How to calculate income tax in India
- Enter your total annual income and whether it is salary or pension (which gets the standard deduction) or business and other income.
- Choose your age group; it changes the old-regime exemption limit.
- Add your old-regime deductions in one figure: Section 80C investments (up to ₹1,50,000), 80D health insurance, HRA exemption, home-loan interest and so on. If your employer contributes to NPS, enter it as 80CCD(2); it is allowed in both regimes.
- Compare the tax under both regimes side by side, with every step from taxable income to cess. The cheaper regime is highlighted.
New tax regime slabs for FY 2026-27
| Taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
The new regime is the default. Salaried taxpayers get a standard deduction of ₹75,000, and the Section 87A rebate of up to ₹60,000 means no tax on taxable income up to ₹12 lakh (₹12.75 lakh of salary). Just above ₹12 lakh, marginal relief caps the tax at the income above ₹12 lakh, so earning a little more never leaves you worse off. Surcharge applies above ₹50 lakh (10%), ₹1 crore (15%) and ₹2 crore (25%, the maximum in the new regime), and 4% health and education cess is added to everything.
The old regime has slabs of 5% above ₹2.5 lakh (₹3 lakh for seniors, ₹5 lakh for those 80 and over), 20% above ₹5 lakh and 30% above ₹10 lakh, a ₹50,000 standard deduction and a rebate of up to ₹12,500 for taxable income up to ₹5 lakh, but it allows deductions such as 80C, 80D, HRA and home-loan interest. It usually only wins if your deductions are large. Slabs and rebates are those of the Finance Act 2025, which Budget 2026 kept for FY 2026-27, checked on 20 October 2026. Capital gains taxed at special rates are not included. This is an estimate, not tax advice.
Is income up to ₹12 lakh tax-free?
Under the new regime, yes: taxable income up to ₹12,00,000 has no tax after the 87A rebate. For salaried people that is a salary of up to ₹12,75,000.
Which is better, the new or old regime?
For most people the new regime, unless your total deductions (80C, 80D, HRA, home-loan interest and others) are large. Enter them above to see your break-even.
How much tax on ₹15 lakh salary in the new regime?
Taxable income ₹14,25,000: ₹60,000 + 15% of ₹2,25,000 = ₹93,750, plus 4% cess = ₹97,500.
Can I switch between regimes?
Salaried individuals without business income can choose each year when filing. People with business income can switch back from the old regime only once.