Compare estimated tax on ordinary salary income under the old and new regimes.
Results are estimates for illustration only and are not financial, tax or investment advice. Disclaimer
Financial year 2026-27Rules reviewed 2026-11-14
Your inputs
Range ₹2.5L to ₹1Cr
₹2.5L₹1Cr
Range ₹0 to ₹10L
₹0₹10L
Total you can claim under the old regime only: e.g. PPF, ELSS, EPF and life insurance (up to ₹1.5 lakh), health insurance, home-loan interest, NPS and exempt HRA. Not used for the new regime.
Old regime: ₹75,400. New regime: ₹0. Lower estimated tax: new regime
Results
Difference in estimated tax
₹75,400₹75,400
Lower estimated tax: new regime
Old regime
₹75,400₹75,400
New regime
₹0₹0
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How your tax is calculated
Tax is charged slab by slab: each rate applies only to the part of your taxable income that falls inside that slab, not to your whole income. Rebate, relief, surcharge and cess are then applied in order.
Old regime
1. Taxable income: ₹10,00,000 salary − ₹50,000 standard deduction − ₹1,50,000 other deductions = ₹8,00,000.
2. Tax on each slab of taxable income:
Slab-wise tax, Old regime
Income slab
Rate
Your income in slab
Tax
₹0 – ₹2.5L
0%
₹2,50,000
₹0
₹2.5L – ₹5L
5%
₹2,50,000
₹12,500
₹5L – ₹10L
20%
₹3,00,000
₹60,000
Tax before relief
₹72,500
3. No rebate: it applies only when taxable income is at most ₹5,00,000.
4. Cess: 4% health and education cess on ₹72,500 adds ₹2,900.
Total estimated tax: ₹75,400, which is 7.5% of your gross salary.
New regime
1. Taxable income: ₹10,00,000 salary − ₹75,000 standard deduction = ₹9,25,000. Other deductions are not allowed in the new regime.
2. Tax on each slab of taxable income:
Slab-wise tax, New regime
Income slab
Rate
Your income in slab
Tax
₹0 – ₹4L
0%
₹4,00,000
₹0
₹4L – ₹8L
5%
₹4,00,000
₹20,000
₹8L – ₹12L
10%
₹1,25,000
₹12,500
Tax before relief
₹32,500
3. Rebate: taxable income is within ₹12,00,000, so ₹32,500 of this tax is waived.
No tax is payable under this regime.
Tax calculation breakdown
Calculation
Old regime
New regime
Annual gross salary
₹10,00,000
₹10,00,000
Salary standard deduction
₹50,000
₹75,000
Other deductions applied
₹1,50,000
₹0
Taxable income
₹8,00,000
₹9,25,000
Tax before relief
₹72,500
₹32,500
Rebate deducted
₹0
₹32,500
Marginal relief deducted
₹0
₹0
Surcharge added
₹0
₹0
Health & education cess (4%)
₹2,900
₹0
Total estimated tax
₹75,400
₹0
How this estimate works
For resident individuals with ordinary salary income only. Capital gains, lottery winnings, business income, special-rate income and non-resident rules are excluded.
Salary standard deduction is ₹50,000 under the old regime and ₹75,000 under the new regime, capped at salary. Enter your other eligible deductions and exemptions (up to ₹10 lakh in total) separately; they apply only under the old regime.
The new regime provides a rebate up to ₹60,000 when taxable income is at most ₹12 lakh, with marginal relief just above that limit. The old-regime rebate is up to ₹12,500 when taxable income is at most ₹5 lakh.
Age changes the old-regime exemption threshold; new-regime slabs are the same for all ages. Surcharge and its marginal relief apply where required, followed by 4% cess.
This is a planning estimate. Taxable income and final tax are kept at full precision until display; statutory filing rounding and individual eligibility must be checked when filing.
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How the income tax calculator works
The income tax calculator compares tax on salary income under the old and new regimes for FY 2026-27. The new regime has lower slab rates and a larger rebate but allows few deductions; the old regime allows deductions such as eligible investments and insurance premiums.
Who this helps
For resident individuals comparing modeled old- and new-regime tax on ordinary salary income for the displayed financial year.
Calculate slab tax on taxable salary, subtract the rebate and any marginal relief, add surcharge, then apply 4% health and education cess. Marginal relief is the relief just above the new-regime rebate threshold and at surcharge thresholds; the rebate itself is subtracted separately. Eligible deductions and the salary standard deduction are applied before slab tax.
Worked example
With a salary of ₹10 lakh and ₹1.5 lakh of other deductions, the estimated tax is ₹75,400 under the old regime and ₹0 under the new regime, a difference of ₹75,400.
Based on this calculator’s default inputs.
Frequently asked questions
Is income up to ₹12 lakh tax-free under the new regime?
For resident individuals with ordinary salary income only, effectively up to ₹12.75 lakh: the ₹75,000 standard deduction brings taxable salary to ₹12 lakh, and the rebate of up to ₹60,000 cancels the tax on it. Just above that, marginal relief limits how quickly tax rises. This example excludes capital gains and other special-rate income; it is not a blanket exemption for every type of income.
Which tax regime is better for me?
It depends on your deductions. The old regime can be better when you claim large deductions; otherwise the new regime’s lower rates usually result in less tax. The calculator computes both and shows the difference.
What is the standard deduction for salaried people?
A flat deduction from salary: ₹75,000 under the new regime and ₹50,000 under the old regime. The calculator applies it automatically.
Can I switch between the old and new regimes?
Salaried individuals without business income can generally choose a regime each year when they file their return. Check the current rules before you file.
Does the calculator include capital gains or other income?
No. It covers ordinary salary income for resident individuals. Capital gains, business income and special-rate income are excluded.
Model and timing
Enter salary before the automatic salary standard deduction, and enter eligible old-regime deductions separately. Do not subtract the standard deduction twice. Slabs, rebate, marginal relief, surcharge and cess follow the displayed year’s rules.
Before using the estimate
Capital gains, business income and other special-rate income are excluded; the salary rebate example is not a blanket exemption for every type of income. Deduction eligibility depends on the actual claim. This estimate is not a tax return or filing advice.
Try a useful comparison
Compare realistic eligible deductions rather than entering a desired tax saving. Inspect the regime breakdown and displayed financial year, then save locally or prepare a report with the assumptions.
Results are estimates for illustration only and are not financial, tax or investment advice.
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