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Free Income Tax Calculator – Instantly Compare Old vs New Tax Regime
Calculate your income tax liability in minutes with the Easy Return Income Tax Calculator. Get a clear, side-by-side comparison of your tax payable under the old and new tax regimes before you file your ITR.
No spreadsheets. No guesswork. Enter your gross income, deductions and exemptions to get an instant result.
Instant old regime vs new regime comparison
Updated with the latest Union Budget slab rates
Handles salary, rental, capital gains and business income
Calculates Section 87A rebate, surcharge and cess
Free, simple and updated for taxpayers across India
Understanding Income Tax Slabs in India
Income tax slabs are fixed income ranges defined by the Government of India under the Income Tax Act, 1961. Each slab carries a progressively higher tax rate — the more you earn, the higher the rate that applies to income falling in the upper bands. This is known as progressive taxation.
India’s Central Board of Direct Taxes (CBDT) revises these slabs through the Union Budget. Taxpayers can choose between the new and old tax regimes, subject to the applicable rules.
Your slab-based tax calculation also helps determine whether you may need to pay tax during the financial year instead of waiting until return filing. If advance tax may apply to your income, you can use our advance tax calculator to estimate the amount based on your expected tax liability.
New Tax Regime — Section 115BAC
Lower income tax slab rates with fewer deductions and exemptions. This is the default tax regime.
Old Tax Regime
Higher slab rates, but allows a wider range of deductions and exemptions such as 80C, 80D and HRA, where applicable.
Regime choice, Section 87A rebate, surcharge, cess and income taxed at special rates such as LTCG or STCG may also affect the result. The Easy Return calculator compares the applicable outcomes automatically.
What Is the New Tax Regime and Who Should Choose It?
The new tax regime was introduced under Section 115BAC of the Income Tax Act, 1961. It offers lower, simplified income tax slab rates in exchange for giving up many popular tax deductions and exemptions.
For salaried taxpayers, the comparison should be based on your actual annual salary and taxable components rather than CTC alone. If you first want to understand your salary structure and estimated earnings, you can use our salary calculator before comparing the two tax regimes. Once you understand how much income may remain after tax, you can plan your savings after tax based on the amount available for your monthly financial goals.
The New Tax Regime May Suit You If:
You are a salaried individual with straightforward finances.
You do not rely heavily on tax-saving investments.
You do not claim large deductions or exemptions such as HRA, home loan interest or Section 80C.
Since FY 2023-24, the new regime has been the default tax regime. Eligible taxpayers can choose the old regime subject to the applicable rules. The Easy Return Income Tax Calculator compares both regimes so you can see which one results in lower tax for your income profile.
Current New Tax Regime Slab Rates
The new tax regime slab rates have been revised to provide wider income bands and more gradual tax rates. The following slabs apply under the new tax regime for AY 2026–27.
| Income Tax Slabs | Income Tax Rate |
|---|---|
| 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% |
Eligible salaried taxpayers can claim a standard deduction of up to ₹75,000 under the new tax regime.
Eligible resident individuals with taxable income up to ₹12 lakh can receive a rebate of up to ₹60,000 under Section 87A, subject to applicable conditions.
Your actual tax can also depend on surcharge, Health & Education Cess, marginal relief, rebate eligibility, and income taxed at special rates such as certain capital gains. If your income includes multiple or complex income sources and you are unsure how the rules apply, you can talk to a CA online before finalising your tax calculation.
Old Tax Regime Slab Rates and When They Apply
The old tax regime slab rates have remained unchanged for several years. These rates apply to resident individuals below 60 years of age:
| Income Tax Slabs | Income Tax Rate |
|---|---|
| Up to ₹2.5 lakh | Nil |
| ₹2.5 lakh to ₹5 lakh | 5% |
| ₹5 lakh to ₹10 lakh | 20% |
| Above ₹10 lakh | 30% |
Under the old regime, eligible resident individuals with total income up to ₹5 lakh can claim a rebate of up to ₹12,500 under Section 87A, subject to applicable conditions.
Income Tax Slabs for Senior Citizens
The old tax regime provides a higher basic exemption limit for senior citizens — resident individuals aged 60 years or above but below 80 years:
| Income Tax Slabs | Income Tax Rate |
|---|---|
| Up to ₹3 lakh | Nil |
| ₹3 lakh to ₹5 lakh | 5% |
| ₹5 lakh to ₹10 lakh | 20% |
| Above ₹10 lakh | 30% |
The new tax regime does not provide separate age-based slab rates for senior citizens. The same new-regime slab structure applies across age groups.
