Income tax calculator — old vs new regime
Tax under both regimes side by side, plus the deductions the old regime would need to beat the new one at your income.
Covers Assessment year 2026-27 · rates as at 2026-04-01
Tax under the new regime
Estimate₹97,500
113,100 less than the other regime
- New regime
- ₹97,500
- Old regime
- ₹2,10,600
- Deductions needed to match
- ₹1,50,001
| Gross salary | ₹15,00,000 |
|---|---|
| Standard deduction, new regime | -₹75,000 |
| Taxable income, new regime | ₹14,25,000 |
| Slab tax | -₹93,750 |
| Cess at 4% | -₹3,750.00 |
| Tax under the new regime | -₹97,500 |
- Cess of 4% is charged on tax plus surcharge, so it multiplies the bill rather than adding a flat amount.
- The old regime cannot match the new one at this income even with the full deduction limit claimed.
The new regime gives a ₹75,000 standard deduction and wider slabs but almost nothing else — so the old regime only wins if you genuinely claim a lot.
Side by side
How this is calculated
The 87A rebate is a cliff, not a taper
Taxable income at or below ₹12,00,000 in the new regime pays nothing at all after the section 87A rebate. One rupee more and the whole slab table applies from ₹4,00,000 upwards.
tax = 0 if taxable ≤ ₹12,00,000, else full slab tableCess multiplies, it does not add
Health and education cess is 4% of tax plus surcharge, not 4% of income. On ₹1,00,000 of tax that is ₹4,000, and on a surcharged bill it compounds on the surcharge too.
cess = 4% × (tax + surcharge)The old regime only wins with real deductions
It gives a ₹50,000 standard deduction against ₹75,000, and narrower slabs. What makes it competitive is 80C, 80D and HRA — so the useful output is how much you would need to claim to break even.
Worked example: ₹15,00,000 salary with ₹1,50,000 of 80C deductions
| Salary | ₹15,00,000 |
|---|---|
| Deductions | ₹1,50,000 |
| New regime deduction | ₹75,000 |
|---|---|
| Old regime deduction | ₹50,000 plus 80C |
| Cess | 4% of tax |
The old regime taxes anything above ₹10,00,000 at 30% where the new regime charges 15% to ₹16,00,000, which is why the wider slabs usually beat the deductions.
What this assumes
- Salaried individual below 60.
- Salary income only, no capital gains.
- Deductions claimed are within the 80C limit.
- Resident for the full year.
Where this commonly goes wrong
- The new regime is the default — staying on the old one requires an active election each year, and salaried taxpayers can switch annually while business income generally cannot.
- Deductions above the ₹1,50,000 section 80C limit give no further relief, so a large insurance premium and PPF contribution can overlap and waste each other.
- Surcharge applies above ₹50,00,000 and is charged on tax before cess, so crossing the threshold raises the bill by more than the extra income.
Questions
Which regime should I choose?
It depends entirely on what you claim. The new regime gives a ₹75,000 standard deduction and wider slabs; the old gives ₹50,000 plus 80C, 80D and HRA. This tool shows the deductions the old regime needs to break even.
Is income up to ₹12,00,000 really tax free?
Under the new regime, yes — the section 87A rebate wipes the bill for taxable income at or below ₹12,00,000. It is a cliff, so a rupee above the threshold brings the whole slab table into play.
What is the health and education cess?
4% charged on tax plus surcharge, not on income. On ₹1,00,000 of tax it adds ₹4,000, and where surcharge applies the cess is calculated on the surcharged figure rather than the base tax.
Can I switch between regimes?
Salaried taxpayers can choose each year when filing. Those with business or professional income generally get one switch back to the old regime and are then locked in, so the choice matters more for them.
What deductions does the new regime allow?
Very few — principally the ₹75,000 standard deduction and the employer NPS contribution. Section 80C, 80D, HRA and the rest are unavailable, which is the trade for the wider slabs.
When does surcharge apply?
Above ₹50,00,000 of income, at 10%, rising to 15% above ₹1 crore and 25% above ₹2 crore. It is charged on the tax rather than the income, and the cess is then calculated on the total.
Related tools
Sources
General estimate based on published Income Tax Department rates for Assessment year 2026-27. Not tax advice. Confirm your position with the Income Tax Department or a chartered accountant.
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