Compare the new and old regimes. Add each exemption and deduction separately — every field applies its own statutory cap.
Surcharge and marginal relief are included. Section 87A marginal relief is applied just above ₹12 lakh in the new regime. Capital gains taxed at special rates are not covered. This is an estimate for salaried individuals, not tax advice.
Compare the new and old regimes on your own numbers. Add each exemption and deduction separately — every field applies its own statutory cap, and surcharge and marginal relief are included.
The new tax regime is now the default. For most salaried people the only question that matters is whether the old regime still costs less once you count everything you can genuinely claim — and that answer changes with your rent, your home loan and how much of your 80C limit you actually use.
This calculator works both regimes side by side on the same income, applies the statutory cap on every deduction as you enter it, and tells you the exact level of deductions at which the old regime would overtake the new one.
The calculator sits at the top of this page and updates as you type. Nothing is submitted anywhere and you do not need to enter your name or email.
Step 1: Enter your gross annual salary, and any other income such as interest, rent or freelance earnings.
Step 2: Choose your age band. Under the old regime the basic exemption rises at 60 and again at 80, and the 80D and 80TTB limits increase with it. The new regime uses one set of slabs for everyone.
Step 3: Leave “I am salaried” ticked to apply the standard deduction — ₹75,000 in the new regime, ₹50,000 in the old.
Step 4: Open Employer NPS contribution if your employer contributes to NPS. This is one of the very few deductions the new regime still allows, which is why it sits above the old-regime sections.
Step 5: Open each old-regime section and enter what you can claim — salary exemptions such as HRA and LTA, investments under 80C and 80CCD(1B), health cover under 80D, and home or education loan interest. Each field shows its own cap, and anything entered above the cap is flagged rather than silently counted.
Step 6: Read the two cards. The cheaper regime is highlighted, and the line beneath tells you how much more in deductions the old regime would need to catch up.
The tax calculations provided by HivePayroll tax calculator give you a basic understanding of the Income Tax Provisions and therefore do not specifically advise you for your personal tax and investments. For accurate calculations and tax advice, contact your tax consultant. The values calculated by this calculator are an exclusive result of the values you have provided to the calculator and the recent tax laws applicable at the time of this calculation. This may change subject to changes in your circumstance or changes in the tax laws.
This interactive does not constitute an offer or solicitation for the purchase or sale of any HivePayroll products or tax advice or as an official confirmation of any transaction. ITB Group or HivePayroll or any person working directly or indirectly with ITB is not responsible for any loss or damage that may arise to any person from any inadvertent error in the information reported by the calculator.
These calculations are for reference purposes only and should not be used by any individual or group or accountants for themselves or to give consulting or advice to others or for other individuals. The information should not be reproduced or passed or redistributed in any form directly or indirectly to any other person or published, copied, in whole or in part, for any purpose. The calculation done by the income tax calculator is as of the date of this report and there can be no assurance that future results or events will be consistent with the same results. This information is subject to change without any prior notice.
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Since the new regime became the default, the only question most salaried people need answered is which one costs less on their own numbers. There is no general answer — it depends entirely on how much you can genuinely claim.
The rough shape of it:
So the old regime wins only if your deductions are large enough to outweigh the worse slabs. The calculator above tells you the exact figure at which that happens on your income — not a rule of thumb.
| Relief | New regime | Old regime | Cap |
|---|---|---|---|
| Standard deduction | Yes | Yes | ₹75,000 new / ₹50,000 old |
| Employer NPS — 80CCD(2) | Yes | Yes | 14% of salary |
| HRA exemption | No | Yes | Least of three |
| LTA | No | Yes | Actual travel |
| 80C | No | Yes | ₹1,50,000 |
| Your NPS — 80CCD(1B) | No | Yes | ₹50,000 |
| 80D health insurance | No | Yes | ₹25,000, ₹50,000 if 60+ |
| 80TTA / 80TTB interest | No | Yes | ₹10,000, ₹50,000 if 60+ |
| Home loan interest — 24(b) | No | Yes | ₹2,00,000 self-occupied |
| 80E education loan interest | No | Yes | No cap, 8 years |
| Professional tax | No | Yes | ₹2,500 |
80CCD(2) is the one people miss. Employer contribution to NPS survives in the new regime, which is why it sits outside the old-regime block in the calculator. If your employer offers it and you are on the new regime, it is one of very few deductions still open to you.
| New regime | Rate | Old regime | Rate |
|---|---|---|---|
| Up to ₹4,00,000 | Nil | Up to ₹2,50,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% | ₹2,50,001 – ₹5,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% | ₹5,00,001 – ₹10,00,000 | 20% |
| ₹12,00,001 – ₹16,00,000 | 15% | Above ₹10,00,000 | 30% |
| ₹16,00,001 – ₹20,00,000 | 20% | Basic exemption rises to ₹3,00,000 at 60, and ₹5,00,000 at 80. | |
| ₹20,00,001 – ₹24,00,000 | 25% | Section 87A rebate: up to ₹12,500 where taxable income is ₹5 lakh or less. | |
| Above ₹24,00,000 | 30% | Health and education cess of 4% applies to both. | |
The 87A rebate of up to ₹60,000 applies where taxable income does not exceed ₹12 lakh. Read literally, earning one rupee more would cost you tens of thousands in tax.
It does not work that way. Marginal relief caps your tax at the amount by which your income exceeds ₹12 lakh. On a taxable income of ₹12.25 lakh the tax is ₹25,000 plus cess — the ₹25,000 of excess income — not the ₹63,750 the slabs alone would produce. The calculator applies this.
Above ₹50 lakh a surcharge applies: 10% to ₹1 crore, 15% to ₹2 crore, 25% to ₹5 crore and 37% above — though the new regime caps it at 25%.
At each threshold, marginal relief again ensures the extra tax never exceeds the extra income. Most free calculators either ignore surcharge entirely or apply it without relief, and both produce a materially wrong number for higher earners. This one includes it.
A salaried person on ₹12,00,000 with ₹1,50,000 of 80C:
At this income the old regime would need roughly ₹7 lakh of total deductions before it caught up — which for most people means a large home loan on top of a full 80C, HRA and 80D.
Under the new regime, yes — and up to ₹12.75 lakh if you are salaried, because the ₹75,000 standard deduction brings taxable income down to ₹12 lakh, where the 87A rebate of up to ₹60,000 cancels the tax entirely.
Marginal relief applies. Your tax cannot exceed the amount by which your income crosses ₹12 lakh, so there is no cliff — the liability rises gradually rather than jumping.
Very few. The standard deduction of ₹75,000 and your employer’s NPS contribution under 80CCD(2) are the ones that matter for most salaried people. HRA, 80C, 80D and home loan interest are not available.
A salaried person without business income can choose afresh each year when filing. If you have business income the choice is far more restricted and switching back is generally once in a lifetime.
Yes, including marginal relief at every threshold, and the new regime’s 25% cap. Income taxed at special rates — capital gains, for instance — is not covered.
Under the old regime, yes: the basic exemption rises to ₹3,00,000 at 60 and ₹5,00,000 at 80, and the 80D and 80TTB limits increase. The new regime has one set of slabs for all ages. Set your age in the calculator and it applies the right ones.
Calculating your own tax once a year is arithmetic. Doing it for every employee, every month, as declarations arrive and salaries change, is a system.
In HivePayroll employees submit their own investment declarations, the form filters what it offers by their regime, and the accepted figures flow straight into the monthly TDS deduction, the employee’s own tax sheet and the quarterly Form 24Q. See TDS and income tax management, or book a free demo.
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