How to Use the Income Tax Calculator (FY 2025-26 & FY 2026-27)

Choosing between the old and new tax regime isn’t a one-time decision you can guess your way through a small change in your salary, deductions, or age bracket can shift which regime actually saves you money. This calculator does the comparison for you in seconds, using the income tax slabs notified for FY 2025-26 (AY 2026-27) and FY 2026-27 (AY 2027-28).

Here’s how to get an accurate result from it.

Step 1: Pick your financial year

At the top of the calculator, choose FY 2025-26 or FY 2026-27 depending on which year you’re planning for. If you’re filing a return for income already earned, pick the year that income belongs to. If you’re planning ahead — for example, deciding how to structure your salary for the months to come — pick the upcoming year.

Step 2: Enter your annual gross salary

Enter your total salary income for the year, before any deductions are subtracted. This should be the gross figure — basic pay, allowances, and any other components that form part of your salary, added together. Don’t subtract PF, professional tax, or anything else here; the calculator handles deductions separately in the next step.

Step 3: Select your age category

Your age category only affects the old regime calculation, since the new regime uses the same slabs for everyone regardless of age:

• Below 60 — standard slabs apply
• 60 to 80 (senior citizen) — a higher tax-free threshold applies under the old regime
• Above 80 (super senior citizen) — the highest tax-free threshold applies under the old regime

Step 4: Fill in your deductions (only needed if you might choose the old regime)

The new regime doesn’t allow most deductions, so this section only changes your old regime result. Fill in whichever of these apply to you:

• Section 80C — your total investment in PF, ELSS mutual funds, life insurance premiums, tax-saving fixed deposits, and similar instruments. The maximum you can claim is ₹1,50,000.
• Section 80D — the health insurance premium you’ve paid. The limit is ₹25,000 generally, or ₹50,000 if you or your covered parent is a senior citizen.
• HRA exemption — enter the exempt portion of your House Rent Allowance, not the full HRA you receive. If you haven’t worked this out yet, it’s calculated as the lowest of: actual HRA received, rent paid minus 10% of basic salary, or 50%/40% of basic salary depending on your city. A dedicated HRA calculator can help you arrive at this figure first.

If you’re confident you’ll go with the new regime anyway, you can leave this section at zero — it won’t affect that side of the comparison.

Step 5: Calculate and read your results

Click Calculate My Tax. You’ll see:

• A banner telling you which regime works out cheaper for the numbers you entered, and by how much
• Two side-by-side totals for the old and new regime, with the lower one marked
• A full breakdown table showing how each number was arrived at — taxable income, tax before rebate, the Section 87A rebate, surcharge (if applicable), and the 4% health and education cess

If you want to test a different scenario — a different salary, or how an extra 80C investment would change things just update the fields and click Calculate again.

Which regime should you pick?

There’s no universal answer; it depends on how much you can genuinely claim in deductions. As a general pattern:

• If your 80C, 80D, HRA, and other eligible deductions add up to a large amount, the old regime often works out cheaper.
• If you claim few or no deductions, the new regime’s wider slabs and higher standard deduction usually work in your favor.

Run both scenarios through the calculator with your real numbers rather than relying on a rule of thumb that’s the whole point of comparing them side by side.

What this calculator doesn’t cover

To keep the numbers reliable, this tool is built specifically for salaried individuals and does not account for:

• Business or professional income
• Capital gains (from shares, property, mutual funds, etc.)
• Income from sources taxed at special rates
• Every deduction available under the Income Tax Act — only the most commonly used ones are included
• Full HRA computation (you’ll need to work out your exempt HRA amount separately and enter it directly)

Frequently Asked Questions

Is this calculator accurate for the current financial year?
It uses the income tax slabs, standard deduction, and rebate limits as notified for FY 2025-26 and FY 2026-27. Tax rules can change with each Union Budget, so always cross-check significant decisions against the latest notification from the Income Tax Department.

Do I need to enter my deductions if I want to check the new regime?
No. The new regime doesn’t allow most deductions, so the calculator ignores the deduction fields for that side of the comparison automatically.

What if my numbers show “the same” tax under both regimes?
This can happen at certain income levels, particularly when deductions are minimal. In that case, other factors — like ease of compliance or future flexibility — may guide your choice more than the tax amount itself.

Can I switch between the old and new regime every year?
Salaried individuals (without business income) can generally choose their preferred regime each financial year when filing their return. Those with business income face restrictions on switching, so it’s worth checking current rules if that applies to you.

Does this calculator file my return or store my data?
No. It only performs a calculation in your browser — nothing you enter is saved, submitted, or sent anywhere.

Disclaimer: This calculator provides an estimate based on published income tax slabs for salaried individuals and is meant for general planning purposes only. It does not constitute tax advice. Please verify your final tax liability with a qualified tax professional or the Income Tax Department before filing your return.