Income Tax Slabs for Super Senior Citizens
Super senior citizens — resident individuals aged 80 years and above — receive a higher basic exemption limit under the old regime:
| Income Tax Slabs | Income Tax Rate |
|---|---|
| Up to ₹5 lakh | Nil |
| ₹5 lakh to ₹10 lakh | 20% |
| Above ₹10 lakh | 30% |
Resident senior citizens who do not have income from business or profession may be exempt from paying advance tax, subject to the applicable provisions.
Old Regime vs New Regime: Key Deductions and Exemptions Compared
This is where the two regimes truly differ. The old tax regime provides access to a wider range of deductions and exemptions, while the new tax regime uses revised slab rates and allows only specified deductions and exemptions.
| Tax Benefit | Old Regime | New Regime |
|---|---|---|
| Rebate u/s 87A | Up to ₹12,500 for eligible total income up to ₹5 lakh | Up to ₹60,000 for eligible total income up to ₹12 lakh |
| Standard Deduction | ₹50,000 | ₹75,000 |
| Section 80C (PPF, ELSS, LIC, EPF, etc.) | ✓ Allowed up to ₹1.5 lakh | ✕ Generally not available |
| Section 80D (Health Insurance) | ✓ Available subject to conditions | ✕ Generally not available |
| HRA Exemption | ✓ Available subject to conditions | ✕ Generally not available |
| Home Loan Interest (Self-occupied property) | ✓ Eligible deduction subject to applicable conditions | ✕ Not available in the same manner for self-occupied property |
| LTA (Leave Travel Allowance) | ✓ Available subject to conditions | ✕ Generally not available |
| NPS Deductions | Eligible deductions may be available under applicable NPS provisions | Specified employer-contribution deduction may be available |
| House Property Loss Set-off | Subject to applicable set-off rules | Restricted under applicable provisions |
| Section 80G (Donations) | ✓ Available for eligible donations | ✕ Generally not available |
| Section 80TTA / 80TTB | ✓ Available where eligible | ✕ Generally not available |
If your eligible tax-saving deductions and exemptions are significant — particularly Section 80C, eligible home-loan benefits, HRA and other deductions — the old regime may produce a different result from the new regime. If PPF forms part of your Section 80C planning, use the PPF calculator for tax saving to estimate how your planned contributions may grow over the investment period. If fixed-deposit interest is part of your income, you can estimate FD interest income before comparing your taxable income, applicable deductions and final tax liability under each regime. If HRA is one of the exemptions you plan to claim, you can calculate HRA before you file to estimate the eligible exemption. Always compare your actual tax liability before filing. If you want an expert to review your income, deductions and correct return form, you can file your ITR with a CA through Easy Return.
Salary-Wise Tax Comparison: How Much Will You Actually Pay?
Here's a practical look at how much income tax you'd pay under each regime at different salary levels, assuming no major deductions are claimed in the old regime:
| Taxable Income | Tax (New Regime) | Tax (Old Regime) | Savings |
|---|---|---|---|
| ₹8 lakh | Nil (87A rebate) | ₹75,400 | ₹75,400 |
| ₹10 lakh | Nil (87A rebate) | ₹1,17,000 | ₹1,17,000 |
| ₹12 lakh | Nil (87A rebate) | ₹1,79,400 | ₹1,79,400 |
| ₹13 lakh | ₹78,000 | ₹2,10,600 | ₹1,32,600 |
| ₹15 lakh | ₹1,09,200 | ₹2,73,000 | ₹1,63,800 |
| ₹20 lakh | ₹2,08,000 | ₹4,29,000 | ₹2,21,000 |
| ₹25 lakh | ₹3,43,200 | ₹5,85,000 | ₹2,41,800 |
| ₹30 lakh | ₹4,99,200 | ₹7,41,000 | ₹2,41,800 |
For income up to ₹12 lakh, the new regime effectively results in zero tax due to the Section 87A rebate. At higher income levels, the new regime continues to offer significant savings unless you claim substantial deductions under the old regime.
Enter your income in the Easy Return calculator above to get your personalized result.
