SARAL JANKARI
Income Tax Calculator: Old vs New Regime (FY 2026-27)
Start here · Income tax made simple
First, what are the two tax regimes?
Every year you choose how your income is taxed. The new regime has lower rates but allows very few deductions. The old regime has higher rates but lets you subtract investments and expenses such as 80C, health insurance, home-loan interest and HRA. This calculator runs both on your numbers and shows which one costs you less.
Understand the basics, then calculate ↓How to use this calculator
- Enter your yearly incomeUse your gross income before any deduction. Tick the box if you are salaried or a pensioner so the standard deduction applies.
- Add the deductions you really claimOnly the old regime allows 80C, 80D, home-loan interest and HRA. Employer NPS counts in both.
- Read the verdict and the breakdownYou get the better regime, the yearly saving and a line-by-line working for both.
Salary ₹15,00,000, no deductions
New regime ₹97,500Same person
Old regime ₹2,57,400Total tax with cess at FY 2026-27 rates. The old regime only catches up when you claim a large amount of deductions.
What counts as a deduction?
- 80C: PPF, EPF, ELSS, life insurance, home-loan principal (up to ₹1.5 lakh).
- 80D: health insurance premium. 80CCD(1B): own NPS up to ₹50,000.
- Home-loan interest on a self-occupied house up to ₹2 lakh, and HRA if you pay rent.
What should you be careful about?
Rates can change. The Budget can revise slabs every year.
Switching rules differ. Salaried people can choose every year. People with business income have limited chances to switch back.
Capital gains are not included. They are taxed at special rates.
Old vs new tax calculator
Compare your tax in both regimes
Your details
Enter yearly amounts in rupees. Leave blank for zero.
Salary, pension, interest etc., before deductions.
Applies in both regimes.
Old-regime deductions
Max ₹1,50,000
Max ₹50,000
Max ₹1,00,000
Max ₹2,00,000
From your own calculation
Total of others
Your result
FY 2026-27 rates, including 4% cess
Better for you
–
Effective rate: New regime · Old regime
How your tax was worked out
Line-by-line working for both regimes.
| Step | New regime | Old regime |
|---|
New regime slabs (FY 2026-27)
| Taxable income | Rate |
|---|---|
| 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% |
| Above ₹24 lakh | 30% |
Old regime slabs (below 60)
| Taxable income | Rate |
|---|---|
| Up to ₹2.5 lakh | Nil |
| ₹2.5–5 lakh | 5% |
| ₹5–10 lakh | 20% |
| Above ₹10 lakh | 30% |
Senior citizens (60–79) pay nil up to ₹3 lakh, and super seniors (80+) up to ₹5 lakh. Rebate of up to ₹12,500 applies up to ₹5 lakh taxable income.
What this estimate does not include
Capital gains, business income, marginal relief on surcharge above ₹50 lakh, and special cases such as agricultural income. For those, use the official tools or a tax professional.
The Income-tax Act, 2025 came into force on 1 April 2026 and renumbered sections. We keep the familiar names such as 80C so they are easy to recognise.
Read more
See the full comparison, break-even table and deduction rules in our guide.
Frequently asked questions
Which regime is the default?
The new regime is the default. If you want the old regime, you must opt for it, and salaried people tell their employer which one to use for TDS.
Can I switch every year?
Salaried people can choose a regime each year while filing their return. People with business or professional income can switch back to the new regime only once.
Why is my tax nil at ₹12.75 lakh?
Because of the ₹75,000 standard deduction, taxable income is ₹12 lakh, and the 87A rebate cancels the tax up to that level in the new regime.
Is the employer NPS deduction allowed in the new regime?
Yes, the employer contribution under Section 80CCD(2) is allowed in both regimes, within the limits set for it. Your own NPS contribution is allowed only in the old regime.
How accurate is this calculator?
It is a good estimate for regular income. Your actual tax can differ because of capital gains, surcharge relief, TDS already paid or special deductions. Check with the official calculator or a professional before filing.
This calculator is for information only and is not tax advice. Rates and rules can change every Budget. Confirm with the Income Tax Department or a qualified professional before you decide.