HomeTax & salary (India)
Income tax calculator: old vs new regime
Compare the old and new tax regimes for tax year 2026-27, with rebate, surcharge and cess.
Quick answer
Income tax is charged in slabs, and you can choose the default new regime or the old one. Formula: Tax = tax on the slabs − rebate + surcharge, then 4% cess on the total. A salary of ₹15,00,000 pays ₹97,500 in the new regime and ₹2,10,600 in the old with ₹1,50,000 of deductions.
Read the guide: Old vs new tax regime: which is cheaper for you?
The new regime costs less
₹1,13,100
- Tax in the new regime
- ₹97,500
- Tax in the old regime
- ₹2,10,600
- Share of income paid, new regime
- 6.50%
For a resident individual, tax year 2026-27. The new regime is also the default. Capital gains, dividends and other special rates are not included.
Step-by-step working
| Step | New regime | Old regime |
|---|---|---|
| Salary and other income | ₹15,00,000 | ₹15,00,000 |
| Standard deduction | -₹75,000 | -₹50,000 |
| Other deductions | ₹0 | -₹1,50,000 |
| Taxable income | ₹14,25,000 | ₹13,00,000 |
| Tax on the slabs | ₹93,750 | ₹2,02,500 |
| Rebate | ₹0 | ₹0 |
| Surcharge | ₹0 | ₹0 |
| Health and education cess (4%) | ₹3,750 | ₹8,100 |
| Total tax | ₹97,500 | ₹2,10,600 |
Rules as of 2026-11-14: Tax year 2026-27 (income earned 1 April 2026 to 31 March 2027). Sources: Finance Bill 2026 memorandum (slabs, surcharge, cess), Income-tax Act, 2025, section 156 (rebate), Income-tax Act, 2025, section 19 (standard deduction).
How is income tax calculated?
The new regime is the default. It has lower rates and few deductions, and a rebate that makes tax nil up to ₹12 lakh of taxable income, which is ₹12.75 lakh of salary because of the ₹75,000 standard deduction. The old regime has higher rates but lets you deduct things such as 80C investments, health insurance, HRA and home loan interest.
Enter your salary and, for the old regime, the total of the deductions you would claim. The calculator works out both regimes side by side and shows each step, so you can see where the difference comes from.
Tax year 2026-27 is the first year of the Income-tax Act, 2025, which replaced the 1961 Act from 1 April 2026. The slabs are unchanged from the year before; the page shows the sources and the date they were read.
What is the formula for income tax?
- Tax = tax on the slabs − rebate + surcharge, then 4% cess on the total
- Taxable income = salary + other income − standard deduction (₹75,000 new regime, ₹50,000 old) − old-regime deductions
- New regime slabs: up to ₹4 lakh nil, then 5%, 10%, 15%, 20%, 25% and 30% in bands of ₹4 lakh, above ₹24 lakh 30%
- Old regime slabs: up to ₹2.5 lakh nil, 5% to ₹5 lakh, 20% to ₹10 lakh, 30% above (₹3 lakh and ₹5 lakh nil bands at 60 and 80)
- Rebate: new regime ₹60,000 up to ₹12 lakh of taxable income, with marginal relief just above; old regime ₹12,500 up to ₹5 lakh
Can you show a worked example of income tax?
A salary of ₹15,00,000 in the new regime: ₹75,000 standard deduction leaves ₹14,25,000, and the slabs give ₹20,000 + ₹40,000 + ₹33,750 = ₹93,750. No rebate applies, and 4% cess of ₹3,750 makes ₹97,500. In the old regime with ₹1,50,000 of deductions the taxable income is ₹13,00,000 and the tax with cess is ₹2,10,600.
What tax do I pay at common salaries?
Tax year 2026-27 for a resident individual below 60 with salary only. The old regime column assumes ₹1,50,000 of deductions. Tax includes the rebate and 4% cess.
| Salary per year | New regime | Old regime |
|---|---|---|
| ₹5,00,000 | ₹0 | ₹0 |
| ₹7,50,000 | ₹0 | ₹23,400 |
| ₹10,00,000 | ₹0 | ₹75,400 |
| ₹12,75,000 | ₹0 | ₹1,40,400 |
| ₹15,00,000 | ₹97,500 | ₹2,10,600 |
| ₹20,00,000 | ₹1,92,400 | ₹3,66,600 |
| ₹30,00,000 | ₹4,75,800 | ₹6,78,600 |
Common questions
Which regime is the default?
The new regime. The rates in section 202 apply unless you opt for the old regime.
Why is there no tax on ₹12.75 lakh of salary in the new regime?
The ₹75,000 standard deduction brings it to ₹12 lakh of taxable income, and the section 156 rebate of up to ₹60,000 cancels the tax up to that level.
What goes in the old-regime deductions box?
The total of what you would claim, such as 80C, health insurance, HRA and home loan interest. The calculator does not apply the limits, so check them before you enter a figure.
Does it include capital gains or dividends?
No. They are taxed at special rates and are left out. Use this for salary, interest and rent.
Does it work for non-residents?
It is built for a resident individual. The rebate is for residents, and senior-citizen slabs apply to residents.