Compare your income tax under the old and new regimes for FY 2026-27 and see which saves more.
Lower tax under
You save
Tax under new regime
Tax under old regime
Old vs new regime, step by step
Item
Old regime
New regime
Gross income
₹15,00,000
₹15,00,000
Standard deduction
₹50,000
₹75,000
Other deductions and exemptions
₹1,75,000
₹0
Taxable income
₹12,75,000
₹14,25,000
Tax as per slabs
₹1,95,000
₹93,750
Rebate
₹0
₹0
Surcharge
₹0
₹0
Health and education cess (4%)
₹7,800
₹3,750
Total tax
₹2,02,800
₹97,500
Every salaried person and taxpayer in India can choose between two income tax regimes each year. The new regime, the default, has lower slab rates but allows very few deductions. The old regime has higher rates but lets you claim deductions such as Section 80C, health insurance, HRA and home loan interest. This calculator works out your tax under both so you can see which one costs less.
New regime highlights for FY 2026-27
No tax on taxable income up to ₹12 lakh, thanks to the rebate. With the ₹75,000 standard deduction, salaried people pay no tax on income up to ₹12.75 lakh.
Just above ₹12 lakh, marginal relief ensures your tax never exceeds the income above ₹12 lakh.
Budget 2026 kept the slabs, standard deduction and rebate the same as FY 2025-26. FY 2026-27 is also the first year under the Income-tax Act, 2025.
Examples for salaried employees (FY 2026-27)
₹10 lakh salary: nil tax under the new regime, against about ₹1,06,600 under the old regime with no deductions.
₹15 lakh salary with ₹1.5 lakh in 80C and ₹25,000 health insurance: about ₹97,500 under the new regime and ₹2,02,800 under the old. The new regime saves over ₹1 lakh.
₹15 lakh salary that also claims ₹2 lakh HRA exemption and ₹2 lakh home loan interest: the old regime becomes cheaper, about ₹91,000 against ₹97,500.
As a rough guide, the old regime only wins when your deductions are large, usually when you pay rent in a big city and also have a home loan.
How to fill in the calculator
Total annual income: your gross salary (including allowances and bonus) plus interest, rent and other income.
Old regime boxes: enter only what you can actually claim. Use the HRA calculator to work out your exempt HRA.
Switch “Income from salary or pension?” to “No” if you are self-employed, because the standard deduction then does not apply.
How this is calculated
New regime slabs for FY 2026-27 (AY 2027-28):
₹0 – ₹400,000: 0%
₹400,000 – ₹800,000: 5%
₹800,000 – ₹1,200,000: 10%
₹1,200,000 – ₹1,600,000: 15%
₹1,600,000 – ₹2,000,000: 20%
₹2,000,000 – ₹2,400,000: 25%
Above ₹2,400,000: 30%
Tax is worked out slab by slab on taxable income (income minus allowed deductions). A rebate makes tax nil up to ₹12 lakh of taxable income in the new regime (₹5 lakh in the old), with marginal relief just above ₹12 lakh. Surcharge applies above ₹50 lakh (capped at 25% in the new regime), and 4% health and education cess is added on top.
Assumptions
For resident individuals. Income taxed at special rates (capital gains, lottery) and their lower surcharge caps are not handled here.
Tax is shown unrounded; the Income Tax Department rounds taxable income and tax to the nearest ₹10.
Employer NPS contribution (allowed in both regimes) and family pension deduction are not included.
Budget 2026 kept slabs, standard deduction and rebate unchanged from FY 2025-26. Law: Income-tax Act, 2025 (rebate provision renumbered from Section 87A).
Enter your numbers above. For most people without large deductions, the new regime costs less. If your deductions (80C, 80D, HRA, home loan interest and others) are large, the old regime can win.
Can I switch between the old and new regimes?
Salaried individuals without business income can choose a regime every year when filing their return. People with business or professional income have limited chances to switch, so check the rules before opting out.
Is the standard deduction available in the new regime?
Yes. Salaried employees and pensioners get ₹75,000 under the new regime and ₹50,000 under the old regime.
Does this calculator include capital gains?
No. Capital gains on shares, mutual funds and property are taxed at special rates and are not included. Enter only income taxed at normal slab rates.
Results are estimates for information only, based on the inputs and assumptions shown. They are not financial, tax or legal advice. Banks, fund houses and the tax department may calculate actual amounts differently.
