TaxCompare

India Income Tax Calculator

Side-by-side comparison of your tax liability under both regimes — instantly see which one saves you more.

Gross annual income

Rs.

Section 80C deductions (old regime)

Rs.

Other deductions (old regime)

Rs.

New Regime

Better

Tax payable

Rs. 0

Taxable income: Rs. 11,25,000
Standard deduction: Rs. 75,000

Old Regime

Tax payable

Rs. 1,06,600

Taxable income: Rs. 9,50,000
Deductions claimed: Rs. 2,50,000

The new regime saves you Rs. 1,06,600 compared to the old regime.

What you entered

Gross income: Rs. 12,00,00080C deductions: Rs. 1,50,000Other deductions: Rs. 50,000

1
New regime — taxable income (after ₹75K standard deduction)
Rs. 12,00,000.00 − Rs. 75,000.00= Rs. 11,25,000.00
2
New regime — slab tax (0–4L nil, 4–8L 5%, 8–12L 10%, 12–16L 15%, 16–20L 20%, 20–24L 25%, 24L+ 30%)
Rs. 4,00,000.00 × 5% + Rs. 3,25,000.00 × 10%= Rs. 52,500.00
3
New regime — rebate u/s 87A (taxable income up to ₹12 lakh, max ₹60,000)
min(Rs. 52,500.00, Rs. 60,000.00)= − Rs. 52,500.00
4
New regime — total (tax after rebate + 4% cess)
Rs. 0.00 × 1.04= Rs. 0.00
5
Old regime — taxable income (after ₹50K std deduction + deductions)
Rs. 12,00,000.00 − Rs. 50,000.00 − Rs. 1,50,000.00 − Rs. 50,000.00= Rs. 9,50,000.00
6
Old regime — slab tax (0–2.5L nil, 2.5–5L 5%, 5–10L 20%, 10L+ 30%)
Rs. 2,50,000.00 × 5% + Rs. 4,50,000.00 × 20%= Rs. 1,02,500.00
7
Old regime — total (rebate u/s 87A up to ₹5 lakh, then + 4% cess)
(Rs. 1,02,500.00 − Rs. 0.00) × 1.04= Rs. 1,06,600.00
8
Better regime: new
Rs. 1,06,600.00 − Rs. 0.00= New regime saves Rs. 1,06,600.00

Result

Tax (new regime): Rs. 0

At Rs. 12,00,000 gross income, the new regime is better — you pay Rs. 0 in tax, saving Rs. 1,06,600 compared to the other regime. FY 2025-26 and FY 2026-27 slabs, including the ₹12 lakh rebate and 4% health and education cess; surcharge above ₹50 lakh is not included.

New regime versus old regime tax by gross income

Each row compares total tax including 4% cess under both regimes for FY 2025-26 and FY 2026-27 (the slabs Budget 2026 left unchanged), assuming Rs. 1,50,000 of 80C deductions and Rs. 50,000 of other deductions when computing the old regime. Rs. 12,75,000 is the highest salary the new regime taxes at nil.

Gross income	New regime tax	Old regime tax	Better regime	Saving
Rs. 5,00,000	Rs. 0	Rs. 0	either	Rs. 0
Rs. 7,00,000	Rs. 0	Rs. 0	either	Rs. 0
Rs. 9,00,000	Rs. 0	Rs. 44,200	new	Rs. 44,200
Rs. 12,00,000	Rs. 0	Rs. 1,06,600	new	Rs. 1,06,600
Rs. 12,75,000	Rs. 0	Rs. 1,24,800	new	Rs. 1,24,800
Rs. 15,00,000	Rs. 97,500	Rs. 1,95,000	new	Rs. 97,500
Rs. 20,00,000	Rs. 1,92,400	Rs. 3,51,000	new	Rs. 1,58,600
Rs. 30,00,000	Rs. 4,75,800	Rs. 6,63,000	new	Rs. 1,87,200

At the deduction levels assumed here the new regime wins at every income. Up to Rs. 12,75,000 of salary it charges nothing, because the Section 87A rebate covers taxable income up to Rs. 12,00,000; above that the old regime needs far larger deductions to catch up, roughly Rs. 5.4 lakh at Rs. 15 lakh gross and Rs. 8 lakh from Rs. 25 lakh up. That conclusion is entirely a function of the assumption: the old regime becomes competitive when deductions are large, so someone claiming HRA, home loan interest under Section 24, full 80C, NPS under 80CCD(1B) and health premiums under 80D can flip the answer. Enter your own deduction figures rather than relying on this table. Slabs, the standard deduction and the rebate threshold change with each Budget, so confirm against the current year's rules. Illustrative only - not tax advice.

New regime is the default since FY 2023-24

The new tax regime is now the default — you're automatically on it unless you explicitly opt for the old regime. The new regime has lower slab rates but no deductions (except the ₹75,000 standard deduction), while the old regime has higher rates but allows 80C, HRA, and other deductions.

The breakeven depends on your deductions

Up to ₹12.75 lakh of salary the new regime charges no tax at all (₹12 lakh after the ₹75,000 standard deduction, covered by the Section 87A rebate), so the old regime can at best tie. Above that the old regime needs large deductions to win: about ₹5.4 lakh at ₹15 lakh gross, about ₹7.1 lakh at ₹20 lakh, and about ₹8 lakh from ₹25 lakh up. Enter your own figures, since HRA and home loan interest vary widely.

Frequently asked questions

New vs old tax regime — which should I choose?

For most people the new regime now wins. A salaried income up to ₹12.75 lakh pays no tax under it, so the old regime cannot beat it there. Above that, the old regime only comes out ahead with large deductions: roughly ₹5.4 lakh at ₹15 lakh gross, ₹7.1 lakh at ₹20 lakh and ₹8 lakh from ₹25 lakh up, which usually takes HRA plus home loan interest plus full 80C and NPS. Run both with your own numbers.

What are the new regime income tax slabs for FY 2026-27?

Up to ₹4 lakh: nil. ₹4-8 lakh: 5%. ₹8-12 lakh: 10%. ₹12-16 lakh: 15%. ₹16-20 lakh: 20%. ₹20-24 lakh: 25%. Above ₹24 lakh: 30%. Plus 4% cess. These are the Finance Act 2025 slabs (FY 2025-26); Budget 2026 did not change them. The Section 87A rebate of up to ₹60,000 makes taxable income up to ₹12 lakh tax-free, which is ₹12.75 lakh of salary after the ₹75,000 standard deduction, with marginal relief just above that.

What deductions are available under the old tax regime?

Section 80C: ₹1.5 lakh (PPF, ELSS, EPF, LIC, tuition fees). 80CCD(1B): ₹50,000 NPS. 80D: ₹25,000 health insurance (₹50,000 for seniors). HRA exemption. Home loan interest: ₹2 lakh under Section 24(b). Standard deduction: ₹50,000. Total possible deductions: ₹4-5+ lakh for many salaried employees.