How this calculator works
- Step 1Add up income₹15,00,000salary plus other income at slab rates
- Step 2Subtract what the regime allows₹14,25,000new-regime total income after the standard deduction
- Step 3Tax each slab₹93,750then the rebate and any surcharge
- Step 4Add 4% cess, round to ₹10₹97,500new-regime tax for the default plan
The calculator runs these steps twice, once for each regime, with the same income. Only the deductions, slabs and rebate differ. Total income and the final tax are both rounded to the nearest ₹10, as section 516 of the Income-tax Act, 2025 requires.
Rules used for tax year 2026-27
The Union Budget of 1 February 2026 kept the new-regime slabs, rebate and standard deduction unchanged; they now sit in the Income-tax Act, 2025.
| Total income | Rate |
|---|---|
| ₹0 to ₹4,00,000 | Nil |
| ₹4,00,000 to ₹8,00,000 | 5% |
| ₹8,00,000 to ₹12,00,000 | 10% |
| ₹12,00,000 to ₹16,00,000 | 15% |
| ₹16,00,000 to ₹20,00,000 | 20% |
| ₹20,00,000 to ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
| Total income | Rate |
|---|---|
| ₹0 to ₹2,50,000 | Nil |
| ₹2,50,000 to ₹5,00,000 | 5% |
| ₹5,00,000 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
- New regime₹75,000standard deduction; rebate up to ₹60,000 when total income is at most ₹12,00,000, with marginal relief just above it; surcharge capped at 25%.
- Old regime₹50,000standard deduction; rebate up to ₹12,500 when total income is at most ₹5,00,000; surcharge up to 37%. Tax-free limit rises at 60 and at 80.
What this estimate leaves out
- Special-rate incomeCapital gains, lottery winnings and similar income taxed at their own rates are excluded.
- Deduction limitsYour old-regime figure is taken as entered; section-wise limits and conditions are not checked.
- Residents onlyNon-residents, HUFs, firms and other taxpayers follow rules not modelled here.
- TDS, advance tax, interestTax already deducted, refunds and interest for late payment are not shown.
Worked example
- Total income
salary + other income − standard deduction, rounded to ₹10- Tax
(slab tax − rebate + surcharge) + 4% cess, rounded to ₹10
- Total income₹15,00,000 − ₹75,000₹14,25,000
- ₹4,00,000 to ₹8,00,000₹4,00,000 × 5%₹20,000
- ₹8,00,000 to ₹12,00,000₹4,00,000 × 10%₹40,000
- ₹12,00,000 to ₹16,00,000₹2,25,000 × 15%₹33,750
- Tax on slabs₹93,750
- Rebatetotal income is above ₹12,00,000₹0
- Cess4% of ₹93,750₹3,750
- New-regime tax₹97,500
- Total income₹15,00,000 − ₹50,000 − ₹2,50,000₹12,00,000
- ₹2,50,000 to ₹5,00,000₹2,50,000 × 5%₹12,500
- ₹5,00,000 to ₹10,00,000₹5,00,000 × 20%₹1,00,000
- Above ₹10,00,000₹2,00,000 × 30%₹60,000
- Tax on slabs₹1,72,500
- Cess4% of ₹1,72,500₹6,900
- Old-regime tax₹1,79,400
On these figures the new regime costs ₹81,900 less. The old regime would stop costing more once deductions reach ₹5,43,726: at that amount it comes to ₹97,500, against ₹97,500 in the new regime.
Reading your result
The headline shows the lower of the two totals. Each card lists how that total is built, so you can see which step makes the difference.
The break-even figure answers one question: how much would you need to deduct for the old regime to cost no more? Compare it with what you can actually claim.
To turn a salary package into monthly take-home pay, including employee PF and professional tax, use the in-hand salary calculator. Its income-tax step uses the same rules as this page. The salary hike calculator shows what a raise adds before tax.
Just above the rebate limit
- Total income ₹12,00,000₹0The ₹60,000 rebate cancels the slab tax.
- Total income ₹12,10,000₹10,400Marginal relief keeps tax before cess to ₹10,000, the income above the limit.
Common mistakes
Mistake: Subtracting HRA or other exemptions from salary before entering it.
Instead: Enter gross salary and put exemptions in old-regime deductions; the new regime does not allow them.
Mistake: Entering what you invested instead of what you can claim.
Instead: Use each deduction after its limit, such as the cap on provident fund and insurance investments.
Mistake: Including capital gains in other income.
Instead: Leave special-rate income out; it has its own rates and is not modelled here.
Mistake: Assuming last year’s rules still apply.
Instead: Check the rules for the tax year you are planning; each Budget can change them.
Rules change with each Budget. Before you file or plan, verify your figures with the Income Tax Department or a chartered accountant.
This is an educational estimate built by a software engineer, not tax advice. It does not decide which regime you should choose.
Checking the method
A separate script recomputes every test case from the Act's slab and rebate rules, without using the calculator's code.
Read how we test our calculators, or browse more money calculators.