Income Tax Calculator 2026 — Old vs New Regime Explained
The single biggest decision on your return is which regime to file under. A calculator removes the guesswork — but you should understand what it's comparing.
Quick Answer
An income tax calculator computes your tax under both the old and new regimes and shows which leaves more in your pocket. The new regime has lower slab rates and a large Section 87A rebate but very few deductions; the old regime has higher rates but lets you claim 80C, HRA, home loan interest, and more. The right choice depends on how many deductions you actually use.
✓Key Takeaways
- The new regime is the default — you must opt out to use the old one.
- New regime: lower rates + a standard deduction of ₹75,000 for salaried, but almost no other deductions.
- Old regime: claim 80C, 80D, HRA, home loan interest, and more.
- Rule of thumb: heavy deductions favour the old regime; few deductions favour the new.
What the calculator actually compares
You enter your salary/income, then your deductions. The calculator runs two computations:
- New regime — applies the lower slab rates to your income minus the ₹75,000 standard deduction, then the Section 87A rebate.
- Old regime — subtracts all your eligible deductions (80C, 80D, HRA, home loan interest, etc.), then applies the higher slab rates and rebate.
It then shows the net tax under each and the winner.
The deductions that swing the result
| Deduction | Old regime | New regime |
|---|---|---|
| Standard deduction (salaried) | ₹50,000 | ₹75,000 |
| Section 80C (PPF, ELSS, LIC) | Up to ₹1.5 lakh | Not allowed |
| Section 80D (health insurance) | Allowed | Not allowed |
| HRA exemption | Allowed | Not allowed |
| Home loan interest (self-occupied) | Up to ₹2 lakh | Not allowed |
A simple way to decide
- Add up the deductions you genuinely claim (80C + 80D + HRA + home loan interest).
- If that total is large, the old regime usually wins.
- If it's small or zero, the new regime's lower rates usually win.
- When close, the calculator settles it to the rupee.
Don't forget the rebate
Both regimes offer a Section 87A rebate that can bring tax to zero up to a threshold income — the new regime's rebate threshold is more generous. The calculator factors this in automatically, so you see the real take-home tax.
Frequently Asked Questions
Can I switch regimes every year?
Salaried individuals without business income can choose the regime each year when filing. Those with business income face restrictions on switching back.
Does the calculator include cess?
Yes, a good calculator adds the 4% health and education cess and any surcharge, so the figure is your actual liability.
Which regime should most salaried people pick?
If you max out 80C, claim HRA, and pay a home loan, the old regime often wins. If you don't, the new regime usually does. Try our calculator to be sure.
Want a human to confirm and file? Our ITR filing service picks the optimal regime for you.
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