New Regime vs Old Regime Calculator

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.