What is the old vs new tax regime?
India has two ways to compute income tax. The new regime (section 202 of the Income-tax Act, 2025) has lower rates and a ₹75,000 standard deduction but allows almost no other deductions; it is the default. The old regime has higher rates but lets you claim HRA, section 123 (old 80C), section 126 (old 80D), home loan interest and more. Which is cheaper depends on how much you can deduct.
How to use this calculator
- Enter your annual CTC and state.
- Fill in old-regime deductions you actually have: rent, investments, insurance, home loan interest.
- Add any RSU or ESOP perquisite taxed this year.
- Read the headline for the yearly saving, and the two columns for each step of the calculation.
Tax at common salaries
Yearly tax on salary income for a resident under 60, after the standard deduction.
| Salary | New regime | Old, no deductions | Old, ₹3 lakh deductions |
|---|---|---|---|
| ₹8,00,000 | ₹0 | ₹65,000 | ₹0 |
| ₹10,00,000 | ₹0 | ₹1,06,600 | ₹44,200 |
| ₹12,75,000 | ₹0 | ₹1,87,200 | ₹1,01,400 |
| ₹15,00,000 | ₹97,500 | ₹2,57,400 | ₹1,63,800 |
| ₹20,00,000 | ₹1,92,400 | ₹4,13,400 | ₹3,19,800 |
| ₹25,00,000 | ₹3,19,800 | ₹5,69,400 | ₹4,75,800 |
| ₹30,00,000 | ₹4,75,800 | ₹7,25,400 | ₹6,31,800 |
| ₹50,00,000 | ₹10,99,800 | ₹13,49,400 | ₹12,55,800 |
Tax slabs for tax year 2026-27
| New regime income | Rate |
|---|---|
| ₹0 – ₹4,00,000 | 0% |
| ₹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% |
| Old regime income (below 60) | Rate |
|---|---|
| ₹0 – ₹2,50,000 | 0% |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Senior citizens (60–79) pay nothing up to ₹3 lakh and those 80 or older up to ₹5 lakh under the old regime. Surcharge applies above ₹50 lakh (10%), ₹1 crore (15%) and ₹2 crore (25%); the old regime has a 37% band above ₹5 crore. A 4% health and education cess is added on tax plus surcharge.
How the tax is calculated
Taxable income = Salary − exemptions − standard deduction − allowed deductions
Tax = slab tax − rebate (s.156) + surcharge (with marginal relief) + 4% cess, rounded to ₹10
Worked example: ₹18 lakh CTC in Pune
Rent ₹25,000 a month, ₹50,000 in PPF/ELSS on top of PF, ₹25,000 health insurance; default salary split (basic 50%, HRA 40% of basic).
| Item | New regime | Old regime |
|---|---|---|
| Taxable income | ₹15,73,731 | ₹12,11,231 |
| Tax payable | ₹1,20,700 | ₹1,82,900 |
| Monthly in-hand | ₹1,18,136 | ₹1,12,953 |
Old regime deductions here: HRA exemption ₹2,10,000; Standard deduction ₹50,000; Professional tax ₹2,500; s.123 (old 80C), incl. your PF ₹1,50,000; s.126 health insurance ₹25,000.
Assumptions
- Resident individual with salary income only. Capital gains, interest and rental income are not included.
- Rates from the Income-tax Act, 2025 (section 202) and the Finance Act, 2026 (First Schedule). Each value is recorded with its official source and the date we checked it.
- For incomes above ₹5 crore under the old regime, the department’s calculator applies 25% surcharge where the Finance Act states 37%. We follow the Finance Act text.