FY 2025-26 • AY 2026-27

Income Tax Calculator: Old vs New Regime

Estimate Indian income tax under both regimes using your salary and eligible deductions. Results include the applicable rebate, surcharge, and 4% Health and Education Cess.

Connecting to Finance Act Database...
🌐

Global Income Tax Calculator

Compare taxes in USA, UK, Germany, Canada, Australia, UAE & France

Loading global tax models...

Compare Both Regimes Using Eligible Amounts

The New Tax Regime is the default, but the lower estimated tax depends on your taxable income and deductions or exemptions you can validly claim. Enter only eligible amounts for 80C, 80D, NPS, HRA, home-loan interest, and other fields; the calculator then applies the FY 2025-26 assumptions consistently to both estimates.

Tax Decision Cluster

Use related calculators to review how investments, deposits, and loan payments fit alongside your estimated tax liability.

Regime Comparison

Compare estimated Old and New Regime tax side by side.

Eligible Deductions

Enter applicable deductions and exemptions under the correct regime.

Tax Breakdown

Review taxable income, rebate, surcharge, cess, and estimated tax.

1. Old vs New Tax Regime

The New Tax Regime under Section 115BAC is the default and uses lower slab rates with fewer deductions and exemptions. The Old Tax Regime uses its established slabs while allowing eligible claims such as 80C, 80D, HRA, and home-loan interest. Compare both using amounts you can substantiate rather than a generic break-even rule.

How to Compare

Start with annual gross income, then enter only deductions and exemptions for which you meet the applicable conditions. Compare total estimated tax after rebate, surcharge, and cess. Special-rate income such as certain capital gains, lottery winnings, and crypto income is outside the scope of this calculator.

Review Calculation Methodology

2. Old Regime Deductions

If you choose the Old Regime, claim only deductions for which you satisfy the relevant eligibility and documentation requirements:

Section 80C (up to ₹1.5 Lakh)

Eligible items can include EPF, ELSS, qualifying life-insurance premiums, and principal repayment on an eligible home loan, subject to applicable conditions.

NPS (Section 80CCD(1B))

An additional deduction of up to ₹50,000 may be available for eligible NPS contributions under Section 80CCD(1B), over and above the combined Section 80C limit.

3. New Tax Slabs (FY 2025-26)

The FY 2025-26 New Regime slabs used by this calculator are:

₹0 - ₹4 Lakh0% Tax
₹4 Lakh - ₹8 Lakh5% Tax
₹8 Lakh - ₹12 Lakh10% Tax
₹12 Lakh - ₹16 Lakh15% Tax
₹16 Lakh - ₹20 Lakh20% Tax
₹20 Lakh - ₹24 Lakh25% Tax
Above ₹24 Lakh30% Tax

Frequently Asked Questions

What is the standard deduction for FY 2025-26?

For salaried individuals, the standard deduction is ₹75,000 under the New Tax Regime and ₹50,000 under the Old Tax Regime.

Is the New Tax Regime mandatory?

The New Tax Regime is the default regime. However, taxpayers can opt for the Old Tax Regime at the time of declaration to their employer or when filing their ITR.

Which tax regime is better?

The lower-tax regime depends on your income and eligible deductions and exemptions. Compare both estimates using your own eligible amounts before choosing a regime.

Can I switch regimes every year?

Salaried individuals without business income can switch between the Old and New regimes every financial year at the time of filing their ITR.

Plan Beyond Income Tax

Use the estimate as one input in your wider cash-flow plan. Review investment contributions and monthly loan commitments separately.

Ritesh Narang

Editorial Author

Lead Finance Researcher & Editorial Director, eCalcy

Financial technology and calculator design

Reviewed 2026

Reviewed: April 2026

Math basis
Published formulas
References
Methodology reviewed against official income-tax guidelines and financial-planning best practices
Use case
Educational planning

eCalcy publishes calculator logic, methodology notes, and editorial pages so users can see the assumptions behind each result. The tools are for planning and education only, and critical financial decisions should still be checked against official sources or a licensed professional.

