Salary After Tax Calculator
See your income tax and net salary under both the new and old regimes, side by side.
Two tax regimes, two different answers, and no way to know which is cheaper without doing both calculations. This tool runs your income through the new and old regimes for FY 2026-27, applies the 87A rebate, surcharge and cess, and shows the slab-by-slab working for whichever comes out ahead.
Income and deductions
Result
Fill in the fields above and your result will appear here.
What the Salary After Tax Calculator does
The new regime has lower slab rates, a larger standard deduction of ₹75,000, and a full rebate that makes income up to ₹12 lakh effectively tax-free — but it disallows almost every deduction. The old regime has higher rates and a smaller standard deduction, and permits 80C, 80D, HRA exemption and home loan interest.
Which wins depends entirely on how much you genuinely claim. Someone paying substantial rent with a home loan and a fully used 80C limit often stays better off under the old regime. Someone without those usually does not.
How to use this tool
- Enter your annual gross salary — not CTC. Exclude employer PF and the gratuity provision, since neither is your income.
- Add any other income taxed at slab rates: bank interest, rent received, or freelance earnings.
- Fill in the deductions you actually claim, not the maximums you could theoretically reach. Only these affect the old regime.
- For HRA, enter the exempt portion rather than the HRA you receive — the two are rarely the same.
- Compare the two columns and read the slab breakdown to see exactly where each rupee of tax arises.
Formula and method
Taxable income = Gross − Standard deduction − Eligible deductions
Slab tax = Sum over slabs of (Income in slab × Slab rate)
Rebate 87A = Full slab tax, capped, if taxable income ≤ threshold
Surcharge = Rate on income above ₹50 lakh / ₹1 crore / ₹2 crore
Total tax = (Slab tax − Rebate + Surcharge) × 1.04 (4% cess)
The new regime also provides marginal relief just above the rebate threshold, so that earning one rupee more than ₹12 lakh cannot leave you worse off than earning exactly ₹12 lakh. That relief is applied here.
Worked example
Example: ₹15,00,000 salary with ₹1,75,000 of deductions
| New regime — taxable | ₹14,25,000 |
| New regime — tax | ≈ ₹1,05,000 |
| Old regime — taxable | ₹12,75,000 |
| Old regime — tax | ≈ ₹1,99,000 |
At this income the new regime wins comfortably. It would take roughly ₹4 lakh of deductions — a full 80C, a large HRA exemption and full home loan interest together — for the old regime to catch up.
What your result means
The effective tax rate is total tax divided by taxable income, and it is always lower than your top slab rate because the slabs are progressive. Someone in the 30% bracket rarely pays 30% overall.
The saving figure is what choosing correctly is worth. It is often between ₹20,000 and ₹1,00,000 a year, which makes running this calculation before declaring your regime worthwhile.
Monthly TDS is the annual tax divided by twelve. Your employer usually deducts more in the last quarter if investment proofs are not submitted on time.
Important considerations
- The new regime is the default. If you want the old one and have only salary income, you must tell your employer each year, and you can still change it when filing your return.
- Deductions only count if you can prove them. Declaring 80C investments you never make results in a shortfall at assessment.
- HRA exemption is the least of three amounts, not simply the HRA you receive. Calculate it properly before entering it here.
- With business or professional income, opting out of the new regime is a one-time choice with restricted ability to switch back. Take advice before deciding.
- Employer contributions to NPS under 80CCD(2) remain deductible under both regimes and are not covered by this tool.
Limitations of this tool
- This models slab-rate income only. Capital gains, lottery income, dividends taxed at special rates, and income from house property with a loss set-off are not covered.
- Slabs, rebate thresholds and surcharge rates are as configured for FY 2026-27 in the site's tax data file. Verify at incometax.gov.in before relying on the figure.
- Senior and super-senior citizen slab benefits under the old regime are not applied.
- Relief under Section 89 for arrears, and foreign tax credit, are outside the scope of the tool.
Frequently asked questions
Which tax regime should I choose?
Whichever produces the lower tax for your actual numbers — this tool shows both. As a rough guide, the new regime wins unless your total deductions exceed roughly ₹3.5–4 lakh, which usually requires a home loan and significant rent together.
Is income up to ₹12 lakh really tax-free?
Under the new regime as configured for FY 2026-27, the Section 87A rebate wipes out the tax on taxable income up to ₹12 lakh. With the ₹75,000 standard deduction, a salary of about ₹12.75 lakh can land at zero tax. Above that the rebate falls away, subject to marginal relief.
Can I change my regime every year?
If your income is only from salary, yes — you may choose each financial year, and you can even switch when filing your return regardless of what you declared to your employer. With business income the choice is far more restricted.
Why is my employer deducting more TDS than this shows?
Usually because your investment declarations have not been submitted or verified. Employers deduct conservatively until proofs arrive, then adjust in the final quarter. Any excess is refundable when you file your return.
Does this include professional tax?
No. Professional tax is a state levy, capped at ₹2,500 a year, and is deducted separately from your salary. The CTC to in-hand calculator includes it.