Old vs New Tax Regime Calculator FY 2026-27
Compare both Indian income-tax regimes with actual deductions, age-based slabs, rebate, marginal relief, surcharge, cess and a clear break-even estimate.
Last Updated: July 22, 2026Use this old vs new tax regime calculator for Tax Year 2026-27 to compare your complete estimated liability under both options. Enter salary, ordinary income, special-rate tax and deductions once. The tool shows the lower-tax regime, annual saving, monthly difference and extra old-regime deductions needed to break even.
Compare Old and New Tax Regimes
Enter annual figures. The default ₹12.75 lakh salary example becomes ₹12 lakh after the new-regime standard deduction and qualifies for the rebate when all conditions are met.
Annual tax comparison
Enter your annual figures to compare both regimes.
Detailed tax computation
| Component | New regime | Old regime |
|---|
Old-regime deduction sensitivity
| Total old-specific deductions | Old-regime taxable income | Old-regime tax | Compared with new regime |
|---|
Special-rate income needs a separate rate calculation. Enter its pre-surcharge tax only when you know the applicable treatment.
How to Use the Old vs New Tax Regime Calculator
- Select your residential status and age group. These inputs control rebate eligibility and old-regime basic exemption.
- Choose whether your income includes eligible salary or pension, then enter annual income before standard deduction.
- Separate ordinary slab-rate income from capital gains, lottery winnings or other special-rate income.
- Enter employer NPS and only the old-regime exemptions or deductions you can legally claim.
- Select Compare Tax Regimes. Review total tax, annual saving, monthly difference, break-even deduction and computation table.
- Replace every default amount with your actual records before making a tax-regime choice.
Use annual values from your salary structure, Form 16, rent documents, home-loan certificate, insurance receipts, investment proofs, AIS and TIS. Do not enter the same claim in two fields.
Old Tax Regime vs New Tax Regime at a Glance
| Comparison point | New tax regime | Old tax regime |
|---|---|---|
| Default regime | Yes, for eligible taxpayers | Opt out of the default where permitted |
| Salary or pension standard deduction | ₹75,000 | ₹50,000 |
| Basic nil-rate slab | ₹4,00,000 for all ages | ₹2,50,000, ₹3,00,000 or ₹5,00,000 based on qualifying age and residence |
| Section 87A rebate | Up to ₹60,000 when eligible total income does not exceed ₹12 lakh | Up to ₹12,500 when eligible total income does not exceed ₹5 lakh |
| HRA, 80C, 80D and 80CCD(1B) | Common personal claims generally unavailable | Available when conditions and limits are met |
| Employer NPS under 80CCD(2) | Available within the applicable limit | Available within the applicable limit |
| Self-occupied home-loan interest | Not deducted in this comparison | Up to ₹2 lakh when conditions are met |
| Health and Education Cess | 4% | 4% |
The new regime has wider, lower-rate slabs and fewer common deductions. The old regime retains many exemptions and deductions but uses older slab rates. A comparison should use the tax after deductions, rebate, surcharge and cess. Comparing only gross income or the top slab rate gives an incomplete answer.
FY 2026-27 Tax Slabs Used by the Calculator
New regime
- Up to ₹4 lakh: Nil
- ₹4 lakh to ₹8 lakh: 5%
- ₹8 lakh to ₹12 lakh: 10%
- ₹12 lakh to ₹16 lakh: 15%
- ₹16 lakh to ₹20 lakh: 20%
- ₹20 lakh to ₹24 lakh: 25%
- Above ₹24 lakh: 30%
Old regime, below age 60
- Up to ₹2.5 lakh: Nil
- ₹2.5 lakh to ₹5 lakh: 5%
- ₹5 lakh to ₹10 lakh: 20%
- Above ₹10 lakh: 30%
For eligible resident senior citizens, the nil slab rises to ₹3 lakh. For eligible resident super-senior citizens, it rises to ₹5 lakh. NRIs use the general old-regime slabs regardless of age.
Each rate applies only to the income within its band. For example, a 20% slab does not mean the full taxable income is taxed at 20%.
