Income Tax Calculator

How the Two Regimes Are Structured

The New Regime taxes income at lower rates but removes most deductions. The Old Regime taxes income at higher rates but lets you reduce your taxable income first through deductions like Section 80C (now Section 123), HRA, and 80D. Which one actually costs you less depends entirely on how much you can claim in deductions, not on which regime sounds better.

Which Deductions Apply Under Each Regime

The Old Regime allows Section 80C/123 (up to ₹1.5 lakh: PPF, ELSS, EPF, life insurance), Section 80D (health insurance premiums), HRA, LTA, and home loan interest on a self-occupied property. The New Regime allows only a handful: the standard deduction, employer NPS contributions under Section 80CCD(2), and home loan interest under Section 24(b) for a let-out property. Everything else in the Old Regime’s list simply doesn’t apply once you pick the New Regime.

	Old regime	New regime
HRA
Section 80C / 123
Section 80D
LTA
Employer NPS contribution

Old Tax Regime Income Tax Slabs (FY 2026-27)

Basic exemption: ₹2,50,000. Standard deduction: ₹50,000. Rebate under Section 87A (156): up to ₹12,500, reducing tax to zero for taxable income up to ₹5,00,000.

New Tax Regime Income Tax Slabs (FY 2026-27)

Basic exemption: ₹4,00,000. Standard deduction: ₹75,000. Rebate under Section 87A (156): up to ₹60,000, reducing tax to zero for taxable income up to ₹12,00,000; ₹12,75,000 for salaried individuals once the standard deduction applies.

How Much Tax Will You Pay? A Salary-wise Comparison

The table below shows tax payable (including 4% cess) under both regimes with no deductions claimed under the Old Regime, so you can see the baseline gap before your own deductions come into play.

This gap narrows or disappears once you factor in real Old Regime deductions; someone claiming the full ₹1.5 lakh under 80C/123 plus HRA and 80D could see the Old Regime pull ahead. Use the calculator above with your actual numbers rather than relying on this baseline table alone.

Zero Tax on Income Up to ₹12 Lakh: How the Rebate Works

The Section 87A (156) rebate is what makes the New Regime genuinely tax-free up to ₹12 lakh, not the slab structure alone. Here’s how it plays out for a salaried individual earning ₹12,75,000 a year with no other income:

One caveat worth knowing: this rebate applies only to income taxed at normal slab rates. It doesn’t cover special-rate income, such as capital gains under Sections 111A and 112A, so if part of your ₹12 lakh includes capital gains, you may still owe tax on that portion even though your salary income alone would be fully rebated.

How to Calculate Your Income Tax With This Calculator

Step 1: Enter Your Income

Add your Salaried Income, Rental Income, Business Income, and Other Income.

Step 2: Add Your Deductions

For the Old Regime, add 80C/123, 80D, 80E, and home loan interest. For the New Regime, add your NPS employer contribution and any other New Regime-eligible deduction.

Step 3: Compare Both Regimes

The calculator shows your tax liability under both regimes side by side, so you can see the actual rupee difference rather than guessing which one applies to you.

Why Use the 1% Club Tax Calculator

• Instant clarity: See your exact tax liability under both regimes based on your actual numbers, not a generic estimate.
• Compare before you commit: Since switching is restricted once you have business income, seeing both outcomes before you file matters.
• Built on current rules: This calculator reflects FY 2026-27 slabs and rebate limits, not the framework that applied before Budget 2025.