How Zero Tax on Income Up to ₹12 Lakh Actually Works
One of the biggest advantages of the new tax regime is that income up to ₹12 lakh is effectively tax-free for most salaried taxpayers.
The Section 87A tax rebate — currently set at ₹60,000 — cancels out your entire tax liability if your total taxable income does not exceed ₹12 lakh under the new regime.
This rebate applies only to income taxed at normal slab rates. Special rate income such as LTCG under Section 112A, STCG, and online gaming winnings does not qualify for the rebate.
| Particulars | Amount (₹) |
|---|---|
| Gross salary | 12,75,000 |
| Less: Standard deduction | 75,000 |
| Taxable salary | 12,00,000 |
| Tax on income up to ₹4 lakh | Nil |
| Tax on ₹4 lakh to ₹8 lakh (5%) | 20,000 |
| Tax on ₹8 lakh to ₹12 lakh (10%) | 40,000 |
| Total tax before rebate | 60,000 |
| Less: Section 87A rebate | 60,000 |
| Net tax payable | Nil |
A gross salary of ₹12.75 lakh results in zero tax under the new regime, thanks to the combination of the ₹75,000 standard deduction and the ₹60,000 Section 87A rebate.
Step-by-Step Guide: How to Use the Easy Return Income Tax Calculator
Getting your income tax estimate takes less than two minutes. Follow these steps:
- Select the financial year you want to calculate for — the current or previous year.
- Choose your age group — below 60, 60–80 (senior citizen), or 80+ (super senior citizen).
- Click Continue.
- Enter your salary income — use your gross salary before deducting exemptions like HRA or LTA.
- Add other income sources — including interest income, rental income, home loan interest paid and digital asset income. If you have a recurring deposit, you can estimate RD interest income before adding it to your other income.
- Click Continue.
- Enter your deductions — including Section 80C, 80D, 80G, 80E and 80TTA/80TTB, wherever applicable.
- Click Calculate. You'll see your total tax liability, rebate, surcharge and cess under both regimes side by side.
Real-World Tax Calculation Example: Old vs New Regime
Let's walk through a practical example. Ms. Priya has the following income in a given financial year:
| Particulars | Old Tax Regime (₹) | New Tax Regime (₹) |
|---|---|---|
| Salary income | 15,00,000 | 15,00,000 |
| Less: Standard deduction | 50,000 | 75,000 |
| Taxable salary | 14,50,000 | 14,25,000 |
| Freelancing business income | 50,000 | 50,000 |
| Savings bank interest | 7,000 | 7,000 |
| Gross total income | 15,07,000 | 14,82,000 |
| Less: Home loan interest (Section 24b) | 1,50,000 | Nil |
| Less: 80TTA deduction | 7,000 | Nil |
| Taxable income | 13,50,000 | 14,82,000 |
| Tax payable (including 4% cess) | ₹2,26,200 | ₹1,06,392 |
In this case, the new tax regime is significantly more beneficial — even though the old regime allows additional deductions. This is exactly the kind of comparison the Easy Return calculator gives you automatically.
Surcharge and Education Cess: What They Are and How They Apply
What Is Surcharge?
Surcharge is an additional tax levied on your income tax when your taxable income exceeds ₹50 lakh. Think of it as a tax on your tax — applicable to higher income earners. After surcharge, a 4% health and education cess is applied on the combined amount.
Here are the surcharge rates under both regimes:
| Income Level | Surcharge — Old Regime | Surcharge — New Regime |
|---|---|---|
| ₹50 lakh to ₹1 crore | 5% | 5% |
| ₹1 crore to ₹2 crore | 15% | 15% |
| ₹2 crore to ₹5 crore | 25% | 25% |
| Above ₹5 crore | 37% | 25% |
The new tax regime caps surcharge at 25%, even for income above ₹5 crore. Under the old regime, the rate rises to 37% at that level.
The marginal relief provision also ensures you don't pay more tax than the income exceeding the surcharge threshold. The Easy Return calculator accounts for surcharge and cess calculations automatically.
How New Tax Regime Slabs Have Changed Over the Years
The new tax regime has undergone significant changes since it was introduced. Here's a year-by-year look at how the new regime slab rates have evolved.