Formula and Tax Comparison Method
For the new regime, the calculator subtracts the ₹75,000 standard deduction from eligible salary or pension and the entered eligible employer-NPS contribution. For the old regime, it subtracts the ₹50,000 standard deduction, employer NPS, HRA or LTA, professional tax, capped 80C, entered 80D, additional NPS, capped self-occupied home-loan interest and other deductions.
Taxable income cannot fall below zero. Slab tax is calculated progressively. The calculator then applies Section 87A rebate for an eligible resident individual, new-regime marginal relief just above ₹12 lakh, surcharge at the applicable high-income threshold and 4% cess. Final tax is rounded to the nearest ₹10.
The break-even result uses repeated calculations to estimate the extra old-regime deduction needed to make old-regime tax no higher than new-regime tax. It is a mathematical target. It does not create eligibility for any exemption or deduction.
Worked Example: ₹12.75 Lakh Salary
Take a resident salaried individual below age 60 with gross salary of ₹12,75,000, Section 80C of ₹1,50,000 and Section 80D of ₹25,000.
New-regime result
- Gross salary: ₹12,75,000
- Standard deduction: ₹75,000
- Taxable income: ₹12,00,000
- Slab tax before rebate: ₹60,000
- Section 87A rebate: ₹60,000
- Total tax: ₹0
Old-regime result
- Gross salary: ₹12,75,000
- Standard deduction: ₹50,000
- Section 80C and 80D: ₹1,75,000
- Taxable income: ₹10,50,000
- Tax before cess: ₹1,27,500
- Total tax after 4% cess: ₹1,32,600
The new regime saves ₹1,32,600 annually in this example, equal to ₹11,050 per month. The old regime would need about ₹5,50,000 of additional valid deductions or exemptions to reach zero tax and match the new result. That amount is a comparison signal, not a recommendation to spend or invest ₹5,50,000.
Section 87A Rebate and Marginal Relief
Under the new regime, an eligible resident individual can receive a rebate of up to ₹60,000 when total income does not exceed ₹12 lakh. This is why eligible salary of ₹12.75 lakh can produce zero tax after the ₹75,000 standard deduction. The statement is not a universal ₹12.75 lakh exemption. Special-rate income, deductions and residence can change the result.
When eligible ordinary taxable income moves slightly above ₹12 lakh, marginal relief limits slab tax before cess to the income exceeding ₹12 lakh. At ₹12,10,000, normal slab tax is ₹61,500. Relief reduces it to ₹10,000 before cess. Based on the official illustration, the relief range ends around ₹12,70,588.
Under the old regime, an eligible resident individual can receive a rebate of up to ₹12,500 when total income does not exceed ₹5 lakh. NRIs do not receive Section 87A rebate. The calculator keeps entered special-rate tax outside the new-regime rebate and treats mixed special-income cases as estimates.
Which Deductions Can Change the Result?
Valid exemptions and deductions can make the old regime more competitive:
- HRA exemption: Enter the calculated exemption, not full rent or HRA received.
- Section 80C: Eligible Section 80C, 80CCC and 80CCD(1) claims share a ₹1.5 lakh limit.
- Section 80D: Limits depend on who is covered and their ages.
- Section 80CCD(1B): Eligible personal NPS contributions can add up to ₹50,000.
- Section 24(b): Qualifying self-occupied home-loan interest can reach ₹2 lakh.
- Employer NPS: Eligible Section 80CCD(2) contributions can apply in both regimes within the salary-based limit.
Enter a claim only when you meet its conditions and retain evidence.
When the New or Old Regime May Be Better
New regime may produce lower tax when
- Your HRA and other old-regime exemptions are small.
- You do not use substantial 80C, 80D, NPS or home-loan deductions.
- The ₹12 lakh rebate or marginal relief applies.
- You value simpler payroll declarations and fewer deduction proofs.
Old regime may produce lower tax when
- You have a large, valid HRA exemption.
- Your eligible deductions materially reduce taxable income.
- Age-based old-regime slabs help as a resident senior citizen.
- Your combined housing, insurance, retirement and other claims cross the calculated break-even point.
Tax saving is only one part of a financial decision. Do not buy a product only to claim a deduction. Check cost, lock-in, liquidity, insurance need, risk and expected return.
Regime Selection and Business-Income Rules
The new regime is the default. A taxpayer without business income can generally choose a permitted regime each year in the return. Business or professional income brings Form 10-IEA, deadline and switching restrictions. This tool compares tax but does not validate your election.
