Old vs New Tax Regime Calculator
Compare both tax regimes instantly and find which saves you more tax for FY 2026-27 (Income Tax Act 2025)
About Old vs New Tax Regime Comparison
Choosing between the Old and New income tax regimes can save you significant tax. This calculator helps you make an informed decision by comparing your tax liability under both regimes based on your income and deductions.
Income Tax Slabs FY 2026-27
New Regime Tax Slabs
| Income Range | Tax Rate |
|---|---|
| Up to ₹4,00,000 | 0% |
| ₹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% |
💡 Rebate u/s 87A: Zero tax up to ₹12L taxable income (₹12.75L gross with ₹75K standard deduction)
Old Regime Tax Slabs (Below 60 years)
| Income Range | Tax Rate |
|---|---|
| Up to ₹2,50,000 | 0% |
| ₹2,50,001 - ₹5,00,000 | 5% |
| ₹5,00,001 - ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
👴 Seniors (60-80): ₹3L exemption | Super Seniors (80+): ₹5L exemption
Health & Education Cess and Surcharge
Health & Education Cess
Applied on total tax + surcharge. Funds healthcare and education for economically weaker sections.
Income Tax Surcharge Rates
| Total Income | Surcharge |
|---|---|
| Up to ₹50 Lakhs | 0% |
| ₹50L - ₹1 Crore | 10% |
| ₹1Cr - ₹2 Crore | 15% |
| ₹2Cr - ₹5 Crore | 25% |
| Above ₹5 Crore | 37% |
⚠️ New Regime: Max surcharge capped at 25% (no 37% slab)
Key Differences Between Old and New Regime
| Feature | Old Regime | New Regime (FY 26-27) |
|---|---|---|
| Standard Deduction | ₹50,000 | ₹75,000 |
| Section 80C | Up to ₹1.5 Lakh | Not Available |
| Section 80D (Health) | Up to ₹1 Lakh | Not Available |
| HRA Exemption | Available | Not Available |
| Home Loan Interest | Up to ₹2 Lakh | Not Available |
| Tax-Free Limit (with Rebate) | ₹5 Lakh | ₹12 Lakh |
When is Old Regime Better?
Old Regime is typically better when you have significant deductions:
When is New Regime Better?
New Regime is typically better when:
Frequently Asked Questions
Can I switch between Old and New Regime every year?
Yes, salaried individuals can switch between regimes each financial year. However, if you have business income, you can only switch once in your lifetime.
Is New Regime the default option?
Yes, from FY 2023-24 onwards, New Regime is the default. If you want Old Regime, you need to specifically opt for it by filing Form 10-IEA before the due date.
What deductions are available in New Regime?
Very limited deductions are available: Standard deduction (₹75,000), Employer's NPS contribution under 80CCD(2), and Agniveer Corpus Fund under 80CCH. Most popular deductions like 80C, 80D, HRA are not available.