New Regime vs Old Regime Calculator
Compare income tax under new vs old tax regime for FY 2026-27 using the figures built into the tool. Find which regime saves you more tax after deductions like 80C, HRA, NPS.
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How to use this calculator
- 1
Enter gross annual income and the deductions you would claim under the old regime. The new regime in this tool ignores all of them.
- 2
Old regime: ₹50,000 standard deduction plus HRA, 80C (capped ₹1,50,000), 80D (capped ₹50,000), NPS 80CCD(1B) (capped ₹50,000), home loan interest (capped ₹2,00,000) and other deductions.
- 3
New regime (FY 2026-27 label): only a ₹75,000 standard deduction is subtracted, then the ₹4,00,000-step slabs are applied.
- 4
Compare the two tax lines. The tool adds surcharge above ₹50,00,000 of taxable income with marginal relief, and 4% cess on both.
Frequently asked questions
Which year’s slabs does this tool carry?
It is labelled FY 2026-27. Reports on Union Budget 2026 (February 2026) say it left the slabs, the standard deduction and the rebate as they were for FY 2025-26, so the tool uses the same table. The new regime is nil to ₹4,00,000, then 5% to ₹8,00,000, 10% to ₹12,00,000, 15% to ₹16,00,000, 20% to ₹20,00,000, 25% to ₹24,00,000 and 30% above. The old regime is nil to ₹2,50,000, 5% to ₹5,00,000, 20% to ₹10,00,000 and 30% above. These are the figures built into this tool and match the Form 16 tool on this site.
Which deductions does each regime use in the tool?
Old regime: ₹50,000 standard deduction, HRA exemption as typed, 80C up to ₹1,50,000, 80D up to ₹50,000, NPS 80CCD(1B) up to ₹50,000, home loan interest up to ₹2,00,000 and other deductions as typed. New regime: ₹75,000 standard deduction and nothing else. These caps and amounts are the figures built into this tool.
How does the rebate work in the tool?
Old regime tax is zero when taxable income is ₹5,00,000 or less (a rebate of up to ₹12,500), with the full slab tax applying one rupee above. New regime tax is zero when taxable income is ₹12,00,000 or less (a rebate of up to ₹60,000). Just above that the tool limits tax to the amount by which taxable income exceeds ₹12,00,000, before cess. On a gross of ₹12,80,000 with no deductions the new-regime taxable income is ₹12,05,000 and the tax is ₹5,200 with cess.
How is surcharge handled?
Surcharge is applied to the tax on taxable income: 10% above ₹50,00,000, 15% above ₹1,00,00,000, 25% above ₹2,00,00,000 and, in the old regime only, 37% above ₹5,00,00,000. The new regime stops at 25%. The tool limits tax plus surcharge so it never exceeds the tax and surcharge at the threshold plus the income above it, then adds 4% cess. Special-rate income such as capital gains is not separated, so very high or mixed incomes are only approximated.
What does “Better regime” mean?
It labels the regime with the smaller total tax in the tool, with “Equal” if the two totals match, and shows the difference. The comparison is only as good as the deductions you type: leaving old-regime deductions at zero while having them in reality will make the new regime look better.
Is there a break-even point I can read off?
It depends on income and which deductions you have, so the tool does not give a single number. In the table on this page, with 80C of ₹1,50,000, 80D of ₹25,000 and NPS of ₹50,000 and no HRA, the new regime is lower at every income shown from ₹8,00,000. A larger package with HRA and home loan interest, described on this page, makes the old regime lower instead.
What does the tool leave out?
Employer NPS contributions, senior-citizen slabs, income other than salary, capital gains at special rates, the option to switch regimes, rules for business income and relief under other sections. Tax rules and limits change in most Union Budgets, and the tool is not updated automatically, so the Income Tax Department or a chartered accountant governs.
Old regime against new regime: tax arithmetic side by side (FY 2026-27 label)
What the tool compares
The tool computes tax twice from the same gross income. For the old regime it subtracts a standard deduction, HRA, 80C, 80D, NPS 80CCD(1B), home loan interest and other deductions, caps the ones with limits, applies the old slabs and the 87A rebate, adds surcharge above ₹50,00,000 and then 4% cess. For the new regime it subtracts only a ₹75,000 standard deduction before using the new slabs. The lower total is labelled the better regime. Indian tax rules and limits change in most Union Budgets, and the tables built into this tool, labelled FY 2026-27, are not updated automatically, so the Income Tax Department or a qualified chartered accountant governs.
Where the lines cross, with a fixed deduction set
The table keeps the deductions the same at 80C ₹1,50,000, 80D ₹25,000 and NPS ₹50,000, with no HRA or home loan, and changes only gross income. At ₹8,00,000 the new regime taxable income of ₹7,25,000 is inside the ₹12,00,000 rebate limit and pays nothing, while the old regime’s ₹5,25,000 attracts ₹18,200. At ₹10,00,000 the new regime still pays nothing against ₹59,800. At higher incomes the gap widens to ₹89,700 at ₹15,00,000 and ₹1,79,400 at ₹30,00,000.
| Gross income | Old regime tax | New regime tax | Lower in the tool |
|---|---|---|---|
| ₹8,00,000 | ₹18,200 | ₹0 | New regime, by ₹18,200 |
| ₹10,00,000 | ₹59,800 | ₹0 | New regime, by ₹59,800 |
| ₹15,00,000 | ₹1,87,200 | ₹97,500 | New regime, by ₹89,700 |
| ₹20,00,000 | ₹3,43,200 | ₹1,92,400 | New regime, by ₹1,50,800 |
| ₹30,00,000 | ₹6,55,200 | ₹4,75,800 | New regime, by ₹1,79,400 |
When deductions change the picture
The default inputs add ₹1,20,000 of HRA to the same package on a gross of ₹10,00,000 and the old-regime taxable income falls to ₹6,05,000, with tax of ₹34,840 against ₹0 under the new regime, so the new regime is still lower by ₹34,840. A larger package of ₹15,00,000 gross with ₹2,40,000 HRA, 80C ₹1,50,000, 80D ₹25,000, NPS ₹50,000 and home loan interest ₹2,00,000 leaves old taxable income at ₹7,85,000 and tax at ₹72,280 against ₹97,500, so the old regime is lower by ₹25,220. With no deductions at all the picture is the reverse: at ₹15,00,000 the old regime is ₹2,57,400 against ₹97,500.
Rebate edges and surcharge
Old-regime tax drops to zero at ₹5,00,000 of taxable income, and the full slab tax applies one rupee above. The new regime reaches zero at ₹12,00,000 and the tool applies marginal relief above it. With no deductions, a gross of ₹12,75,000 gives ₹12,00,000 taxable and zero tax, ₹12,80,000 gives ₹5,200, ₹13,25,000 (₹12,50,000 taxable) gives ₹52,000 and ₹13,75,000 (₹13,00,000 taxable) gives ₹78,000, where the full slab tax applies. Surcharge starts above ₹50,00,000 of taxable income, with marginal relief. A gross of ₹60,00,000 with no deductions beyond the standard deduction shows ₹18,27,540 under the old regime and ₹15,52,980 under the new one. Surcharge on capital gains and dividend income is capped differently under the rules and is not modelled.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →