Old vs New Tax Regime Calculator FY 2026-27
Compare your income tax under both regimes for FY 2026-27 (Tax Year 2026-27) and see exactly how much you save. FY 2025-26 is available too.
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- Live results as you type
Advanced optionsTax year, deductions and other settings (sensible defaults already applied)
Only affects the Old Regime exemption limit.
Your result
Your tax: ₹0 · New regime saves ₹1,17,000
In hand after income tax: ₹1,00,000/month (New Regime)
Show calculation: New RegimeEvery step, the rule behind it and the official source
1. Taxable income
- Gross income₹12,00,000
- Standard deduction₹75,000
Section 19 (earlier 16(ia)): ₹75,000 in the new regime · Income Tax Dept
- Taxable income₹11,25,000
2. Income tax
- Tax on slabs₹52,500
₹0–4L @ 0% ₹0 ₹4L–8L @ 5% ₹4,00,000 × 5% = ₹20,000 ₹8L–12L @ 10% ₹3,25,000 × 10% = ₹32,500 Section 202 (earlier 115BAC): new regime slab rates · Income Tax Dept
- Rebate₹52,500
Section 156 (earlier 87A): up to ₹60,000 off when taxable income is ₹12,00,000 or less · Income Tax Dept
- Tax after rebate₹0
- Health & education cess₹0
4% of income tax · Income Tax Dept: Tax rates
- Total income tax₹0
3. Take-home
- Gross income₹12,00,000
- Total income tax₹0
- Income after tax₹12,00,000
Each line is rounded for display, so adding the rounded lines can differ from the total by 1.
Show calculation: Old RegimeEvery step, the rule behind it and the official source
1. Taxable income
- Gross income₹12,00,000
- Standard deduction₹50,000
Section 19 (earlier 16(ia)): ₹50,000 in the old regime · Income Tax Dept
- Investments (PF, PPF, ELSS, insurance…)₹1,50,000
Section 123 (earlier 80C): up to ₹1,50,000 · Income Tax Dept
- Taxable income₹10,00,000
2. Income tax
- Tax on slabs₹1,12,500
₹0–2,50,000 @ 0% ₹0 ₹2,50,000–5L @ 5% ₹2,50,000 × 5% = ₹12,500 ₹5L–10L @ 20% ₹5,00,000 × 20% = ₹1,00,000 Old regime slab rates for FY 2026-27 · Income Tax Dept
- Tax after rebate₹1,12,500
- Health & education cess₹4,500
4% of income tax · Income Tax Dept: Tax rates
- Total income tax₹1,17,000
3. Take-home
- Gross income₹12,00,000
- Total income tax₹1,17,000
- Income after tax₹10,83,000
Each line is rounded for display, so adding the rounded lines can differ from the total by 1.
What if…Move a slider to see how your tax changes
Full breakdownTables, chart and tax-saving tips
The New Regime saves you ₹1,17,000 per year compared to the other regime.
Old Regime
Includes standard deduction + the deductions you entered above.
Total Tax Payable
₹1,17,000
Effective rate: 9.8%
New Regime
Flat ₹75,000 standard deduction. No 80C/80D/HRA benefit.
Total Tax Payable
₹0
Effective rate: 0.0%
| Breakdown | Old Regime | New Regime |
|---|---|---|
| Taxable Income (Annual) | ₹10,00,000 | ₹11,25,000 |
| Tax Payable (Annual) | ₹1,17,000 | ₹0 |
| Tax Payable (Monthly) | ₹9,750 | ₹0 |
| Take-Home (Annual) | ₹10,83,000 | ₹12,00,000 |
| Take-Home (Monthly) | ₹90,250 | ₹1,00,000 |
Old vs New Tax Regime: What You Need to Know
The New Tax Regime is the default for every taxpayer, though salaried people can still choose the Old Regime when filing. From 1 April 2026 the Income-tax Act, 2025 replaces the 1961 Act, so FY 2026-27 is also called Tax Year 2026-27. The slab rates are unchanged; only the section numbers moved: the new regime is now Section 202 (earlier 115BAC) and the rebate is Section 156 (earlier 87A). Taxable income up to ₹12,00,000 (₹12.75 lakh of salary after the ₹75,000 standard deduction) pays zero tax. The Old Regime keeps its deductions — Section 123 (earlier 80C), Section 126 (earlier 80D), HRA, home-loan interest and the extra NPS deduction in Section 124 (earlier 80CCD(1B)) — but taxes income above ₹5,00,000 at higher rates.
