India Income Tax Calculator 2026-26 — Old vs New Regime
Calculate Indian income tax for FY 2026-26. Compare old regime vs new regime, apply 80C/80D deductions, check Section 87A rebate eligibility, and find which regime saves more.
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= ₹12,00,000 (12 lakhs) Old Regime Deductions
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EPF, PPF, ELSS, LIC, NSC, etc. ₹
Self: ₹25K, with senior parents: ₹75K max ₹
House Rent Allowance (salary-based) ₹
Additional NPS contribution (over 80C) ₹
80E (education loan), 80G (donations), etc. Standard deduction ₹50,000 is applied automatically under old regime.
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Tax Payable
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Effective Tax Rate
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Annual Take-Home
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Recommended Regime
Tax Calculation Breakdown
India Income Tax Guide 2026-26
From FY 2026-26 (AY 2026-27), the new tax regime is the default. If you don't explicitly opt for the old regime, new regime rates apply. Salaried individuals can switch between regimes each year; business income earners are more restricted.
New Regime Slabs (FY 2026-26)
₹0 – ₹4,00,000: 0% | ₹4L – ₹8L: 5% | ₹8L – ₹12L: 10%
₹12L – ₹16L: 15% | ₹16L – ₹20L: 20% | ₹20L – ₹24L: 25% | Above ₹24L: 30%
Standard deduction: ₹75,000 | Rebate u/s 87A: up to ₹60,000 if income ≤ ₹12,00,000
4% health & education cess on total tax
₹12L – ₹16L: 15% | ₹16L – ₹20L: 20% | ₹20L – ₹24L: 25% | Above ₹24L: 30%
Standard deduction: ₹75,000 | Rebate u/s 87A: up to ₹60,000 if income ≤ ₹12,00,000
4% health & education cess on total tax
Old Regime Slabs
₹0 – ₹2,50,000: 0% | ₹2.5L – ₹5L: 5% | ₹5L – ₹10L: 20% | Above ₹10L: 30%
(Senior 60+: ₹3L exempt | Super senior 80+: ₹5L exempt)
Rebate u/s 87A: up to ₹12,500 if taxable income ≤ ₹5,00,000
Deductions: 80C ₹1.5L, 80D ₹25K+, HRA, 80CCD ₹50K, Standard ₹50K, etc.
4% health & education cess
(Senior 60+: ₹3L exempt | Super senior 80+: ₹5L exempt)
Rebate u/s 87A: up to ₹12,500 if taxable income ≤ ₹5,00,000
Deductions: 80C ₹1.5L, 80D ₹25K+, HRA, 80CCD ₹50K, Standard ₹50K, etc.
4% health & education cess
Example
Salaried employee, ₹12,00,000 gross, below 60:
New regime: ₹12,00,000 − ₹75,000 standard = ₹11,25,000 taxable → tax = ₹62,500; Rebate u/s 87A: nil (income > ₹12L — rebate only up to ₹12L net taxable); Tax + 4% cess = ₹65,000
Old regime (80C+80D+HRA+NPS): ₹12,00,000 − ₹50,000 − ₹1,50,000 − ₹25,000 − ₹1,20,000 − ₹50,000 = ₹8,05,000 taxable → Tax ≈ ₹92,500 + 4% cess ≈ ₹96,200
New regime saves ₹31,200 in this example.
New regime: ₹12,00,000 − ₹75,000 standard = ₹11,25,000 taxable → tax = ₹62,500; Rebate u/s 87A: nil (income > ₹12L — rebate only up to ₹12L net taxable); Tax + 4% cess = ₹65,000
Old regime (80C+80D+HRA+NPS): ₹12,00,000 − ₹50,000 − ₹1,50,000 − ₹25,000 − ₹1,20,000 − ₹50,000 = ₹8,05,000 taxable → Tax ≈ ₹92,500 + 4% cess ≈ ₹96,200
New regime saves ₹31,200 in this example.
Extended
Deduction Breakeven Analyzer
Find exactly how much in deductions you need for old regime to beat new regime at your income level
Find the minimum total deductions needed under the old regime to match or beat the new regime at your income level.
| Deduction Level | Old Regime Tax | New Regime Tax | Old Regime Benefit |
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Frequently Asked Questions
What is the difference between old regime and new regime in Indian income tax?
The old tax regime allows numerous deductions and exemptions (80C, 80D, HRA, etc.) but has higher tax rates on mid-range incomes. The new tax regime (2026-26) offers lower rates with a revised slab structure starting at 5% for income above ₹4 lakh, but most deductions are not allowed. A standard deduction of ₹75,000 is available under the new regime. Under the new regime, income up to ₹12.75 lakh is effectively tax-free due to rebate u/s 87A plus standard deduction.
What is Section 80C and what investments qualify?
Section 80C allows deductions up to ₹1,50,000 per year for investments and payments including: EPF/PPF contributions, ELSS mutual funds, NSC (National Savings Certificate), life insurance premiums, home loan principal repayment, Sukanya Samriddhi Yojana, tax-saving fixed deposits (5-year), tuition fees for up to 2 children. Section 80C deductions are only available under the old tax regime.
What is Section 87A rebate and who gets it?
Section 87A provides a tax rebate to reduce your tax liability to zero if income is within the threshold. Under the new regime for 2026-26: rebate of up to ₹60,000 applies if net taxable income does not exceed ₹12 lakh (effectively making income up to ₹12.75 lakh tax-free with the ₹75,000 standard deduction). Under the old regime: rebate up to ₹12,500 if net taxable income does not exceed ₹5 lakh.
What are the income tax slabs for senior citizens in India?
Under the old regime, senior citizens (60–80 years) get a basic exemption limit of ₹3 lakh instead of ₹2.5 lakh. Super senior citizens (80+) get ₹5 lakh basic exemption. They also get enhanced deductions under 80D for health insurance. Under the new regime, the basic exemption, slabs, and rebate are the same for all age groups — the new regime does not provide special benefits for senior citizens beyond what all taxpayers receive.
How does the ₹75,000 standard deduction work in the new regime?
From FY 2024-25 onwards, salaried employees and pensioners can claim a flat standard deduction of ₹75,000 under the new tax regime (increased from ₹50,000). This means if your gross salary is ₹12,75,000, your net income after standard deduction is ₹12,00,000 — which falls within the 87A rebate limit, making your tax liability zero. The standard deduction is separate from section 80C and other deductions.