Income Tax Calculator (Old vs New Regime)
Compare your income tax under the old and new regimes for FY 2026-27 (AY 2027-28) and find out which saves you more.
Old Regime
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New Regime
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Old: Take-home
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New: Take-home
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Old vs new regime: how the comparison works
The new tax regime is the default from FY 2023-24 onwards. It offers wider slabs and lower rates but disallows most deductions. The old regime keeps higher rates but lets you claim 80C, 80D, HRA, home-loan interest, and more. This calculator computes both so you can pick the cheaper one.
New regime slabs — FY 2026-27 (AY 2027-28)
- Up to ₹4,00,000 — Nil
- ₹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%
Standard deduction: ₹75,000 (salaried). Section 87A rebate makes tax nil for taxable income up to ₹12 lakh. A 4% health & education cess applies on top of the computed tax in both regimes.
Old regime, briefly
Slabs: nil up to ₹2.5 lakh, 5% to ₹5 lakh, 20% to ₹10 lakh, 30% above. Standard deduction ₹50,000; 87A rebate for taxable income up to ₹5 lakh. Deductions allowed: 80C (₹1.5 lakh), 80D, HRA, ₹2 lakh home-loan interest, and more.
Tax rules change with every Budget. This is an educational estimate — verify against the latest Income-tax provisions or a qualified chartered accountant before filing.
Frequently Asked Questions
What are the new regime tax slabs for FY 2026-27?
Under the new regime (default): up to ₹4 lakh nil, ₹4–8 lakh 5%, ₹8–12 lakh 10%, ₹12–16 lakh 15%, ₹16–20 lakh 20%, ₹20–24 lakh 25%, and above ₹24 lakh 30%. A standard deduction of ₹75,000 applies to salaried taxpayers, plus 4% health & education cess on the tax.
What is the Section 87A rebate in the new regime?
Under the new regime, if your taxable income is up to ₹12 lakh, a rebate under Section 87A (up to ₹60,000) makes your tax effectively nil. With the ₹75,000 standard deduction, salaried individuals earning up to ₹12.75 lakh gross can pay zero tax.
Should I choose the old or new regime?
The new regime usually wins unless you claim large deductions (80C, 80D, home-loan interest, HRA). As a rule of thumb, if your total deductions exceed roughly ₹4–4.5 lakh, the old regime may still be better. This calculator compares both for your numbers.
Which deductions are NOT allowed in the new regime?
The new regime disallows most deductions including 80C, 80D, HRA, LTA, and home-loan interest on a self-occupied house. It does allow the standard deduction (₹75,000), employer NPS contribution (80CCD(2)), and a few others.
Is this calculator a substitute for tax filing advice?
No. It is an educational estimate using standard slabs and common deductions. Surcharge on very high incomes, marginal relief, and special-rate incomes (capital gains, lottery) are simplified or excluded. Verify against the latest Income-tax provisions or a qualified CA before filing.
Disclaimer: This calculator produces illustrative estimates only. Actual returns vary and, unless stated otherwise, results exclude expense ratios, exit loads, transaction costs, and taxes. Assumed rates are inputs, not forecasts or assured returns. This is educational content, not personalized investment advice — see our full disclaimer.