Which one should you pick? If you don't invest heavily in tax-saving instruments or pay significant home loan interest, the New Regime almost always works out cheaper because of its lower rates and larger standard deduction. If you claim ₹3,00,000 or more in combined deductions (80C + 80D + HRA + home loan interest), the Old Regime frequently comes out ahead, especially in the middle income brackets. This calculator runs both scenarios side by side using your actual numbers so you don't have to guess.
Note: This tool provides an estimate for salaried individuals and is not a substitute for professional tax advice. It does not account for capital gains, business income, or every possible deduction. Cess of 4% is added to tax in both regimes as per current law, and marginal relief is applied near the New Regime's ₹12,00,000 rebate threshold.
Want to see what lands in your account each month? Use the CTC to in-hand salary calculator, or check how much rent you can claim with the HRA exemption calculator before choosing the Old Regime.
Estimates for FY 2026-27 (Tax Year 2026-27) under the Income-tax Act, 2025. Switch the year above for belated or revised FY 2025-26 returns. Always verify with a qualified CA before filing.
How the old vs new regime calculator works
The calculator works out your income tax twice, once under each regime, using the FY 2026-27 (Tax Year 2026-27) rules of the Income-tax Act, 2025, then shows the cheaper one and the difference. Here is exactly what happens to your numbers.
- 1
New regime: standard deduction, then slabs
From your gross salary it takes off the ₹75,000 standard deduction under Section 19 (earlier 16(ia)). The rest is taxed at 0% up to ₹4 lakh, then 5%, 10%, 15%, 20% and 25% in ₹4 lakh steps, and 30% above ₹24 lakh (Section 202 (earlier 115BAC)). Deductions such as 80C, 80D and HRA are ignored because the new regime doesn't allow them.
- 2
Section 156 rebate and marginal relief
If taxable income is ₹12,00,000 or less, the rebate in Section 156 (earlier 87A) (up to ₹60,000) cancels the tax. Just above that, marginal relief caps the tax at the amount by which your income crosses ₹12,00,000, so a small raise never costs you more than it pays.
- 3
Old regime: every deduction you enter
It takes off the ₹50,000 standard deduction and the deductions you enter: Section 123 (earlier 80C) up to ₹1,50,000, health insurance under Section 126 (earlier 80D), your HRA exemption, home-loan interest under Section 22 (earlier 24(b)) up to ₹2,00,000 and NPS under Section 124 (earlier 80CCD(1B)) up to ₹50,000. The remainder is taxed at 5% above the basic exemption (₹2,50,000 below 60, ₹3,00,000 from 60 to 80, ₹5,00,000 above 80), 20% from ₹5 lakh and 30% above ₹10 lakh. A ₹12,500 rebate applies up to ₹5,00,000 of taxable income.
- 4
Cess and the comparison
Both totals get the 4% health and education cess. The calculator then compares them and tells you which regime costs less and by how much a year. Open “Show calculation” to see every slab and the official source behind each step.
Worked example: ₹18,00,000 salary with ₹4,05,000 of deductions
A salaried employee below 60 earns ₹18,00,000 and, in the old regime, would claim ₹1,50,000 under 80C, ₹25,000 of health insurance, ₹1,80,000 of HRA exemption and ₹50,000 in NPS. This is how the two regimes compare for FY 2026-27:
| New regime | Old regime | |
|---|---|---|
| Gross salary | ₹18,00,000 | ₹18,00,000 |
| Standard deduction | ₹75,000 | ₹50,000 |
| Other deductions | Not allowed | ₹4,05,000 |
| Taxable income | ₹17,25,000 | ₹13,45,000 |
| Income tax incl. 4% cess | ₹1,50,800 | ₹2,24,640 |
Here the new regime is cheaper by ₹73,840 a year. At an ₹18 lakh salary the old regime needs about ₹6,41,700 of deductions (besides the standard deduction) just to match the new regime, which is why it rarely wins without both HRA and a home loan.