FY 2026-27 is called Tax Year 2026-27 under the Income-tax Act, 2025. The interface also shows familiar legacy labels such as 80C and 80CCD to help you map existing records during the transition.
Your payroll choice affects TDS. Your final position follows the valid regime selected in the return. Compare again when income or deductions change.
Surcharge, Cess and Special-Rate Income
Surcharge starts when total income exceeds ₹50 lakh. Standard rates rise at ₹1 crore and ₹2 crore. The new regime has a 25% maximum standard surcharge. The old regime can reach 37% above ₹5 crore. Marginal relief limits the sharp tax increase immediately above each threshold.
Certain capital gains and dividend income use a 15% surcharge cap. This tool applies that cap to the entered special-rate tax and estimates exact surcharge allocation. Complex high-income cases need a detailed computation.
Health and Education Cess is 4% of income tax plus surcharge. It applies under both regimes. Capital gains, lottery winnings, virtual digital assets and other special-rate items should not be entered as ordinary income. First calculate their tax using the applicable rules, then enter both the special income and its pre-surcharge tax.
Important Calculator Limitations
This tool gives a detailed comparison for common individual situations. It does not replace a full return computation. Get a section-by-section review when you have:
- Multiple capital-gain categories, loss set-off or indexation choices
- Foreign income, treaty relief, foreign tax credit or residential-status complexity
- More than one property, brought-forward house-property loss or deemed rent
- Business losses, depreciation, presumptive taxation, AMT or audit requirements
- Agricultural-income integration, clubbing provisions or unexplained income
- ESOPs, arrears relief, gratuity, leave encashment or pension commutation
- Donation limits, disability deductions or deductions linked to adjusted gross total income
- High income with special-rate gains requiring exact surcharge allocation
The tool does not test the employer-NPS percentage limit or every 80D and other-deduction condition. It assumes rental income is already calculated correctly. It also does not subtract TDS because TDS changes the balance payable, not the regime's final tax liability.
Related Tax and Salary Calculators
Use these tools to calculate individual components before making the final comparison.
Frequently Asked Questions
Which tax regime is better for FY 2026-27?
The better regime is the one with lower final tax after valid exemptions, deductions, rebate, surcharge and cess. The new regime often wins when deductions are limited. The old regime can win when valid claims cross the break-even level.
Is the new tax regime the default option?
Yes. The new regime is the default for eligible taxpayers. You can choose the old regime where permitted, but business or professional income brings separate option and Form 10-IEA rules.
Can ₹12.75 lakh salary have zero tax?
An eligible resident salaried individual can reduce ₹12,75,000 to ₹12 lakh with the ₹75,000 new-regime standard deduction. The Section 87A rebate can then reduce ordinary slab tax to zero when all conditions are met.
How much deduction makes the old regime better?
There is no fixed deduction threshold for everyone. It depends on income, age, residence and deduction mix. The calculator's break-even result estimates how much additional valid old-regime deduction is needed for your figures.
Does age affect both tax regimes?
Age changes old-regime basic exemption for eligible resident senior and super-senior individuals. New-regime slabs remain the same across age groups. NRIs use the general old-regime slabs regardless of age.
Can an NRI claim Section 87A rebate?
No. Section 87A rebate is available to eligible resident individuals. The calculator removes both new-regime and old-regime rebate when NRI status is selected.
Are HRA and home-loan interest available together?
Both can be available under the old regime when their separate legal conditions are met. Eligibility depends on residence, rent payments, property use, loan purpose and supporting records.
Does the comparison include capital gains and surcharge?
Yes, when you enter special-rate income and its separately calculated pre-surcharge tax. The tool estimates surcharge, marginal relief and 4% cess, but complex mixed high-income cases need a detailed review.
Can I use this result to file my return?
Use the result for planning and regime comparison. Verify final income, deductions, elections and tax treatment in the official filing utility or with a qualified tax professional before filing.
Official References
Disclaimer: This calculator provides an educational estimate. It is not tax, legal, accounting or investment advice. Tax depends on facts, documentation, elections, income classification and law in force. Verify the final computation before payment, declaration or filing.