Income Tax Calculator: Old vs New Regime
Your income tax for tax year 2026-27 under both regimes side by side, with every deduction at its legal limit, senior citizen slabs, and which regime leaves you more.
On a ₹15 lakh salary the new regime's tax is ₹97,500. The old regime, with ₹1.5 lakh in 80C, ₹25,000 of health insurance and ₹2,500 of professional tax, costs ₹2,02,020; it only comes out ahead once your old-regime deductions pass about ₹5,43,750. Up to ₹12.75 lakh of salary the new regime charges nothing.
The words on this page, explained simply
New to this? Here is what each term means, in plain English.
- Taxable income
- What is left of your income after the standard deduction and any deductions you are allowed. The slab rates are applied to this figure, not to your salary.
- New tax regime
- The default income tax system: lower rates and no tax up to ₹12 lakh of taxable income (₹12.75 lakh of salary), but almost no deductions such as 80C or HRA.
- Old tax regime
- The older income tax system that allows deductions and exemptions such as 80C and HRA, at higher tax rates. The new regime, the default, has lower rates but few deductions.
- Standard deduction
- A flat amount every salaried person can take off their salary before tax: ₹75,000 in the new regime, ₹50,000 in the old. No bills or proof needed.
- Rebate (section 156, was 87A)
- A tax discount that wipes out the tax for lower incomes: up to ₹60,000, so nobody with taxable income up to ₹12 lakh pays tax in the new regime (₹5 lakh in the old).
- Section 80C (now section 123)
- An income-tax rule that lets you cut your taxable income by up to ₹1.5 lakh a year for money put into PPF, EPF, ELSS funds, 5-year post office deposits and similar. Called section 80C in the 1961 Act and section 123 in the Income-tax Act, 2025 (from April 2026). Old tax regime only.
- Health insurance deduction (section 126, was 80D)
- Old regime only. The premium you pay for health insurance cuts your taxable income: up to ₹25,000 for yourself, your spouse and children (₹50,000 if you are 60 or over), and the same again for your parents.
- NPS deductions (section 124, was 80CCD)
- Your own extra NPS contribution, up to ₹50,000 a year, is deductible in the old regime only. What your employer puts into your NPS is deductible in both regimes: up to 14% of basic + DA in the new regime and 10% in the old.
- Cess and surcharge
- Cess is an extra 4% added on top of income tax. Surcharge is extra tax for people with high incomes (above ₹50 lakh); on share profits it is at most 15%.
- Financial year
- India's tax year, from 1 April to 31 March.
Every salaried person and pensioner picks a tax regime each year. The new regime, now section 202 of the Income-tax Act, 2025 and the default, has lower rates but drops almost every deduction. The old regime keeps the deductions (80C, health insurance, HRA, home-loan interest) at higher rates. This calculator works out both from the same income and shows which leaves you more, line by line.
New regime slabs, tax year 2026-27
| Taxable income | Rate |
|---|---|
| Up to ₹4 lakh | 0% |
| ₹4–8 lakh | 5% |
| ₹8–12 lakh | 10% |
| ₹12–16 lakh | 15% |
| ₹16–20 lakh | 20% |
| ₹20–24 lakh | 25% |
| Above ₹24 lakh | 30% |
Section 202(1) of the Income-tax Act, 2025. The same table applies at every age. Salary and pension get a ₹75,000 standard deduction (section 19). The section 156 rebate of up to ₹60,000 removes the tax on taxable income up to ₹12 lakh, so a salary of ₹12.75 lakh pays nothing; just above ₹12 lakh, marginal relief caps the tax at the income above ₹12 lakh.
The deduction most people can still use in the new regime is the employer's NPS contribution, up to 14% of basic + DA (section 124(1) and (2)). Professional tax, 80C, health insurance, HRA and interest on a home loan for a house you live in are all excluded (section 202(2)).
Old regime slabs, by age
| Taxable income | Below 60 | 60 to 79 | 80 and over |
|---|---|---|---|
| Up to ₹2.5 lakh | 0% | 0% | 0% |
| ₹2.5–3 lakh | 5% | 0% | 0% |
| ₹3–5 lakh | 5% | 5% | 0% |
| ₹5–10 lakh | 20% | 20% | 20% |
| Above ₹10 lakh | 30% | 30% | 30% |
From the Finance Act, 2026, First Schedule Part III, Paragraph A: the rates for tax year 2026-27. Age is your age at any time in the tax year, and the higher exemption limits are for residents. A rebate of up to ₹12,500 (section 156(1)) means no tax on taxable income up to ₹5 lakh. The standard deduction is ₹50,000.
