32,500 |
Why this calculator gives you a recommendation, not just two numbers
Most tax calculators compute both regimes and leave you to compare. The honest answer depends on how much you can genuinely claim in old-regime deductions — 80C investments, health insurance premiums, home loan interest, HRA — versus the new regime’s simpler, lower slabs with almost no deductions. This calculator runs both calculations against the FY 2026-27 slabs (including standard deduction, rebate, surcharge with marginal relief, and cess) and tells you directly which one wins for your numbers, and by how much.
What's included
- Standard deduction: ₹75,000 (new regime) or ₹50,000 (old regime), applied automatically.
- Employer’s NPS contribution under Section 80CCD(2), deductible under both regimes — one of the few deductions the new regime still allows.
- Rebate: taxable income up to ₹12,00,000 pays no tax under the new regime; up to ₹5,00,000 under the old regime — with marginal reliefjust above each threshold, so earning ₹1 more than the limit doesn’t suddenly jump your tax by tens of thousands. (This is why, famously, ₹12,00,001 taxable income under the new regime owes only about ₹1 in tax, not a full slab-rate bill.)
- Age-based exemption limits for senior and super senior citizens under the old regime.
- Surcharge for income above ₹50 lakh, with the same marginal relief principle applied at each surcharge threshold — and 4% health & education cess on all tax.
- Home loan interest on a let-out (rented) property, deductible under both regimes with no cap — different from self-occupied interest, which is old-regime only. If interest exceeds rental income, the old regime lets you offset up to ₹2,00,000 against other income this year; the new regime only allows carrying the loss forward against future rental income.
What's not included
This calculator assumes a single combined figure for “other” old-regime deductions (80C, 80D, HRA, home loan interest, etc.) rather than itemizing each section separately, since each has its own cap and eligibility rules. It’s built for a clear, fast comparison — for an actual tax filing, verify the final numbers with a tax professional or the official calculator at incometax.gov.in.