Old vs New Regime Tax Calculator with HRA
Enter a salary and your deductions to see the tax under both regimes side by side, with the HRA exemption worked out and every step of the computation shown.
Free, no login. Runs entirely in your browser — nothing you type or upload is sent to our servers.
Old-regime deductions (80C, 80D, home loan…)
Statutory figures verified as of 30/09/2026 against Income Tax Department — tax slabs , Income Tax Department — AY 2025-26 (FY 2024-25) slabs , Memorandum to the Finance (No. 2) Bill 2024 , CBDT Circular 3/2025 — TDS on salary FY 2024-25 , TaxGuru — Finance (No. 2) Act 2024 amendments , Income-tax Rules 2026 (G.S.R. 198(E)) , TaxGuru — HRA 8 cities , ClearTax — slabs FY 2025-26 & 2026-27 , Constitution (Sixtieth Amendment) — Art. 276(2) ₹2,500 ceiling and Income-tax Act 2025 s.19 — deductions from salary .
A computational aid, not professional advice. Check results against the governing law, notifications and your own judgement before relying on them.
How the tax is worked out
- HRA exemption (old regime only) is deducted from gross salary.
- Then the standard deduction and, under the old regime, professional tax.
- Then deductions: employer NPS under both regimes (capped at 14% of basic + DA under the new regime and 10% under the old, or 14% under the old for Central or State Government employers); 80C, 80CCD(1B), 80D and home-loan interest under the old regime only, each up to its limit.
- Taxable income is rounded to the nearest ₹10, then the slab rates apply.
- The rebate, surcharge (with marginal relief) and 4% health and education cess follow, and the tax is rounded to the nearest ₹10.
This is the same method AuditorTax uses to project TDS on salary in every payroll run.
TDS on salary, computed every payroll run
AuditorTax projects salary TDS for every employee each month from their declarations, under whichever Income-tax Act governs the year, and snapshots the rules it used.
Frequently asked questions
Which is better for salaried employees, the old or the new regime?
It depends on your deductions. The new regime has lower rates, a ₹75,000 standard deduction and no tax up to ₹12 lakh of taxable income thanks to the rebate (₹7 lakh for FY 2024-25). The old regime can still win when HRA, 80C, 80D and home-loan interest together are large. Enter your figures to see both side by side.
What changed between FY 2024-25 and FY 2025-26?
Only the new regime changed. For FY 2024-25 its slabs are nil up to ₹3 lakh, 5% up to ₹7 lakh, 10% up to ₹10 lakh, 15% up to ₹12 lakh, 20% up to ₹15 lakh and 30% above, and the section 87A rebate (up to ₹25,000) applies up to ₹7 lakh of taxable income. From FY 2025-26 the slabs widen and the rebate rises to ₹60,000 up to ₹12 lakh. The ₹75,000 standard deduction, the 25% surcharge cap, 4% cess and the 14% employer NPS limit apply in both years. The old regime is the same in all three years.
Which cities count as metro for HRA?
For FY 2024-25 and FY 2025-26: Delhi, Mumbai, Kolkata and Chennai. From Tax Year 2026-27, the Income-tax Rules 2026 add Bengaluru, Hyderabad, Pune and Ahmedabad. In these cities the HRA limit is 50% of basic + DA; everywhere else it is 40%.
How is HRA exemption calculated?
It is the least of three amounts: the HRA you received, the rent you paid minus 10% of basic + DA, and 50% (metro) or 40% (other cities) of basic + DA. It is available only under the old regime.
Which law applies from April 2026?
Salary paid from 1 April 2026 is taxed under the Income-tax Act, 2025, which replaced the 1961 Act. The sections are renumbered (TDS on salary is now section 392), but the slabs, standard deduction, rebate, surcharge and cess are the same as FY 2025-26.
Is my salary data sent anywhere?
No. The calculation runs in your browser.