How to use the income tax calculator
- Enter your gross annual salary (before any deductions) and any other income taxed at slab rates.
- Select your age group — it changes the basic exemption limit under the old regime.
- Fill in deductions you can claim under the old regime: HRA, 80C, 80D, home loan interest and so on.
- The calculator computes tax under both regimes side by side and recommends the one that saves more.
New tax regime slabs (default regime)
| Taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Salaried employees get a ₹75,000 standard deduction, and a rebate under Section 87A makes tax nil for taxable income up to ₹12 lakh. Most other deductions — 80C, 80D, HRA, home loan interest — are not allowed. Employer NPS contributions under 80CCD(2) are still deductible.
Old tax regime slabs
| Taxable income | Below 60 | 60–79 | 80+ |
|---|---|---|---|
| Up to ₹2,50,000 | Nil | Nil | Nil |
| ₹2,50,001 – ₹3,00,000 | 5% | Nil | Nil |
| ₹3,00,001 – ₹5,00,000 | 5% | 5% | Nil |
| ₹5,00,001 – ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
The old regime offers a ₹50,000 standard deduction and a rebate that makes tax nil up to ₹5 lakh of taxable income, and it allows the full range of deductions and exemptions.
Surcharge and cess
A surcharge applies on tax when taxable income crosses ₹50 lakh (10%), ₹1 crore (15%) and ₹2 crore (25%). Under the old regime a 37% surcharge applies above ₹5 crore; the new regime caps it at 25%. Marginal relief ensures the extra tax never exceeds the income above each threshold. A 4% health and education cess applies on tax plus surcharge.
Which regime should you choose?
As a rough guide, the old regime only wins when your total deductions are large — typically ₹4 lakh or more for middle incomes — which usually means a big HRA claim plus a home loan. For most salaried people earning under ₹15 lakh with modest deductions, the new regime now results in lower tax. Your numbers decide it, so compare both above.
Want to see what lands in your bank account each month? Use the CTC to in-hand salary calculator.
This calculator is for estimation only and covers income taxed at normal slab rates. It does not replace professional tax advice. Rules can change with each Union Budget — verify with a Chartered Accountant or the Income Tax Department before filing.
Frequently asked questions
Which is better, the old or new tax regime?
It depends on your deductions. The new regime has lower rates and no tax up to ₹12 lakh of taxable income (₹12.75 lakh for salaried with the standard deduction), but allows almost no deductions. The old regime can win if you claim large deductions such as HRA, 80C, 80D and home loan interest. Enter your numbers above to compare.
Is income up to ₹12 lakh tax-free in the new regime?
Yes, for resident individuals. The Section 87A rebate of up to ₹60,000 makes tax nil when taxable income is ₹12 lakh or less. Salaried taxpayers also get a ₹75,000 standard deduction, so gross salary up to ₹12.75 lakh is effectively tax-free. Special-rate income like capital gains is treated separately.
What is marginal relief?
Marginal relief ensures that earning slightly more than a threshold doesn't raise your tax by more than the extra income. It applies just above the ₹12 lakh rebate limit in the new regime and at each surcharge threshold (₹50 lakh, ₹1 crore, ₹2 crore, ₹5 crore).
Can I switch between regimes every year?
Salaried individuals without business income can choose either regime each year when filing their return. Those with business or professional income can switch back to the old regime only once.
Does this calculator include capital gains?
No. It covers salary and other income taxed at normal slab rates. Capital gains, lottery winnings and other special-rate income are taxed separately and are not included.
Last updated: 22 September 2026Suggest an improvement · Report a problem