Income Tax Calculator
Calculate your income tax with PayClever — enter your Gross Total Income and deductions to see your taxable income, rebate, cess, and final liability under both regimes, side by side.
Your estimated tax
₹97,500 /year
- Recommended regime
- New regime
- You save
- ₹1,59,900/year
Old regime
Taxable income
₹14,50,000
Tax before rebate
₹2,47,500
Rebate
₹0
Cess (4%)
₹9,900
Total tax
₹2,57,400
New regime
Taxable income
₹14,25,000
Tax before rebate
₹93,750
Rebate
₹0
Cess (4%)
₹3,750
Total tax
₹97,500
Share your result
Estimated tax
₹97,500/year
New regime saves you ₹1.60 Lakh/year
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How your final tax liability is actually built up
Every income tax computation in India follows the same five steps, regardless of which regime you're under: start with your Gross Total Income, subtract whatever deductions you're eligible for to reach your taxable income, apply your regime's slab rates to that taxable income to get tax before rebate, subtract any rebate you qualify for, and finally add 4% Health & Education Cess on what's left. The regime you choose changes almost every number in that chain — different slabs, a different standard deduction, and a completely different rebate threshold — which is why the same income can produce meaningfully different final liabilities depending on which regime you run it through.
The rebate deserves special attention because it behaves nothing like a normal deduction. Instead of gradually reducing your tax as your income rises, it's a hard cliff: if your taxable income is at or under the threshold, your tax liability is wiped out entirely (up to the rebate's own cap); one rupee over that threshold, and you owe tax on the full slab calculation with no rebate at all. This is exactly why taxable income sitting right around ₹12,00,000 (new regime) or ₹5,00,000 (old regime) is worth double-checking carefully — a small additional deduction can be the difference between owing nothing and owing tens of thousands of rupees.
The old regime's real advantage isn't its slab rates — they're higher than the new regime's at every income level — it's the deductions stacked on top. Section 80C, 80D, 80CCD(1B), and Section 24(b) can together shelter a meaningful chunk of income from tax before the slabs are even applied, and unlike the new regime's single standard deduction, these genuinely respond to decisions you make (how much you invest, whether you have a home loan) rather than being fixed. Whether that adds up to more than the new regime's lower rates and higher rebate threshold depends entirely on how much of those deductions you can actually claim — which is exactly what running both regimes side by side, rather than assuming one is always better, is meant to answer.
Frequently asked questions
How is my final income tax liability actually calculated?
Start with your Gross Total Income (all income combined), subtract the deductions you're eligible for to get your taxable income, apply your regime's slab rates to get tax before rebate, subtract any rebate you qualify for, then add 4% Health & Education Cess on what's left — that final number is your total tax liability.
What deductions can I claim under the old tax regime?
Beyond the standard deduction (available under both regimes), the old regime allows Section 80C (up to ₹1,50,000 — investments like PPF, ELSS, life insurance), Section 80D (health insurance premiums, capped by age), Section 80CCD(1B) (an additional ₹50,000 for NPS, on top of 80C), and Section 24(b) (up to ₹2,00,000 in home loan interest for a self-occupied property) — plus HRA and any other Chapter VI-A deduction not listed here, which you can enter as a combined amount.
What is the tax rebate, and who gets it?
The rebate zeroes out your tax liability entirely if your taxable income falls at or below a threshold — currently ₹12,00,000 under the new regime (a rebate of up to ₹60,000) and ₹5,00,000 under the old regime (up to ₹12,500). It's a cliff, not a gradual reduction: cross the threshold by even ₹1 and the rebate no longer applies at all, so income right around these thresholds is worth double-checking.
Should I choose the old or new tax regime?
It comes down to how much you can actually claim in deductions. The new regime has lower rates and a higher rebate threshold but allows almost no deductions; the old regime has higher rates but lets you claim HRA, 80C, 80D, and more. As a rough rule of thumb, the more you can legitimately deduct — particularly a large HRA claim or a home loan — the more likely the old regime wins. This calculator runs both simultaneously so you don't have to guess.
How is this different from PayClever's Tax Regime Comparison calculator?
This calculator starts from a Gross Total Income you already know — useful if you have income from multiple sources or file taxes directly from your income statements. The Tax Regime Comparison calculator instead starts from your CTC and derives your Gross through the actual salary structure (employer PF, gratuity, professional tax). Use whichever matches how you actually know your numbers — both use the same underlying tax-slab engine.
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FY 2026-27 · Last updated September 2026
PayClever gives you an informational estimate, not tax, legal, or financial advice — check with a professional before acting on it.