Old vs New Tax Regime Calculator
New vs Old Tax Regime
Enter your income and deductions — see which regime wins live, with exact tax under each and a slab-wise breakdown.
Applicable for FY 2026-27 (AY 2027-28) and FY 2027-28.
Old vs New — detailed breakdown
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Disclaimer: Indicative estimate for individual residents. Actual tax may vary with exemptions, capital gains and special-rate income. Rates for FY 2026-27 (AY 2027-28), carried forward to FY 2027-28.
Budget 2025 — what changed in the new regime
The new tax regime is now the default. For FY 2026-27, the rebate under Section 87A makes a resident individual pay zero tax up to ₹12 lakh of taxable income — and with the ₹75,000 standard deduction, salaried people are effectively tax-free up to ₹12.75 lakh.
When does the old regime still win?
The old regime charges higher slab rates but lets you claim 80C, 80D, HRA and home-loan interest. It beats the new regime only once your deductions are large enough to offset the rate gap. Here is roughly how much you need to claim before the old regime becomes cheaper (over and above the standard deduction).
Low income (up to ₹12.75L)
The new regime is almost always better — zero tax up to ₹12.75L via the 87A rebate. The old regime can only match this with very heavy deductions, which most people at this level do not have.
Break-even deductions
Around ₹3.75L–₹4.25L of total deductions (beyond the standard deduction) is where the old regime overtakes the new one for incomes of ₹15L–₹24L. Below that, stay on new.
Home-loan + HRA households
₹2L home-loan interest + ₹1.5L (80C) + HRA + 80D easily crosses ₹4L. For salaried people renting and repaying a home loan, the old regime frequently wins — enter your numbers above.
Very high income
The new regime caps surcharge at 25% versus 37% in the old regime, so for income above ₹2Cr the new regime has a structural advantage unless deductions are exceptional.
Income tax slabs — FY 2026-27
The new regime has lower rates but almost no deductions; the old regime has higher rates but lets you claim 80C, 80D, HRA and home-loan interest. A 4% health & education cess applies on top of tax in both regimes.
| 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% |
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Old vs new — worked examples
What a salaried person pays under each regime. The first two take only the standard deduction; the third shows how ₹4.25L of old-regime deductions can flip the result. Enter your own numbers above to compare exactly.
Frequently asked questions
This calculator computes your exact income tax under both the old and new regime for FY 2025-26 (AY 2026-27) from a single set of inputs — income, employment type and your old-regime deductions (80C, HRA, home-loan interest, 80D, NPS and others). It applies the correct slabs, the 87A rebate, surcharge and 4% cess, then shows the difference and the recommended regime. The new regime gives zero tax up to ₹12.75L salary and usually wins when total deductions stay below about ₹3.75L.
How the Calculator Compares Both Regimes
The new regime allows only the standard deduction of ₹75,000 (salaried) plus employer NPS, while the old regime lets you subtract 80C, HRA, home-loan interest and 80D. That single difference decides which regime is cheaper for you.
New Regime Tax Slabs (Default)
| Income slab | New-regime rate | Tax on slab |
|---|---|---|
| Up to ₹4,00,000 | Nil | ₹0 |
| ₹4,00,001 – ₹8,00,000 | 5% | ₹20,000 |
| ₹8,00,001 – ₹12,00,000 | 10% | ₹40,000 |
| ₹12,00,001 – ₹16,00,000 | 15% | ₹60,000 |
| ₹16,00,001 – ₹20,00,000 | 20% | ₹80,000 |
| ₹20,00,001 – ₹24,00,000 | 25% | ₹1,00,000 |
| Above ₹24,00,000 | 30% | As applicable |
87A rebate up to ₹60,000 makes tax nil for total income up to ₹12,00,000; with the ₹75,000 standard deduction, salary up to ₹12,75,000 pays zero tax. Then 4% Health & Education Cess applies.
Old Regime Tax Slabs
| Income slab | Old-regime rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Old regime keeps 87A rebate (₹12,500 up to ₹5L income) and a ₹50,000 standard deduction, plus all deductions such as 80C, HRA, 24B and 80D.
₹12 Lakh Salary — Both Regimes
New regime
Old regime (₹2.5L deductions)
For most incomes the old regime only becomes cheaper once your total deductions (beyond the standard deduction) cross roughly ₹3.75 lakh — typically a full ₹1.5L 80C, ₹2L home-loan interest and health insurance together. Below that, the new regime with zero tax up to ₹12.75L salary usually wins. Enter your real figures above to see your exact break-even.
Not sure which regime fits your income profile? Get a CA to check it for you.
Talk to a Tax Expert →Old vs New Regime — FAQs
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