Salary and income tax calculator: old vs new regime

How to use this tool

1. Choose year and age Pick the tax year and your age group, then say whether you know your CTC or your gross salary.
2. Enter your income Type your CTC, basic pay % and HRA from the offer letter, or your gross salary from Form 16. Add other income if any.
3. Compare both regimes See the tax in each regime, which one is lower, and the deductions you would need for the old regime to win.
4. Add your deductions For the old regime, add 80C, health insurance, NPS, home-loan interest and rent for HRA. Limits are applied for you.
5. Check slabs and in-hand pay See tax slab by slab, and your monthly in-hand salary after PF, professional tax and TDS.

Choosing a regime

• The new regime is the default. Salaried people can choose the old regime when filing the return each year.
• Tell your employer your choice early in the year so monthly TDS is right.
• If the old regime needs deductions you do not really have, choose the new regime. Do not buy products only to save tax.

Numbers to keep handy

• Offer letter or payslip: basic, HRA, PF, variable pay.
• Proofs for 80C, 80D, NPS, home-loan interest certificate, rent receipts.
• Form 26AS / AIS for interest and other income.

About this calculator

• For resident salaried individuals. Capital gains, business income and special-rate income are not included.
• Tax rates are from the Income Tax Department page, checked 13 October 2026. The 8-city HRA list for 2026-27 is from a secondary source; confirm with the final rules.
• Your data stays in your browser. This is an estimate, not tax advice; ask a tax professional for your case.

Questions about this tool

Is salary up to ₹12.75 lakh tax-free?

Yes, in the new regime for resident individuals. ₹12.75 lakh minus the ₹75,000 standard deduction is ₹12 lakh, and the rebate makes tax nil up to ₹12 lakh.

What is marginal relief?

If your taxable income is just above ₹12 lakh, your tax is limited to the income above ₹12 lakh. So earning a little more never leaves you with less.

What changed with the Income-tax Act, 2025?

From 1 April 2026 the new Act replaces the 1961 Act and uses “tax year” instead of “assessment year”. Section numbers changed. For 2026-27 the slab rates stay the same.

How is HRA exemption calculated?

It is the lowest of: HRA received, rent paid minus 10% of basic, and 50% of basic (listed cities) or 40% (other places). It is allowed only in the old regime.

Why is my in-hand lower than CTC ÷ 12?

CTC includes employer PF, gratuity and variable pay, which are not paid monthly. Your PF, professional tax and TDS are also cut from the monthly salary.