India Income Tax Calculator 2026-27 New vs Old Regime
Income Tax Calculator – Instant Results
New Regime (FY 2025-26)
Old Regime (with deductions)
Tax Saved if Lower Regime
Tax calculated based on latest budget 2026 slabs (FY 2025-26 / AY 2026-27). Rebate u/s 87A applied: New regime rebate up to ₹7 lakh taxable income; Old regime rebate up to ₹5 lakh taxable income.
Income Tax Slabs for FY 2025-26 (AY 2026-27)
| Income Slab (₹) | New Regime Rate | Old Regime Rate |
|---|---|---|
| Up to 4,00,000 | Nil | Nil (up to 2.5L) |
| 4,00,001 – 8,00,000 | 5% | 5% (2.5L-5L) |
| 8,00,001 – 12,00,000 | 10% | 20% (5L-10L) |
| 12,00,001 – 16,00,000 | 15% | 30% above 10L |
| 16,00,001 – 20,00,000 | 20% | 30% above 10L |
| 20,00,001 – 24,00,000 | 25% | 30% above 10L |
| Above 24,00,000 | 30% | 30% |
*New regime standard deduction: ₹75,000 for salaried; Old regime: ₹50,000 standard deduction. Health & Education Cess 4% applicable on both regimes. Surcharge applies if total income > ₹50 lakh (simulated in calculator).
Smart Tax Planning: Exclusive 2026 Insights
- National Pension System (NPS) – Additional ₹50,000 deduction under sec 80CCD(1B) over 80C limit.
- Electric Vehicle loan interest – Up to ₹1.5L deduction u/s 80EEB (new regime not allowed).
- Rent paid without HRA – Claim deduction u/s 80GG if you don't receive HRA (max ₹60k/year).
- Home loan interest (self-occupied) – Up to ₹2L under old regime; new regime doesn't allow.
- Employer NPS contribution – Up to 14% of salary exempt, reduces taxable salary.
How to Calculate Income Tax on Salary (Step by Step)
- Compute Gross Total Income = Basic Salary + DA + Bonus + Other Income.
- Deductions under Chapter VIA (80C, 80D, etc.) + HRA exemption + standard deduction (old regime only).
- Taxable income = Gross total – deductions (old regime) / New regime: taxable income = gross – standard deduction ₹75,000.
- Apply slab rates based on regime, then add 4% cess. Surcharge if income > ₹50L (10% to 37%).
- Rebate 87A: New regime: No tax if taxable income ≤ ₹7,00,000; Old regime: No tax if taxable income ≤ ₹5,00,000.
Pro tip for 2026: Compare both regimes with our calculator — many salaried employees with high deductions (80C, NPS, home loan) still benefit under old regime. Use income tax calculator ay 2025-26 dynamic comparison before final ITR filing.
HRA Calculation for Income Tax (Exclusive Guide)
HRA exemption = Least of (Actual HRA received, Rent paid – 10% of basic salary, 50% of basic if metro/40% non-metro). For accurate results, enter your computed HRA exempt amount in the calculator above. Optimize by structuring rent receipts and ensure landlord PAN if annual rent > ₹1L.
Old vs New Regime: Which one suits you?
| Parameter | New Regime (Default 2026) | Old Regime |
|---|---|---|
| Standard Deduction | ₹75,000 | ₹50,000 |
| Section 80C / 80D | Not allowed | Allowed up to ₹1.5L + extra |
| HRA / LTA / Interest on home loan | Not allowed | Fully allowed as per rules |
| Rebate limit (87A) | Taxable income up to ₹7L → nil tax | Taxable income up to ₹5L → nil tax |
| Tax slabs (higher income) | More slabs up to 30% above ₹24L | Flat 30% after ₹10L |
⚡ Verdict 2026: Use our calculator to instantly compare. If you have high deductions (80C + 80D + HRA + home loan interest > ₹3.5 lakh), old regime often wins. Otherwise, new regime offers simplicity & lower tax for mid-income groups (₹8–15L).
Frequently Asked Questions – Income Tax 2026
Under the new tax regime, if your taxable income is up to ₹7,00,000, you get full rebate under Section 87A, meaning zero tax liability (after standard deduction). For old regime, rebate limit is ₹5,00,000.
No. HRA exemption is not available in the new regime. If you have substantial HRA, you should opt for the old regime after comparing tax outgo.
Surcharge: 10% if income ₹50L–1Cr, 15% for ₹1Cr–2Cr, 25% for ₹2Cr–5Cr, 37% above ₹5Cr. Our calculator automatically applies surcharge & 4% cess for accurate results.
Salaried employees can choose any regime each financial year. However, if you have business income, switching is restricted after certain conditions. Use our income tax calculator for comparison.
Keep proofs: PPF passbook, ELSS statements, LIC premium receipts, tuition fee receipts, etc. Under old regime, aggregate limit is ₹1.5 lakh.
Yes, under Section 80EEB, interest paid on EV loan up to ₹1.5 lakh is deductible (only under old regime). Our calculator includes "Other Deductions" field.
For ₹12 lakh salary, other income ₹0, 80C ₹1.5L, old regime tax after deductions approx ₹72,600 (including cess), new regime tax ~₹54,600. Always verify final numbers.
Important Notice
TotalCalcHub’s income tax calculator is for estimation purposes only. Based on Indian income tax laws (Budget 2026), but actual liability may vary due to specific exemptions, surcharge adjustments, or professional advice. Please consult a qualified CA for final tax filing. We update all tools for FY 2025-26 / AY 2026-27.
🇮🇳 Note: This calculator includes both new regime (default choice) and old regime. Results are indicative, not a substitute for legal advice.