Choosing between the old and new income tax regimes is the one decision that changes most salaried taxpayers' bills, and the right answer depends entirely on your own numbers. Enter your salary, other income and the deductions you can actually claim, and the calculator computes the tax under both regimes, applying the slabs, standard deductions, the section 87A rebate, surcharge and the 4% cess, then tells you which regime saves you money and by how much.
Rates follow the structure announced in Budget 2025 and applicable from FY 2025-26, which made income up to ₹12 lakh effectively tax-free in the new regime. Check the note under the results for the exact slabs used and confirm with the income tax department's calculator or a chartered accountant before you file.
Income Tax Calculator: Old vs New Regime
Every salaried taxpayer in India now chooses between two ways of being taxed. The new regime has lower slab rates and a larger standard deduction but allows almost no other deductions; the old regime keeps the higher rates but lets you deduct investments under section 80C, health insurance under 80D, house rent allowance, home loan interest and more. The income tax calculator works out both from a single set of inputs and shows which one leaves you with more money, with a line-by-line table of the difference.
Since Budget 2025 the new regime charges nothing on taxable income up to ₹12 lakh (₹12.75 lakh of salary after the ₹75,000 standard deduction) through the section 87A rebate, which is why most people below that level are better off in it. Above that the answer depends on how much you actually claim: a salary of ₹15 lakh with ₹1.5 lakh under 80C and ₹25,000 under 80D gives about ₹97,500 of tax in the new regime against roughly ₹2.03 lakh in the old one, but add a ₹2 lakh home loan interest deduction and a large HRA exemption and the gap narrows or reverses. Enter your real figures rather than guessing.
The calculator applies the slabs, standard deductions, rebates, surcharge and the 4% cess described under the results, and rounds to the rupee. It is a planning estimate: it does not handle capital gains at special rates, agricultural income, surcharge marginal relief, or rebates you may not be eligible for. Confirm the numbers with the income tax department's own calculator or a chartered accountant before filing, and check the current Finance Act if the slabs change.
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Frequently Asked Questions
Which regime is better for me?
If your deductions (80C, 80D, HRA, home loan interest, NPS) are small, the new regime almost always wins because of its lower rates and ₹12 lakh rebate limit. The old regime can win when you claim large deductions, typically above ₹4–5 lakh a year on a mid-level salary. Enter your figures; the calculator shows the crossover for your case.
Is income up to ₹12 lakh really tax-free?
In the new regime, yes: the section 87A rebate wipes out the tax when taxable income is up to ₹12 lakh, and salaried people also get the ₹75,000 standard deduction, so a salary of ₹12.75 lakh pays nothing. Marginal relief means income slightly above the limit is taxed only on the excess.
Can I switch regimes every year?
Salaried taxpayers without business income can choose either regime each year when filing. Those with business or professional income can move from the new regime to the old one and back only once.
