Which is better, new tax regime or old tax regime?

It depends on how many deductions you claim. If you have large deductions such as HRA, 80C investments, and home loan interest, the old regime may work out cheaper. If you claim few deductions, the new regime's lower slab rates usually result in less tax.

Does this calculator include surcharge for very high incomes?

No. This calculator computes slab-wise tax plus 4% health and education cess, but does not add surcharge, which applies to incomes above 50 lakh. Consult a chartered accountant for surcharge calculations on very high incomes.

Income Tax Calculator

Slab	Rate	Tax in this slab
Tax before cess / rebate	—
Rebate (Sec 87A)	—
Health & education cess (4%)	—
Total tax payable	—

Free Income Tax Calculator for India (FY 2026-27)

Choosing between the New Tax Regime and the Old Tax Regime can change your tax bill significantly. This calculator computes both side by side using the current FY 2026-27 slabs, applies the Section 87A rebate, standard deduction, and common deductions, and tells you which regime saves you more.

New Regime tax slabs (FY 2026-27)

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%

A rebate under Section 87A brings tax to zero for taxable income up to ₹12,00,000 (around ₹12.75 lakh gross salary after the ₹75,000 standard deduction).

Old Regime tax slabs

Up to ₹2,50,000 (₹3,00,000 for seniors, ₹5,00,000 for super seniors) — Nil
Next slab up to ₹5,00,000 — 5%
₹5,00,001 – ₹10,00,000 — 20%
Above ₹10,00,000 — 30%

The old regime allows deductions such as Section 80C, 80D, HRA exemption, and home loan interest under Section 24(b), which can lower taxable income significantly for those with eligible investments and expenses.

Frequently asked questions

Which is better, new regime or old regime?

It depends on your deductions. Large claims under HRA, 80C, and home loan interest often favor the old regime; fewer deductions usually favor the new regime's lower slab rates.

Is income up to ₹12 lakh really tax-free under the new regime?

Yes, via the Section 87A rebate on taxable income up to ₹12,00,000 — about ₹12.75 lakh gross for salaried individuals once the standard deduction is applied. Above that, tax is computed on the full income per the slabs.

Does this include surcharge for very high incomes?

No — it computes slab tax plus 4% cess only. Surcharge applies above ₹50 lakh and is not included; consult a CA for those calculations.

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Income Tax Calculator (India, FY 2026-27)