Compare India’s old and new tax regimes side by side
Since the new tax regime became the default, the practical question for most salaried taxpayers is simply: which regime costs me less? This calculator runs both for FY 2025-26 (AY 2026-27), applies the right standard deduction, rebate, surcharge, and cess, and shows the cheaper option with the exact saving.
How it works
For each regime the tool subtracts the applicable standard deduction (₹75,000 new, ₹50,000 old for salaried filers) — and, in the old regime only, your itemised deductions — to get taxable income. It then taxes each slab slice at its own rate:
New regime: 0 / 5 / 10 / 15 / 20 / 25 / 30% in ₹4-lakh steps from ₹4L
Old regime: 0 (to ₹2.5L) / 5% / 20% / 30%Next it applies the Section 87A rebate (full tax wiped if taxable income is within ₹12 lakh new / ₹5 lakh old), adds surcharge for high incomes, and finishes with the 4% health and education cess.
Example and notes
A salaried person earning ₹12 lakh gets a new-regime taxable income of ₹11.25 lakh, on which the slab tax of ₹52,500 is fully rebated under 87A — so the tax is zero. In the old regime, with ₹1.5 lakh of 80C deductions, taxable income is ₹10 lakh and the tax (before cess) is ₹1,12,500, making the new regime clearly cheaper here.
The result flips for people with large deductions (home-loan interest, HRA, 80C maxed) — try entering them in the deductions field to see when the old regime wins. This is a planning estimate; capital gains, special-rate income, and complex reliefs need a tax adviser.