Compare your income tax liability under the Old and New Tax Regimes side by side for FY2026-27.
Based on FY2026-27 rules · Last updated
India's two tax regimes produce different tax bills for the same income, and which one wins depends entirely on how many deductions you can claim. The New Regime offers lower slab rates but almost no deductions; the Old Regime allows HRA, 80C, home loan interest, and more, at higher rates.
Enter your annual gross income and, if you want to compare the Old Regime properly, your expected deductions — this calculator computes both side by side so you can see exactly which one comes out ahead for your numbers.
Old Regime Deductions (optional)
New Regime Saves You
₹1,13,100 this year
Tax payable — Old Regime: ₹2,10,600 · New Regime: ₹97,500
Effective Tax Rate
6.5%
Monthly TDS
₹8,125
The New Regime applies lower slab rates but almost no deductions. The Old Regime allows 80C, home loan interest, NPS, and HRA exemptions, at higher slab rates. Both are computed on your gross income after standard deduction, with a mandatory 4% Health & Education Cess added on top of the slab tax.
Note: This calculator uses standard FY2026-27 slab rates and the Section 87A rebate thresholds. It doesn't account for every possible deduction (e.g. medical insurance under 80D, LTA) — for a full picture, consult your Form 12BB declaration or a tax professional.
Example: on a gross salary of ₹15,00,000 under the new regime, the ₹75,000 standard deduction gives taxable income of ₹14,25,000. Slab tax is ₹93,750 and 4% cess adds ₹3,750, so total tax is ₹97,500. Under the old regime, the same salary with ₹1.5 lakh of Section 80C deductions has taxable income of ₹13,00,000 and total tax of ₹2,10,600.
| Taxable income | Tax 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% |
For most salaried employees without large deductions, the New Regime's lower rates result in less tax — especially since a Section 87A rebate makes tax zero on taxable income up to ₹12 lakh. The Old Regime tends to win only for employees with significant deductions: a large home loan, high HRA-eligible rent, and maxed-out 80C investments combined.
Salaried employees without business or professional income can choose their regime afresh each year simply by declaring it on their ITR — no separate form is required. Employees with business or professional income must file Form 10-IEA, and that choice is a once-in-a-lifetime switch rather than an annual one.
The new regime slabs are: nil up to ₹4 lakh, 5% from ₹4–8 lakh, 10% from ₹8–12 lakh, 15% from ₹12–16 lakh, 20% from ₹16–20 lakh, 25% from ₹20–24 lakh and 30% above ₹24 lakh. A rebate makes tax nil on taxable income up to ₹12 lakh, and a 4% Health and Education Cess applies to any tax payable. The calculator applies all of this automatically.
Salaried employees get a flat standard deduction without submitting any proof: ₹75,000 under the new regime and ₹50,000 under the old regime. It is subtracted from your salary income before the slabs are applied, and this calculator includes it for you.
Run your numbers under both regimes and compare the total tax. The new regime usually wins when your deductions are modest, because its slabs are lower and the rebate covers income up to ₹12 lakh. The old regime can win when you claim large deductions together — HRA, Section 80C, home loan interest and NPS. Enter the same inputs here and the calculator shows both results side by side.
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