Income Tax & Take-Home Paycheck Calculator (India New vs. Old Regime)

Compare New vs. Old Tax Regime liability, Section 87A rebate, 4% cess, and net monthly take-home paycheck.

Recommended: New Tax Regime (Saves ₹1,22,200)
₹1,37,433/mo Take-Home
New Regime Tax: ₹1,50,800 • Old Regime Tax: ₹2,73,000 (incl. 4% cess)
New Tax Regime (₹75k Std Ded) ₹1,50,800
Old Tax Regime (With Deductions) ₹2,73,000
New Tax Regime Savings ₹1,22,200
Effective Tax Rate 8.38%
Inputs
⚡ Scenarios:
₹ / yr
Total annual gross salary before standard deduction.
₹ / yr
Combined HRA, Section 80C (up to ₹1.5L), 80D health insurance, and home loan interest.
Results & Graph
Recommended: New Tax Regime (Saves ₹1,22,200)
₹1,37,433/mo Take-Home
New Regime Tax: ₹1,50,800 • Old Regime Tax: ₹2,73,000 (incl. 4% cess)
New Tax Regime (₹75k Std Ded)
₹1,50,800
Old Tax Regime (With Deductions)
₹2,73,000
New Tax Regime Savings
₹1,22,200
Effective Tax Rate
8.38%

Annual Gross Salary vs. New & Old Regime Tax (₹)

Net Annual Take-Home Pay vs. Income Tax & Cess
Graph 1 • Annual Gross Salary vs. New & Old Regime Tax (₹) Net Annual Take-Home Pay vs. Income Tax & Cess
Net Annual Take-Home Pay: 1,649,200 INRNew Tax Regime Liability: 150,800 INROld Tax Regime Liability: 273,000 INR Net Annual Take-Home Pay 1,649,200 INR New Tax Regime Liability 150,800 INR Old Tax Regime Liability 273,000 INR
Graph 2 • Proportional Share Ring Net vs. tax/interest share
TOTAL 2.07M Net Annual Take-Home Pay 1.65M (79.6%) New Tax Regime Liability 150.8k (7.3%) Old Tax Regime Liability 273.0k (13.2%)
Graph 3 • Effective Tax Rate (%) Across Gross Income Levels (New Tax Regime) Statutory benchmark comparison across brackets or years
0% 12.0% 23.9% ₹12L: 0 % 0 ₹12L ₹15L: 6.5 % 6.5 ₹15L ₹18L: 8.38 % 8.4 ₹18L ₹24L: 12.65 % 12.7 ₹24L ₹30L: 16.29 % 16.3 ₹30L ₹50L: 22.15 % 22.1 ₹50L
Summary: New Regime tax is ₹1,50,800 and Old Regime tax is ₹2,73,000.
Summary: On a gross salary of ₹18,00,000 (₹18 L) with ₹2,50,000 in Chapter VI-A / HRA deductions, your tax liability is ₹1,50,800 under the New Tax Regime and ₹2,73,000 under the Old Tax Regime. Choosing the New Tax Regime saves ₹1,22,200 and yields an estimated monthly post-tax paycheck of ₹1,37,433.
⚡ Send result to: ELSS 80C SIP →PPF Calculator →EPF (India) →
Interactive chart & math engine powered by CalculatorGraph

Formula & Mathematical Methodology: Finance Act Slab Computation & Section 87A Rebate

Taxablenew = max(0,   Gross − ₹75,000),   Total Tax = Slab Tax × 1.04
New Taxable = max(0, Gross − 75,000); Old Taxable = max(0, Gross − 50,000 − Deductions); TotalTax = BaseSlabTax × 1.04
  • ₹75,000 vs ₹50,000: Salaried standard deduction under New Regime (₹75k) vs. Old Regime (₹50k)
  • 1.04: 4% Health and Education Cess applied to base tax

Rounding: Rounded to nearest rupee.

Worked Example: ₹18,00,000 Gross Salary with ₹2,50,000 Old-Regime Deductions

Compare New Regime vs. Old Regime tax on ₹18 Lakhs annual income.

  1. New Regime taxable income = ₹18,00,000 − ₹75,000 = ₹17,25,000 → Base tax = ₹1,45,000 + 4% cess = ₹1,50,800.
  2. Old Regime taxable income = ₹18,00,000 − ₹50,000 − ₹2,50,000 = ₹15,00,000 → Base tax = ₹2,62,500 + 4% cess = ₹2,73,000.
  3. New Tax Regime saves ₹1,22,200/year, giving a post-tax take-home of ₹1,37,433/month.
Result: New Tax Regime saves ₹1,22,200 (₹1,50,800 vs. ₹2,73,000 tax).

Frequently Asked Questions

Up to what salary is income tax zero under the New Tax Regime?

With the ₹12,00,000 Section 87A taxable-income rebate threshold plus the ₹75,000 salaried standard deduction, salaried individuals earning up to ₹12,75,000 gross per year pay zero income tax under the New Regime.

Finance & Investing · Income Tax & Payroll

Income Tax & Take-Home Paycheck Calculator (India New vs. Old Regime): inputs, method, and how to read the result

Compare New vs. Old Tax Regime liability, Section 87A rebate, 4% cess, and net monthly take-home paycheck.

Choose inputs for the case you are checking

The defaults are illustrative. Replace them with values for your case and keep the units shown beside each field.

  • Gross Annual Salary Income: Total annual gross salary before standard deduction.
  • Total Old-Regime Deductions (80C + 80D + HRA): Combined HRA, Section 80C (up to ₹1.5L), 80D health insurance, and home loan interest.

What the calculation includes

With the default values shown, Recommended: New Tax Regime (Saves ₹1,22,200) is ₹1,37,433/mo Take-Home. The calculation follows Finance Act Slab Computation & Section 87A Rebate; the formula and variable definitions above show how the inputs combine.

One-input check: With the other defaults held constant, changing Gross Annual Salary Income from 1,800,000 ₹ / yr to 1,980,000 ₹ / yr changes Recommended: New Tax Regime (Saves ₹1,22,200) (₹1,37,433/mo Take-Home) to Recommended: New Tax Regime (Saves ₹1,40,920) (₹1,49,313/mo Take-Home). This is a comparison inside the calculator's stated model, not a prediction.

Where to use caution

  • Applies current Finance Act ₹4L-step slabs under the New Tax Regime (0% up to ₹4L, 5% ₹4–8L, 10% ₹8–12L, 15% ₹12–16L, 20% ₹16–20L, 25% ₹20–24L, 30% >₹24L) with full 87A rebate up to ₹12L taxable income.
  • Excludes high-income surcharge (applicable above ₹50 Lakhs taxable income) and marginal relief adjustments.

Scope: India (Finance Act New vs. Old Regime Slabs) Check the assumptions and limitations against your situation before relying on the estimate.

More in Finance & Investing: ELSS Tax-Saving SIP Calculator (Section 80C), PPF Calculator (Public Provident Fund), EPF Calculator (Employees Provident Fund).