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Income Tax Calculator

Find out whether the old or the new tax regime leaves you paying less for Tax Year 2026-27 (April 2026 to March 2027). Enter your salary and the deductions you actually claim, such as HRA, 80C investments, health insurance and home loan interest, and see both calculations side by side, slab by slab.

हिंदी में निर्देशInstructions in Hindi

पुरानी और नई टैक्स व्यवस्था में कौन बेहतर है, कैसे देखें

  1. 1"Annual salary (gross)" में अपनी साल भर की सैलरी डालें (HRA और भत्ते मिलाकर)।
  2. 2किराये पर रहते हैं और HRA मिलता है, तो "I live on rent and get HRA" पर टिक करें और बेसिक, HRA और किराया भरें।
  3. 380C, हेल्थ इंश्योरेंस और होम लोन ब्याज जैसी कटौतियाँ भरें, जो आप सच में क्लेम करते हैं।
  4. 4ऊपर दिखेगा कि कौन सी व्यवस्था बेहतर है और साल में कितना टैक्स बचेगा।

ध्यान रखें

  • नई व्यवस्था में ₹12.75 लाख तक की सैलरी पर टैक्स शून्य है।
  • HRA के लिए किराये की रसीदें Rent Receipt Generator से बना सकते हैं।

How to use this calculator

  1. Enter your gross yearly salary before tax, including HRA and allowances, and any other income such as FD interest.
  2. Choose your age. Senior citizens get a higher tax-free limit in the old regime.
  3. If you live on rent and get HRA, tick the box and enter your basic pay, HRA and rent to work out the exemption.
  4. Fill in the deductions you will really claim: 80C, health insurance, home loan interest, your own NPS and professional tax.
  5. Read which regime is better, how much it saves, and the level of deductions at which the old regime would win.

Formula

Tax = Slab tax on (Income − Standard deduction − Deductions) − Rebate + Surcharge + 4% cess

Income
salary plus other income taxed at slab rates
Standard deduction
₹75,000 (new) or ₹50,000 (old), for salary only
Deductions
HRA, 80C, 80D and so on in the old regime; only employer NPS in the new
Rebate
Section 87A: up to ₹60,000 (new) or ₹12,500 (old)

Surcharge applies above ₹50 lakh of income, with marginal relief. The 4% health and education cess is charged on tax plus surcharge.

Worked example

A salary of ₹15,00,000 in Pune, with basic pay of ₹6,00,000, HRA of ₹3,00,000 and rent of ₹25,000 a month. 80C investments of ₹1,50,000, health insurance of ₹25,000 and professional tax of ₹2,500.

  1. HRA exemptionleast of ₹3,00,000, ₹2,40,000 and ₹3,00,000 = ₹2,40,000
  2. Old regime taxable income15,00,000 − 50,000 − 4,17,500 = ₹10,32,500
  3. Old regime tax₹1,22,250 + 4% cess = ₹1,27,140
  4. New regime taxable income15,00,000 − 75,000 = ₹14,25,000
  5. New regime tax₹93,750 + 4% cess = ₹97,500

The new regime saves ₹29,640 a year. The old regime would only win if deductions reached about ₹5,43,800, for example by adding a home loan.

New regime slabs for Tax Year 2026-27

The new regime is the default. It has lower rates and a ₹75,000 standard deduction for salaried people, but almost no other deductions. Budget 2026 kept the same slabs as the year before:

A rebate of up to ₹60,000 under Section 87A (Section 156 of the new Act) wipes out the tax when taxable income is ₹12 lakh or less. With the standard deduction, that means a salary of up to ₹12.75 lakh pays no income tax. Just above ₹12 lakh, marginal relief makes sure the tax is never more than the income above ₹12 lakh.

