Old vs New Tax Regime Calculator — FY 2026-27
Compare your income tax under the old and new regimes for FY 2026-27 (AY 2027-28). Budget 2025 slabs, ₹12L rebate, 80C/80D/HRA — see which regime saves more.
Old regime deductions
Only used for the old-regime calculation. New regime allows only standard deduction.
Slab breakdown
| Slab | Rate | Tax |
|---|---|---|
| ₹0.0L → ₹2.5L | 0% | ₹0 |
| ₹2.5L → ₹5.0L | 5% | ₹12,500 |
| ₹5.0L → ₹10.0L | 20% | ₹1,00,000 |
| ₹10.0L → ∞ | 30% | ₹81,750 |
Slab breakdown
| Slab | Rate | Tax |
|---|---|---|
| ₹0L → ₹4L | 0% | ₹0 |
| ₹4L → ₹8L | 5% | ₹20,000 |
| ₹8L → ₹12L | 10% | ₹40,000 |
| ₹12L → ₹16L | 15% | ₹33,750 |
About this calculator
The Indian Income Tax Act offers two parallel regimes. The old regime has lower slabs (0% up to ₹2.5L, 5% up to ₹5L, 20% up to ₹10L, 30% above) but allows dozens of deductions — 80C, 80D, HRA, LTA, home-loan interest, NPS, donations, education loan interest. The new regime has wider, lower slabs (Budget 2025: 0% up to ₹4L, then 5/10/15/20/25/30% in ₹4L bands) but allows only the standard deduction and a handful of niche items.
Budget 2025 made the new regime dramatically more attractive by raising the 87A rebate so that taxable income up to ₹12L pays zero tax. Combined with the ₹75,000 standard deduction (Budget 2024), salaried taxpayers earning up to ₹12.75L gross now owe nothing under the new regime. For higher salaries, the old regime can still beat the new — but only if you actually use ₹4–5L+ of deductions.
This calculator runs both computations side-by-side, applies the 87A rebate where applicable, adds 4% Health & Education Cess, and tells you which regime saves more. Surcharge for income above ₹50L is not modelled — for very high incomes please consult a Chartered Accountant.
How to compare regimes (5 steps)
- Enter gross income. Your full annual salary or business income before any deductions, in rupees.
- Pick age band. Below 60, 60–79 (senior), or 80+ (super senior). Old-regime slabs differ by age; new regime is the same for all.
- Toggle salaried. Salaried and pensioners get a standard deduction (₹50K old / ₹75K new). Self-employed do not.
- Fill old-regime deductions. 80C up to ₹1.5L, 80D health insurance, HRA exempt amount, home-loan interest 24(b) up to ₹2L, NPS extra ₹50K, professional tax.
- Read the recommendation. Right panel shows total tax under each regime, the difference, and the regime that saves more. Slab-by-slab breakdowns are below the inputs.
New regime slabs FY 2026-27 (Budget 2025)
| Income slab | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Use cases
- Pre-filing decision — old vs new before submitting Form 10-IEA
- Salary negotiation — what does a CTC bump actually mean post-tax?
- Investment planning — is it worth maxing 80C for the deduction?
- Comparing offers from two employers in different cities (HRA differs)
- Year-end tax-saving check — am I leaving deductions on the table?
- Joint planning with spouse — splitting investments across regimes
- Pensioner / senior citizen tax planning with higher exemption limits
- Quick sanity-check before filing ITR-1 / ITR-2
Frequently asked questions
+−What are the new tax regime slabs for FY 2026-27?
Budget 2025 set the new regime slabs as: ₹0–4L nil, ₹4–8L at 5%, ₹8–12L at 10%, ₹12–16L at 15%, ₹16–20L at 20%, ₹20–24L at 25%, and above ₹24L at 30%. With the enhanced 87A rebate, taxable income up to ₹12L pays zero tax. With the ₹75,000 standard deduction, salaried earners up to ₹12.75L gross effectively pay zero tax.
+−Should I choose old or new regime?
If your total old-regime deductions (80C + 80D + HRA exempt + home-loan interest + NPS + standard) cross roughly ₹4–5L on a ₹15L salary, the old regime usually wins. Below that, the new regime almost always wins because of the larger ₹75K standard deduction and the ₹12L rebate. The calculator shows both numbers — pick whichever is lower.
+−What is the 87A rebate in FY 2026-27?
Section 87A gives a rebate that wipes out tax liability for low-to-middle income earners. In the new regime (FY 2026-27), the rebate is up to ₹60,000, meaning anyone with taxable income up to ₹12L pays zero tax. In the old regime, the rebate is up to ₹12,500 for taxable income up to ₹5L. The rebate does not apply to income from special-rate sources (e.g. LTCG on equity).
+−Is the standard deduction available in both regimes?
Yes, but at different amounts. Salaried taxpayers and pensioners get ₹50,000 standard deduction in the old regime and ₹75,000 in the new regime (raised by Budget 2024). Self-employed taxpayers do not get standard deduction in either regime.
+−Can I claim HRA in the new regime?
No. HRA exemption under Section 10(13A) is not available in the new regime. Neither are 80C (PPF/ELSS/insurance), 80D (health insurance), 80E (education loan interest), 80G (donations) or home-loan interest 24(b) for self-occupied property. The only deductions in the new regime are standard deduction (₹75K), employer NPS contribution under 80CCD(2), and a few niche items.
+−Does the calculator include cess?
Yes. Health & Education Cess at 4% is added on top of the slab tax (after 87A rebate) and shown as a separate line in the result panel. Surcharge for income above ₹50L is not applied in this simple calculator — for high incomes please consult a CA.
+−Can I switch regimes every year?
Salaried taxpayers can switch between old and new regimes every year while filing ITR. Business and professional income earners can switch only once from new to old (and back to new only once after that). The new regime is the default from FY 2023-24 onwards — to opt for old you must explicitly choose it while filing.
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