Who should use this calculator
- Salaried employees deciding which regime to declare to their employer for TDS at the start of the year.
- Anyone with HRA, a home loan or large 80C investments who wants to know whether those deductions still beat the lower new-regime rates.
- People filing their FY 2026-27 return who want to check the regime their employer used. FY 2025-26 is available for belated or revised returns.
- Pensioners and senior citizens: set the age group to apply the higher old-regime exemption limits.
What this calculator doesn't cover
- Surcharge on income above ₹50 lakh is not added, so very high earners will see less tax than they owe.
- Capital gains and other special-rate income. Use the capital gains calculator for shares, mutual funds and F&O.
- Business or professional income, where the rules for switching regimes are stricter.
- Deductions beyond the ones listed (education loan interest, donations and others) unless you add them in “Other deductions”.
- It assumes you are a resident individual; the Section 156 rebate is not available to non-residents.
Read next
- Old vs new tax regime: complete guideSlabs, deductions, break-even table from ₹5 lakh to ₹50 lakh and how to choose.
- Section 156 rebate explainedWhy salary up to ₹12.75 lakh is tax-free and how marginal relief works.
- CTC to in-hand salary calculatorSee your monthly take-home pay under the regime you choose.
- HRA exemption calculatorWork out the HRA figure to enter for the old regime.
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FAQ
Frequently asked questions
Which is better for FY 2026-27, the old or the new tax regime?
For most salaried people the new regime is cheaper in FY 2026-27 (Tax Year 2026-27), thanks to lower slab rates, a ₹75,000 standard deduction and zero tax on taxable income up to ₹12 lakh. The old regime wins only when your deductions (80C, 80D, HRA, home-loan interest, NPS) are large. Enter your numbers above to see the exact difference.
Is income up to ₹12 lakh tax-free under the new regime?
Yes. The rebate in Section 156 (earlier 87A), up to ₹60,000, wipes out the tax on taxable income up to ₹12,00,000 for resident individuals. Salaried employees also get the ₹75,000 standard deduction, so salary up to ₹12.75 lakh pays no tax. The rebate does not cover tax on special-rate income such as capital gains.
What are the new tax regime slabs for FY 2026-27?
Up to ₹4 lakh: nil. ₹4–8 lakh: 5%. ₹8–12 lakh: 10%. ₹12–16 lakh: 15%. ₹16–20 lakh: 20%. ₹20–24 lakh: 25%. Above ₹24 lakh: 30%. A 4% health and education cess is added on the tax.
Which deductions can I claim in the new regime?
Only a few: the ₹75,000 standard deduction for salaried employees, your employer's NPS contribution under Section 124 (earlier 80CCD(2)), and a handful of others such as the family-pension deduction. Section 123 (earlier 80C), Section 126 (earlier 80D), HRA and interest on a self-occupied home loan are not allowed.
Can I switch between the old and new regime every year?
Salaried individuals without business income can choose either regime every year when filing their return. If you have business or professional income, you can switch back to the old regime only once.
How much tax do I pay on a ₹15 lakh salary in the new regime?
₹97,500 in FY 2026-27. After the ₹75,000 standard deduction, taxable income is ₹14,25,000. Slab tax is ₹93,750 (5% on ₹4–8 lakh, 10% on ₹8–12 lakh and 15% on the remaining ₹2.25 lakh), plus 4% cess. That is about ₹8,125 a month.
What is marginal relief just above ₹12 lakh?
If your taxable income is a little over ₹12 lakh in the new regime, the tax before cess can't exceed the amount by which your income crosses ₹12 lakh. On a ₹12.85 lakh salary, taxable income is ₹12,10,000, so the tax is limited to ₹10,000, or ₹10,400 with cess.
What is the standard deduction in the old and new regimes?
Salaried employees get ₹75,000 in the new regime and ₹50,000 in the old regime for FY 2026-27, under Section 19 (earlier 16(ia)). It is deducted automatically from salary income; you don't need any proof or investment to claim it.
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