  • Up to ₹4 lakh: nil
  • ₹4 lakh to ₹8 lakh: 5%
  • ₹8 lakh to ₹12 lakh: 10%
  • ₹12 lakh to ₹16 lakh: 15%
  • ₹16 lakh to ₹20 lakh: 20%
  • ₹20 lakh to ₹24 lakh: 25%
  • Above ₹24 lakh: 30%

Old regime slabs and the deductions it allows

The old regime taxes income from ₹2.5 lakh at 5%, from ₹5 lakh at 20% and above ₹10 lakh at 30%. People aged 60 to 79 pay nothing up to ₹3 lakh, and those 80 or older nothing up to ₹5 lakh. The standard deduction is ₹50,000 and the rebate makes taxable income up to ₹5 lakh tax-free.

What makes the old regime worth considering is the list of deductions. The calculator applies the yearly limits for you:

  • 80C, now Section 123: up to ₹1.5 lakh for your own PF, PPF, ELSS, life insurance, children's tuition fees and home loan principal
  • Health insurance (80D, now Section 126): ₹25,000 for your family, ₹50,000 if you are a senior citizen, and the same again for parents
  • Interest on a home loan for a house you live in: up to ₹2 lakh
  • Your own extra NPS contribution: up to ₹50,000 on top of 80C
  • HRA exemption, professional tax, education loan interest and donations

How the HRA exemption is worked out

If you live in a rented home and your salary includes HRA, part of that HRA is tax-free in the old regime. The exempt amount is the smallest of three figures: the HRA you actually received, the rent you paid minus 10% of basic pay and DA, and 50% of basic pay and DA in a metro city or 40% elsewhere.

From Tax Year 2026-27 the 50% limit covers eight cities: Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. Your employer will ask for rent receipts, and for the landlord's PAN when rent is more than ₹1 lakh a year. You can make a full year of receipts in a minute with the rent receipt generator.

Which regime should you choose?

There is no single answer. It depends on how much you can genuinely deduct. The calculator shows a break-even figure: the total of HRA exemption, 80C and other old-regime deductions at which both regimes cost the same. If your real deductions are above that figure, the old regime saves money; below it, the new regime does.

For most salaries up to about ₹15 lakh, the new regime wins unless you have both a large HRA exemption and a home loan. To see what the tax does to your monthly take-home pay, use the salary calculator, and read old or new tax regime: which one fits you for a longer explanation.

What changed with the Income-tax Act, 2025

From 1 April 2026 the Income-tax Act, 2025 replaced the 1961 Act. The old pair of financial year and assessment year is now a single tax year, sections have new numbers (80C is Section 123, 80D is Section 126) and Form 16 is now Form 130. Tax rates and deduction limits did not change, so the arithmetic is the same as last year.

Things to keep in mind

  • This is an estimate for a resident individual. Capital gains, lottery winnings and other special-rate income are taxed differently and are not included.
  • Only enter deductions you can prove. A claim your employer or the tax department disallows removes the old regime's advantage.
  • Salaried employees can usually pick a regime each year when filing the return. People with business income have limits on switching back and forth.
  • Employer NPS contributions are deductible in both regimes: up to 14% of basic pay in the new regime and 10% in the old, for private-sector employees. Add them to your salary as well as to the employer NPS field.

Frequently asked questions

Up to what salary is income tax zero in the new regime?

Up to ₹12.75 lakh of salary for Tax Year 2026-27. The ₹75,000 standard deduction brings taxable income to ₹12 lakh, and the Section 87A rebate of up to ₹60,000 cancels the tax on that. Other income such as interest counts towards the ₹12 lakh limit.

Can I claim HRA in the new tax regime?

No. The HRA exemption, 80C, 80D and home loan interest on a self-occupied house are available only in the old regime. The new regime allows the standard deduction, employer NPS contribution and a few others.

What is the break-even deduction amount?

It is the total of old-regime deductions and exemptions, apart from the standard deduction, at which both regimes cost the same. If you can claim more than this, choose the old regime; if less, the new one.

Did the tax slabs change for 2026-27?

No. Budget 2026 kept the same slabs, rebate and standard deduction as 2025-26. What changed is the law itself: the Income-tax Act, 2025 came into force on 1 April 2026, with new section numbers and the term tax year.

Is this the same as the TDS my employer deducts?

It should be close if your declarations match what you enter here. Employers spread the year's tax over the remaining months, so if you join mid-year or change declarations, monthly TDS can differ while the yearly total stays the same.

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