The Decision Loop • Next Steps
Calculator Directory

Explore Financial Calculators

Direct access to our most popular calculators and educational guides.

Explore Financial Tools

Use eCalcy for formula-based, tax-adjusted financial estimates across the globe.

Explore Financial Calculators

Reviewed by Ritesh Narang

Finance Research Lead • Aligning with FY 2025-26 (AY 2026-27) Income Tax Rules

ASSUMPTIONS SHOWN FORMULA-BASED PLANNING ESTIMATE
Calculator Guide

The Science Behind the Income Tax Calculator India

Calculate your income tax liability for FY 2025-26 (AY 2026-27) with New vs Old regime comparison. This version is intended for India scenarios; verify any displayed rates or rules for the relevant period. Calculations are performed in the application using the inputs you provide; review the displayed assumptions and privacy information before relying on the result.

How the Income Tax Calculator India Works

Income Tax Calculator India uses the inputs shown in the calculator to produce an illustrative estimate. Review the selected rate, contribution or principal, time period, compounding frequency, fees, and tax assumptions before interpreting the result.

The result is a mathematical scenario, not a promise of future performance or a quote from a provider. Changing the assumptions can materially change the outcome, so compare multiple scenarios and use current product, tax, and regulatory information where relevant.

Use this estimate as one input in your planning. For decisions involving significant borrowing, investing, or tax obligations, check the applicable official guidance and consider advice from a qualified professional.


The Mechanics of Modern Compounding

Unlike simple interest, which calculates interest only on the principal, compound interest includes interest accumulated in earlier periods. Over longer time horizons, reinvestment can materially affect the result, but the outcome remains sensitive to the assumed rate, compounding frequency, fees, taxes, and contribution timing.

The Rule of 72

Many planners use the Rule of 72 as a quick shortcut to estimate the doubling time of an investment. By dividing 72 by the expected annual percentage return, one can estimate the number of years required. For instance, at a 12% CAGR, a portfolio would roughly double every six years.

Standard Deviation & Risk

A calculator can produce a fixed result for a given set of inputs, while market returns can vary significantly. Historical averages do not remove short-term volatility or guarantee future performance. Diversification may reduce concentration risk, but it cannot eliminate market losses.

The Psychology of Wealth: Behavioral Discipline

Financial plans depend on both mathematical assumptions and consistent behavior. During volatile periods, reactions such as panic selling, performance chasing, or abandoning a contribution plan can move real outcomes away from an initial projection. Reviewing risk tolerance and maintaining realistic assumptions can make a plan more useful.

Advanced Behavioral Module

Loss Aversion Bias

Loss aversion describes the tendency to react more strongly to losses than to comparable gains. It can contribute to decisions such as selling during a downturn or holding a concentrated position too long. Scenario estimates can support planning, but they do not predict market behavior or remove investment risk.

The Hedonic Treadmill

As income increases, expectations and desires rise in tandem, resulting in no permanent gain in happiness—and often, a decrease in the savings rate. To support long-term financial goals, one must decouple cost of living from income growth.

How Economic Conditions Affect a Projection

Interest rates, inflation, taxes, fees, and market conditions can change during a planning period. A higher borrowing rate can increase debt costs, while changes in inflation or investment returns can alter the purchasing power of a projected outcome. Compare more than one scenario instead of treating a single rate assumption as permanent.

Comparison Table

Taxable IncomeOld Regime RateNew Regime RateRecommendation
Up to ₹2.5LNilNilEqual
₹2.5L – ₹4L5%NilNew Regime
₹4L – ₹8L5%5%Similar
₹8L – ₹12L20%10%New Regime
₹12L – ₹16L30%15%New Regime
₹16L – ₹20L30%20%New Regime
Above ₹20L30%25% – 30%Compare with deductions
64-bit
Precision math
Input-led
Scenario estimates
20+
Countries supported
Free
No paywall

Planning Notes

New Regime Default: The New Tax Regime is the default since FY 2023-24. Compare both estimates because the lower tax depends on your eligible deductions and exemptions.

