Income Tax Calculator
Compare your income tax under the old and new regimes for FY 2025-26 and pick the cheaper one.
Estimates for FY 2025-26 including the standard deduction, Section 87A rebate and 4% cess. Incomes above ₹50 lakh attract a surcharge not modelled here — consult a CA.
About the Income Tax Calculator
Since the new tax regime became the default, the single most common question for every salaried Indian is: which regime costs me less? The AlarmDaddy Income Tax Calculator answers it directly. Enter your annual income and key deductions, and it computes your tax under both the old regime (with all your exemptions and deductions) and the new regime (lower slab rates but almost no deductions), then tells you which one saves you money and by how much.
Enter your gross annual salary, then your deductions if you want to test the old regime — Section 80C investments (up to ₹1.5 lakh), 80D health insurance, HRA exemption, home loan interest, and the standard deduction. The calculator applies the latest slab rates for both regimes, factors in the standard deduction and the Section 87A rebate, adds health-and-education cess, and shows the final tax payable under each.
The new regime usually wins for people with few deductions; the old regime usually wins for those who maximise 80C, HRA, and home-loan interest. There is no universal answer — that is exactly why this side-by-side comparison exists.
How to use this calculator
- 1Enter your gross annual income.
- 2Enter your deductions (80C, 80D, HRA, home loan interest) to evaluate the old regime.
- 3The calculator applies the standard deduction automatically.
- 4Read your tax under both regimes side by side.
- 5See the recommended regime and the amount you save by choosing it.
The formula
Each regime applies its own slab rates to taxable income (after the standard deduction and, for the old regime, your declared deductions). The Section 87A rebate zeroes out tax below the rebate threshold. A 4% health and education cess is added on the resulting tax. The calculator runs this twice — once per regime — and compares.