Stop 4 of 7
New regime vs old regime
Two ways to work out your tax, side by side, so you know which one you are looking at.
Under the Income Tax Act, 2025 — as under the old law in recent years — there are two ways ("regimes") to work out your income tax. Both use the same idea — tax-free income, then rising rates on the rest — but with different slabs, and different rules about what you can subtract from your income.
The new regime is the default: if you don't actively choose otherwise, this is the one used. It has lower rates in most slabs, but does not let you claim most of the deductions the old regime allows.
The old regime is the one that existed before, still available if you choose it — you have to actively choose it when you file your return, by the return's due date. It lets you subtract several kinds of payment from your income before tax is worked out — for example, money put into provident fund or life insurance, health insurance premiums, and interest on a home loan for a house you live in. The full list, with each one's limit, is on the deductions page.
New regime slabs
These slabs are the same for everyone, whatever your age. Each rate applies only to the slice of income inside that row, not your whole income — section 202(1) (old law: 115BAC(1A)).
| Total income* | Tax rate* |
|---|---|
| Up to ₹4,00,000 | No tax |
| More than ₹4,00,000, up to ₹8,00,000 | 5% |
| More than ₹8,00,000, up to ₹12,00,000 | 10% |
| More than ₹12,00,000, up to ₹16,00,000 | 15% |
| More than ₹16,00,000, up to ₹20,00,000 | 20% |
| More than ₹20,00,000, up to ₹24,00,000 | 25% |
| More than ₹24,00,000 | 30% |
Old regime slabs
Under the old regime, the tax-free amount depends on your age on the last day of the tax year. A senior citizen is someone aged 60* or more (Finance Act 2026, First Schedule (old law: Finance Act, First Schedule)); a super senior citizen is someone aged 80* or more (Finance Act 2026, First Schedule (old law: Finance Act, First Schedule)). Everyone younger counts as below senior age.
Below 60* years — Finance Act 2026, First Schedule (old law: Finance Act, First Schedule):
| Total income* | Tax rate* |
|---|---|
| Up to ₹2,50,000 | No tax |
| More than ₹2,50,000, up to ₹5,00,000 | 5% |
| More than ₹5,00,000, up to ₹10,00,000 | 20% |
| More than ₹10,00,000 | 30% |
60* to 79* years (senior citizen):
| Total income* | Tax rate* |
|---|---|
| Up to ₹3,00,000 | No tax |
| More than ₹3,00,000, up to ₹5,00,000 | 5% |
| More than ₹5,00,000, up to ₹10,00,000 | 20% |
| More than ₹10,00,000 | 30% |
80* years or more (super senior citizen):
| Total income* | Tax rate* |
|---|---|
| Up to ₹5,00,000 | No tax |
| More than ₹5,00,000, up to ₹10,00,000 | 20% |
| More than ₹10,00,000 | 30% |
Comparing the two for the same person
Worked example
Deepak earns a salary of ₹10,00,000 a year. During the year he puts ₹1,50,000 into provident fund and life insurance, and pays ₹25,000 in health insurance premiums for himself and his family.
Under the new regime, these payments don't reduce his tax — his total income is ₹9,25,000 and his tax works out to ₹0*.
Under the old regime, the same payments are subtracted from his income before tax — his total income is ₹7,75,000 and his tax works out to ₹70,200*.
Which regime costs Deepak less depends on his own numbers — that's exactly what the calculator works out for you, using your own income and deductions.
This page covers tax year 2026-27 (1 April 2026 to 31 March 2027). For the official rules, see incometax.gov.in.