Standard Deduction: For FY 2025-26, salaried taxpayers get ₹75,000 under the New Regime and ₹50,000 under the Old Regime.

Section 80C: Investments in PPF, ELSS, or Life Insurance can reduce taxable income by up to ₹1.5 Lakh under the Old Regime.

Example Scenarios

₹7 Lakh Salary
₹0 Tax

Under the New Tax Regime, taxable income up to ₹12 Lakh is effectively tax-free after the Section 87A rebate.

₹15 Lakh Salary
₹97,500 Tax

Estimated New Regime tax after the ₹75,000 standard deduction and without other deductions.

₹50 Lakh Salary
₹10.99 Lakh Tax

Estimated New Regime tax after the ₹75,000 standard deduction; includes the 4% Health & Education cess.

Inputs Used

  • Principal amount or monthly investment
  • Interest rate or expected annual return (%)
  • Time horizon in months or years
  • Optional: fees, contributions, or tax rate

What the Result Shows

  • Total projected wealth or payout
  • Principal vs. interest breakdown (%)
  • Monthly and yearly amortisation view
  • Actionable next-step summary

How to Use the Income Tax Calculator India

Enter your own assumptions, review the calculation method, and compare the result with the assumptions that matter for your situation.

  • Free to Use

    Use the calculator to explore scenarios without a required subscription.

  • Privacy-First Execution

    Calculations happen in your browser. We never store your financial data.

  • Global Scenarios

    Built to handle complex step-up investing and international inflation models.

  • Transparent Method

    Calculations use the inputs and formula described for this tool.

Frequently Asked Questions

How should I use the Income Tax Calculator India?

Start with realistic inputs, review the assumptions and formula, and treat the result as an estimate rather than a guarantee. The most useful scenario is the one that reflects your own time horizon, rate, contribution, and other relevant inputs.

What is the new tax regime slab for 2025-26?

0-4L: Nil, 4-8L: 5%, 8-12L: 10%, 12-16L: 15%, 16-20L: 20%, 20-24L: 25%, Above 24L: 30%.

Is ₹12 Lakh income tax-free?

Yes, under the New Regime, the Section 87A rebate makes taxable income up to ₹12 Lakh effectively tax-free for FY 2025-26.

Can I switch between Old and New regimes?

Salaried individuals can switch every year at the time of filing ITR. Businesses can only switch once.

What are the common 80C deductions?

PPF, EPF, ELSS Mutual Funds, LIC Premium, and Principal repayment of Home Loan.

Does eCalcy support the latest budget updates?

Yes, our tax engine is updated with the FY 2025-26 (AY 2026-27) rules.

What is slab rate?

It's the progressive percentage of tax applied to different income ranges in a financial year.

What is Section 80D?

It allows a deduction for health insurance premiums paid for self, spouse, children, and parents (up to ₹25k - ₹50k).

What is HRA exemption?

House Rent Allowance can be claimed as a tax deduction if you live in a rented house and receive HRA as part of your salary.

Calculation Methodology

This calculator applies the formula and assumptions relevant to the selected inputs. Results are estimates: payment timing, compounding frequency, taxes, fees, rounding, and provider-specific rules can affect real-world values.

Result = calculator-specific formula (displayed inputs and assumptions)
64-bit
Precision math
Input-led
Scenario estimates
20+
Countries supported
Free
No paywall
Assumptions Shown
Scenario Planning
Transparent Inputs
Planning Estimate

Get Smarter About Loans & Taxes

Get practical loan & tax insights in your inbox.

No spam, unsubscribe anytime

Verifying Profile