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Finance / India Tax
See which of India's two income tax regimes leaves you with less tax to pay for FY 2025-26, at a given gross income.
This calculator computes tax under both regimes for the same gross income — each regime's own standard deduction (₹75,000 new, ₹50,000 old), its own slab rates, its own Section 87A rebate threshold (₹12L taxable income new, ₹5L old), and a 4% Health & Education cess on both — then reports whichever regime produces the smaller number. Important simplification stated explicitly: this comparison only accounts for each regime's standard deduction and rebate — it does NOT include old-regime-only deductions such as Section 80C investments, HRA exemption, or home loan interest, all of which are only available under the old regime and can reduce old-regime tax well below what's shown here. Because of this, the comparison as shown will favor the new regime more often than a full comparison that accounts for a taxpayer's actual deductions would; use the Section 80C and HRA calculators alongside this one to see how much those deductions close the gap. Also not modeled: the surcharge above ₹50L income. Figures reflect FY 2025-26 rules.
Because this comparison doesn't subtract old-regime-only deductions (Section 80C, HRA, home loan interest, etc.) before computing old-regime tax. A taxpayer who actively claims ₹1.5L+ of Section 80C investments and a large HRA exemption can end up paying less under the old regime than shown here — check the Section 80C and HRA calculators to estimate how much those deductions are worth to you.
Salaried individuals can choose a regime each financial year when filing returns. Individuals with business or professional income face more restrictions on switching back and forth. This calculator doesn't model those eligibility rules — check current CBDT guidance for your situation.
The new regime is the default regime under current law for anyone who doesn't actively opt for the old one, which is why 'New' results are shown as the baseline comparison here.