Deductions in the old regime
| Deduction | Limit | Section (old number) |
|---|---|---|
| PPF, EPF, ELSS, life insurance, tuition fees, home-loan principal | ₹1.5 lakh | 123 (80C) |
| Your own NPS contribution, extra | ₹50,000 | 124(3) (80CCD(1B)) |
| Health insurance: self, spouse, children | ₹25,000; ₹50,000 if you are 60+ | 126 (80D) |
| Health insurance: parents | ₹25,000; ₹50,000 if a parent is 60+ | 126 (80D) |
| Interest on a home loan, house you live in | ₹2 lakh | 22(2) (24(b)) |
| Savings account interest, under 60 | ₹10,000 | 153 (80TTA) |
| Bank and post office interest, 60+ | ₹50,000 | 153 (80TTB) |
| Employer's NPS contribution | 10% of basic + DA (14% for government) | 124(1) (80CCD(2)) |
| Professional tax | up to ₹2,500 | 19(1) (16(iii)) |
Health insurance includes up to ₹5,000 of preventive health check-ups. Exempt HRA comes off too: work it out with the HRA calculator. The calculator applies each limit for you, so you can enter what you actually paid.
Which regime is better for you
It comes down to how much you can deduct in the old regime. The table shows, for each salary, the new regime's tax and the old-regime deductions (on top of the ₹50,000 standard deduction) at which the two regimes cost the same. Deduct more than that and the old regime wins; less and the new regime wins.
| Salary | New regime tax | Old regime wins above deductions of |
|---|---|---|
| ₹10.00 lakh | ₹0 | ₹4,50,000 |
| ₹12.75 lakh | ₹0 | ₹7,25,000 |
| ₹15.00 lakh | ₹97,500 | ₹5,43,750 |
| ₹18.00 lakh | ₹1,50,800 | ₹6,41,667 |
| ₹20.00 lakh | ₹1,92,400 | ₹7,08,333 |
| ₹25.00 lakh | ₹3,19,800 | ₹8,00,000 |
| ₹30.00 lakh | ₹4,75,800 | ₹8,00,000 |
Below 60, no other income, tax year 2026-27. From about ₹24 lakh up the figure stays at ₹8 lakh, because both regimes then tax each extra rupee at 30%.
Few people reach those figures without a home loan and HRA. ₹1.5 lakh of 80C, ₹25,000 of health insurance and professional tax on a ₹15 lakh salary leave the old regime ₹1,04,520 dearer. Add ₹2 lakh of home-loan interest and ₹1.8 lakh of exempt HRA and it becomes ₹2,860 cheaper.
Choosing and switching
With no business income you choose each year, when you file your return (section 202(4)(b)): new one year, old the next. Tell your employer your choice at the start of the year so the TDS from your salary matches; the return settles any difference. With business or professional income, leaving the new regime can be reversed only once.
What this calculator leaves out
Capital gains on shares, mutual funds, gold and property are taxed at their own rates, not the slabs (see the capital gains tax calculator). Business income, rent from a let-out house, agricultural income and relief for arrears of salary are not covered. Non-residents do not get the higher senior-citizen limits or the rebate.
Key takeaways
- New regime 2026-27: 0% to ₹4 lakh, then 5% to 30%; no tax up to ₹12.75 lakh of salary.
- Old regime: higher rates, but 80C, health insurance, HRA, home-loan interest and NPS deductions.
- Seniors pay no old-regime tax up to ₹3 lakh (60 to 79) or ₹5 lakh (80+).
- On ₹15 lakh, the old regime only wins with more than about ₹5,43,750 of deductions.
- Salaried people can switch regime every year when filing the return.
Frequently asked questions
How much income tax on a ₹10 lakh salary in 2026-27?
None under the new regime: ₹10 lakh minus the ₹75,000 standard deduction is ₹9.25 lakh, below the ₹12 lakh rebate limit. Under the old regime with no deductions it is ₹1,06,600.
How much tax on a ₹15 lakh salary?
₹97,500 under the new regime. Under the old regime it is ₹2,57,400 with no deductions, or ₹2,02,020 with ₹1.5 lakh of 80C, ₹25,000 of health insurance and ₹2,500 of professional tax.
How much tax on a ₹20 lakh salary?
₹1,92,400 under the new regime. The old regime only beats it with more than about ₹7,08,333 of deductions.
Which tax regime is better?
The new regime for most people without a home loan or a large HRA. The old regime wins only when your deductions are large: more than about ₹5,43,750 on a ₹15 lakh salary. Enter your own figures in the calculator to see which applies to you.
What are the income tax slabs for senior citizens?
In the new regime, the same as everyone else's. In the old regime, residents aged 60 to 79 pay nothing up to ₹3 lakh, 5% to ₹5 lakh, 20% to ₹10 lakh and 30% above; at 80 and over nothing up to ₹5 lakh, 20% to ₹10 lakh and 30% above.
Is the ₹12 lakh limit for salary or for taxable income?
Taxable income. A salaried person first deducts the ₹75,000 standard deduction, so a salary of up to ₹12.75 lakh pays no tax under the new regime.
Can I claim 80C and 80D in the new regime?
No. Section 202(2) excludes them, along with HRA, home-loan interest on a house you live in and professional tax. The employer's NPS contribution is still allowed, up to 14% of basic + DA.
Can I switch between the old and new regime every year?
Yes, if you have no business or professional income: you choose in each year's return. With business income, you can leave the new regime and come back only once.