New Regime Slab Rates
| Total Income | Tax Rate |
|---|---|
| Up to ₹3 lakh | Nil |
| ₹3 lakh to ₹6 lakh | 5% |
| ₹6 lakh to ₹9 lakh | 10% |
| ₹9 lakh to ₹12 lakh | 15% |
| ₹12 lakh to ₹15 lakh | 20% |
| Above ₹15 lakh | 30% |
Section 87A rebate for FY 2023-24: ₹25,000 for income up to ₹7 lakh under the new regime.
New Regime Slab Rates
| Total Income | Tax Rate |
|---|---|
| Up to ₹3 lakh | Nil |
| ₹3 lakh to ₹7 lakh | 5% |
| ₹7 lakh to ₹10 lakh | 10% |
| ₹10 lakh to ₹12 lakh | 15% |
| ₹12 lakh to ₹15 lakh | 20% |
| Above ₹15 lakh | 30% |
The standard deduction of ₹75,000 was introduced for salaried individuals under the new regime from this year onward, via the Union Budget 2024.
New Regime Slab Rates
| Total Income | Tax Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4 lakh to ₹8 lakh | 5% |
| ₹8 lakh to ₹12 lakh | 10% |
| ₹12 lakh to ₹16 lakh | 15% |
| ₹16 lakh to ₹20 lakh | 20% |
| ₹20 lakh to ₹24 lakh | 25% |
| Above ₹24 lakh | 30% |
The Union Budget 2025 expanded the basic exemption limit to ₹4 lakh and raised the Section 87A rebate to ₹60,000, making income up to ₹12 lakh effectively tax-free under the new regime.
The trend is clear: the government has consistently made the new tax regime more attractive with wider slabs, a higher basic exemption limit and a larger rebate.
About the Easy Return Income Tax Calculator
The Easy Return Income Tax Calculator is a free, easy-to-use online tax calculator built to help Indian taxpayers estimate their income tax liability — updated every year in line with the latest Union Budget.
Whether you're a salaried employee, a freelancer, a senior citizen, or someone with multiple income sources, the calculator can account for salary, house property income, capital gains, business income and income from other sources.
Updated with the latest Union Budget changes
Compares old vs new tax regime
Calculates 87A rebate, surcharge and 4% cess
Handles salary, freelancing, rental and digital asset income
Covers 80C, 80D, 80G, 80E and 80TTA deductions
Supports individuals, senior citizens, super senior citizens and HUFs
Completely free to use on EasyReturn.co.in
Frequently Asked Questions About Income Tax in India
Is the new tax regime better than the old tax regime?
For many middle-class salaried taxpayers with limited tax-saving investments, the new regime may be more beneficial. If you claim large deductions such as Section 80C, home loan interest or HRA, the old regime may result in lower tax. Use the Easy Return calculator to compare both.
Can I switch between the old and new tax regime?
Yes. Salaried individuals can generally choose between regimes while filing their ITR. Taxpayers with business or professional income are subject to additional rules, including Form 10-IEA.
Is income up to ₹12 lakh tax-free under the new regime?
For income taxed at normal slab rates, the Section 87A rebate of ₹60,000 can eliminate tax liability for taxable income up to ₹12 lakh. Special-rate income may be treated differently.
What is the standard deduction under the new tax regime?
A standard deduction of ₹75,000 is available to salaried individuals and pensioners under the new tax regime.
Which deductions are allowed in the new tax regime?
The main examples include the employer's contribution to NPS under Section 80CCD(2) and certain eligible house-property provisions. Many popular deductions such as 80C, 80D, HRA and LTA are generally not available.
Can I use the Easy Return calculator with income from multiple sources?
Yes. You can include income from salary, interest, rental income, freelancing, digital assets and capital gains to estimate your combined tax liability under both regimes.
Does the Easy Return calculator compute TDS?
No. The calculator estimates your annual income-tax liability. It does not calculate Tax Deducted at Source (TDS).
How is surcharge calculated on income tax?
Enter your income and deduction details in the Easy Return calculator. It automatically estimates applicable surcharge, Section 87A rebate and 4% health and education cess.
Is filing an ITR mandatory for everyone?
ITR filing requirements depend on income and other prescribed conditions. Filing may also be useful when you need to claim a tax refund or report TDS and other income details.
How do I account for salary arrears in the tax calculator?
Include your salary arrears in the salary income field so they form part of your total taxable income. For relief under Section 89, additional tax treatment may need to be reviewed separately.
Ready to Find Your Best Tax Regime?
Enter your income details in the Easy Return calculator and compare your personalized tax estimate.