Old vs New Tax Regime Calculator — Tax Year 2026-27
Updated: 3 June 2026 | Income-tax Act, 2025 | Break-even Analysis
For ₹10L income. Break-even rises with higher income. Calculator below shows your exact figure.
New vs Old Tax Regime
Which Saves You More?
Enter your income and deductions — get instant side-by-side comparison of exact tax in both regimes. Know which is better for FY 2025-26 (AY 2026-27).
New Regime allows only standard deduction. Enter deductions you claim under Old Regime:
New Tax Regime vs Old Tax Regime — Complete Guide 2025-26
The Union Budget 2025 introduced a significantly revamped New Tax Regime making it the default tax regime from FY 2025-26. With zero tax on income up to ₹12 lakh (via 87A rebate) plus ₹75,000 standard deduction for salaried employees, the New Regime is now beneficial for most taxpayers. However, those with high deductions may still prefer the Old Regime.
New Tax Regime Slabs — FY 2025-26 (AY 2026-27)
| Income Slab | Tax Rate (New) | Tax Amount 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 |
Key benefit: Section 87A rebate of ₹60,000 — if your total income does not exceed ₹12,00,000, your entire tax liability is waived. Salaried persons with income up to ₹12,75,000 (₹12L + ₹75K standard deduction) pay ZERO tax.
Old Tax Regime Slabs — FY 2025-26
| Income Slab | Tax Rate (Old) | Senior Citizen (60–80 yrs) | Super Senior (80+ yrs) |
|---|---|---|---|
| Up to ₹2,50,000 | NIL | NIL (up to ₹3L) | NIL (up to ₹5L) |
| ₹2,50,001 – ₹5,00,000 | 5% | 5% | NIL |
| ₹5,00,001 – ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
87A Rebate (Old Regime): ₹12,500 for total income up to ₹5,00,000. Standard deduction: ₹50,000.
Who Should Choose New Tax Regime?
- Income up to ₹12.75 lakh (salaried) — Zero tax guaranteed
- Taxpayers with limited deductions (less than ₹3.75 lakh total)
- First-time employees / young professionals
- Those who prefer simpler tax filing without tracking deductions
- Freelancers / business owners with minimal business expenses
- NRIs — only New Regime available from AY 2024-25 onwards
Who Should Choose Old Tax Regime?
- Home loan borrowers claiming Section 24B (up to ₹2L interest deduction)
- HRA claimants living in rented accommodation
- Those with high 80C investments (₹1.5L) + NPS (₹50K) + 80D (₹25K+)
- Income above ₹30L with substantial deductions
- Business owners with large allowable expenses
- Parents paying tuition fees eligible under 80C
Deductions Available in New Regime
The New Regime restricts most deductions, but the following are still allowed:
- Standard deduction: ₹75,000 (salaried/pensioners)
- Employer's NPS contribution (Section 80CCD(2)) — up to 14% of salary
- Agniveer Corpus Fund deduction (80CCH)
- Gratuity exemption (Section 10(10))
- Leave encashment on retirement (Section 10(10AA))
- Voluntary Retirement (Section 10(10C))
- Family pension deduction (₹25,000 or 1/3rd, whichever is lower)
- Interest on housing loan for let-out property
Can You Switch Between Regimes Every Year?
Salaried / No Business Income: Yes, you can switch every year at the time of filing ITR. You must inform your employer about your regime choice at the start of the year (Form 12B).
Business Income / Presumptive Taxation: You can switch from Old to New only once. Once you opt out of New Regime with business income, you cannot re-enter except in limited circumstances.
Frequently Asked Questions
◆ Free Tax Consultation
Not sure which regime suits you?
Our CA experts will analyze your complete income profile and pick the regime that saves you maximum tax — for free.
Get Free Tax Advice →Frequently Asked Questions
Related Tools & Pages
Old Vs New Regime Calculator Near You
Expert CA/CS assistance for old vs new regime calculator across India. Click your city for local details.