Old vs New Tax Regime Calculator FY 2026-27

Old vs New Tax Regime Calculator for FY 2026-27

Use this free old vs new tax regime calculator to compare your estimated income-tax liability for FY 2026-27. Add salary, other regular income and eligible old-regime deductions to see the taxable income, total tax and possible savings under each regime.

Old vs New Tax Regime

Compare your tax liability under both regimes for FY 2026-27 and find out which one saves you more. Deductions apply only under the old regime.

Best Option

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New Regime — Taxable Income₹0
New Regime — Total Tax (incl. cess)₹0
Old Regime — Taxable Income₹0
Old Regime — Total Tax (incl. cess)₹0
You Save₹0

Standard deduction applied automatically: ₹75,000 (new) / ₹50,000 (old) on salary. New regime is the default under Section 115BAC. Surcharge above ₹50L not included. Estimates only.

Reviewed on July 13, 2026 using official Income Tax Department and Union Budget documents.

The calculator applies the relevant standard deduction automatically, subtracts the old-regime deductions entered by you, calculates slab-based tax and adds 4% Health and Education Cess. It then highlights the regime with the lower estimated liability.

Quick answer: The new regime often benefits taxpayers with limited deductions, while the old regime may be better when eligible HRA, Section 80C, medical-insurance, home-loan and NPS claims significantly reduce taxable income. The right answer depends on your actual figures—not only your salary.

How to compare the old and new tax regimes

  1. Enter your annual gross salary before standard deduction.
  2. Add regular income such as taxable interest or rent.
  3. Enter only the deductions and exemptions you can legally claim under the old regime.
  4. Review taxable income and total tax, including cess, under both regimes.
  5. Check the “You Save” amount and verify the result before selecting a regime in your return.

Old regime vs new regime at a glance

Comparison pointNew tax regimeOld tax regime
Default optionYes, for eligible taxpayersMust be selected where eligible
Standard deduction on salary₹75,000₹50,000
Basic nil-rate slabUp to ₹4 lakhGenerally up to ₹2.5 lakh for individuals below 60
Section 87A rebate used by toolUp to ₹60,000 when eligible taxable income does not exceed ₹12 lakhUp to ₹12,500 when eligible taxable income does not exceed ₹5 lakh
80C, 80D and 80CCD(1B)Most common personal deductions not availableAvailable subject to eligibility and limits
HRA exemptionGenerally not availableAvailable to eligible salaried taxpayers
Self-occupied home-loan interestNot included as a deduction by this toolUp to ₹2 lakh, subject to conditions
Health and Education Cess4%4%

What each calculator input means

Annual gross salary

Enter salary before the standard deduction. The calculator subtracts ₹75,000 for the new regime and ₹50,000 for the old regime whenever salary is greater than zero.

Other income

Use this field for regular taxable income such as bank interest or rent. Do not combine capital gains, lottery winnings, virtual digital asset income or other special-rate income with this simplified comparison.

Section 80C

Eligible old-regime investments and payments may qualify up to the combined statutory limit of ₹1.5 lakh. The tool caps this input at that amount.

Section 80D

Enter the eligible health-insurance and permitted medical expenditure deduction. The applicable limit depends on the persons covered and whether they are senior citizens, so verify your eligibility.

HRA exemption

Enter the HRA exemption calculated from eligible salary, HRA received, rent paid and the applicable metro or non-metro rule. Do not enter the full rent or full HRA without calculating the exemption.

Home-loan interest under Section 24(b)

The calculator caps this old-regime input at ₹2 lakh. Actual eligibility depends on the property type, loan purpose, completion conditions and applicable tax rules.

NPS under Section 80CCD(1B)

An additional eligible old-regime deduction of up to ₹50,000 can be entered. This is separate from the combined Section 80C/80CCC/80CCD(1) limit.

How the tax comparison is calculated

Taxable income = Salary + other regular income − standard deduction − eligible old-regime deductions

The tool calculates tax progressively using the applicable regime slabs, applies the simplified Section 87A rebate logic, and adds 4% cess. The displayed saving is the absolute difference between the two estimated totals.

New regime may be better whenYour deductions are low, you do not claim HRA or substantial home-loan interest, or you prefer simpler tax planning.
Old regime may be better whenYour eligible deductions and exemptions are large enough to offset its higher slab rates.

Example comparison

Consider a taxpayer with ₹12 lakh salary, ₹1.5 lakh under Section 80C and ₹25,000 under Section 80D. The new regime uses its ₹75,000 standard deduction, while the old regime uses its ₹50,000 standard deduction plus the entered eligible deductions. The calculator then compares both results after cess.

This example does not prove that one regime is always better. Adding eligible HRA, home-loan interest, NPS or other claims can change the comparison.

Important limitation: This calculator is designed for a simplified salary-and-regular-income comparison. It does not calculate surcharge above ₹50 lakh, age-specific old-regime slabs, every exemption, business-income option rules, special-rate income, loss set-off, relief or all return-filing adjustments.

Before choosing a tax regime

  • Use actual eligible deductions rather than maximum possible amounts.
  • Confirm that supporting documents are available.
  • Separate regular slab-rate income from special-rate income.
  • Consider employer-declared tax regime and TDS, but verify the final return position.
  • If you have business or professional income, review the applicable option and Form 10-IEA rules.
  • Recalculate whenever income, rent, investments or tax rules change.

Related tax calculators

Income Tax Calculator Section 87A Rebate Calculator HRA Calculator Budget 2026 Tax Calculator TDS on Salary Calculator Home Loan EMI Calculator Advance Tax Calculator Salary Take-Home Calculator

Frequently asked questions

Which is better for FY 2026-27: old or new tax regime?
There is no universal answer. The new regime may be better with limited deductions, while the old regime may be better when eligible exemptions and deductions materially reduce taxable income. Enter your actual figures to compare.
Is the new tax regime the default option?
Yes, the new regime is the default for eligible taxpayers. A taxpayer can choose the old regime where permitted, subject to the rules applicable to their type of income.
Can a salaried person with ₹12.75 lakh gross salary pay zero tax?
An eligible resident individual may have taxable income of ₹12 lakh after the ₹75,000 new-regime standard deduction and may receive the Section 87A rebate. Special-rate income and other circumstances can change the result.
How much deduction is allowed under Section 80C?
The combined old-regime limit for eligible claims under Sections 80C, 80CCC and 80CCD(1) is generally ₹1.5 lakh. The calculator caps its Section 80C input at this amount.
Is NPS deduction available in the new regime?
The personal additional deduction under Section 80CCD(1B) is generally associated with the old regime. Certain employer NPS contributions under Section 80CCD(2) may receive different treatment, but this calculator does not include that separate input.
Can I claim HRA and home-loan interest together?
They may both be available under the old regime when their respective legal conditions are satisfied. Eligibility depends on facts such as residence, property use, rent payments and loan conditions.
Does the calculator include senior-citizen slabs?
No. The old-regime calculation uses the general slabs for an individual below 60. Senior and super-senior citizens may have different old-regime exemption limits.
Does the comparison include capital gains?
No. Capital gains and other special-rate income require separate calculations and can affect rebate eligibility. Use the dedicated Capital Gains Tax Calculator.
Can I use this comparison for filing my tax return?
Use it as a planning estimate only. Verify your final liability, deductions, option rules and return details through the official portal or a qualified tax professional.

Official sources

Disclaimer: Results are estimates for educational and planning purposes and do not constitute tax, legal, accounting or financial advice. Verify current rules and consult a qualified professional before filing or choosing a tax regime.