Old vs New Tax Regime Calculator
By Varun M
Enter your gross income and, if you want the old regime compared fairly, your usual deductions. This is a situational comparison, not a full tax return — it tells you which regime costs less for your numbers, and by how much.
Old-regime deductions
The new regime doesn't allow these — only your ₹75,000 standard deduction and the slabs apply there. Fill in whatever's relevant to you; leave the rest at 0.
Enter a valid gross annual income to see your comparison.
New regime tax — lower
Taxable income:
Old regime tax — lower
Taxable income:
saves you
How to use this calculator
Enter your gross annual income. If you want a fair comparison against the old regime, add whatever old-regime deductions apply to you — 80C, 80D, HRA exemption, home loan interest, or NPS. Leave any that don't apply at 0. The new regime doesn't use any of these; it just applies its own ₹75,000 standard deduction and slabs.
The two regimes, side by side
| New regime (default) | Old regime | |
|---|---|---|
| Standard deduction | ₹75,000 | ₹50,000 |
| Slabs start taxing at | ₹4,00,000 | ₹2,50,000 |
| Top rate | 30% above ₹24,00,000 | 30% above ₹10,00,000 |
| 87A rebate | Up to ₹60,000 (taxable income ≤ ₹12,00,000) | Up to ₹12,500 (taxable income ≤ ₹5,00,000) |
| Deductions allowed | Almost none | 80C, 80D, HRA, home loan interest, NPS, and more |
Section 87A and Section 80C above are Income-tax Act, 1961 citations — still correct for the FY 2025-26/AY 2026-27 figures this page is built around. The Income-tax Act, 2025 renumbers them (Section 156 and Section 123 respectively) from Tax Year 2026-27 onward; see what changed under the Income-tax Act, 2025. (Section 24(b), the home loan interest cap noted below, is also renumbered under the new Act, but we haven't been able to confirm its new number to a reliable source yet.)
New regime slabs (FY 2025-26 / AY 2026-27)
- 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%
Old regime slabs
- Up to ₹2,50,000 — Nil
- ₹2,50,001 – ₹5,00,000 — 5%
- ₹5,00,001 – ₹10,00,000 — 20%
- Above ₹10,00,000 — 30%
Worked example — ₹12.75L salary, no other deductions
A salaried employee with ₹12,75,000 gross income and no old-regime deductions to claim:
- New regime: taxable income = ₹12,75,000 − ₹75,000 = ₹12,00,000. Slab tax on this is ₹60,000 — but the 87A rebate (up to ₹60,000, since taxable income is exactly at the ₹12L threshold) wipes it out. Tax = ₹0.
- Old regime: taxable income = ₹12,75,000 − ₹50,000 = ₹12,25,000, well above the ₹5L rebate threshold. Slab tax works out to ₹1,80,000, plus 4% cess (₹7,200). Tax = ₹1,87,200.
For this person, the new regime saves ₹1,87,200 — a clear case where the new regime wins outright.
Worked example — ₹18L salary with a home loan
An ₹18,00,000 earner with ₹1,50,000 in 80C, a ₹2,10,000 home loan interest claim (capped at ₹2,00,000), and ₹40,000 of 80D:
- New regime: taxable income = ₹18,00,000 − ₹75,000 = ₹17,25,000. No deductions allowed here. Slab tax ₹1,45,000, plus cess (₹5,800). Tax = ₹1,50,800.
- Old regime: taxable income = ₹18,00,000 − ₹50,000 − ₹1,50,000 − ₹2,00,000 − ₹40,000 = ₹13,60,000. Slab tax ₹2,20,500, plus cess (₹8,820). Tax = ₹2,29,320.
Here the new regime still wins, saving ₹78,520 — but the gap narrows considerably once real deductions are in the picture, which is exactly why this needs a calculator, not a rule of thumb.
Marginal relief: why crossing a threshold doesn't always cost what you'd expect
In the new regime, if your taxable income is just above ₹12,00,000, you don't lose the entire ₹60,000 rebate at once — marginal relief caps your tax at no more than the amount by which you crossed ₹12L. Taxable income of ₹12,10,000, for example, works out to just ₹10,000 tax (not the ₹61,500 the slabs alone would suggest).
The old regime has no such relief at its ₹5,00,000 threshold — cross it by even ₹1 and the full ₹12,500 rebate is gone at once. The same marginal-relief logic also applies to the surcharge thresholds (₹50L, ₹1cr, ₹2cr, and ₹5cr under the old regime) in both regimes, so crossing one of those doesn't create a sudden cliff either.
Who should use each regime
- Little or no 80C/80D/HRA/home-loan deductions to claim → the new regime almost always wins.
- Home loan on a self-occupied property, maxed-out 80C, and HRA → worth comparing directly, especially between roughly ₹15L–₹25L income — the gap can flip either way.
- Freelancers and business owners without HRA or home-loan claims → usually the new regime, but check your specific 80C/80D situation.
Situational guides
Worked-out numbers for the questions people actually ask, using this calculator's own logic:
- HRA Exemption Calculator — work out the exact rupee figure to enter above, including the new 8-city metro list.
- Old vs new regime for salaried income above ₹12 lakh — what marginal relief actually does to your tax just past the threshold.
- Old vs new regime with a home loan — does a maxed-out home loan flip the result? We checked.
- Old vs new regime for freelancers — the standard deduction doesn't apply to freelance income; here's what does.
- Standard deduction under the new regime — why ₹12.75L, not ₹12L, is the real tax-free number.
- Which tax regime is better for me? — a quick decision guide across all of the above.
- Senior citizen: old vs new tax regime — does the higher senior exemption flip the comparison? We checked.
- Claiming HRA and home loan interest together — yes, you can — here's how the numbers work.
- Income-tax Act, 2025: what changed — the new Act renumbers Section 87A and Section 80C (among others) from Tax Year 2026-27 — the transition boundary, explained.
FAQ
It depends on your income and how many old-regime deductions you actually claim. With little or no 80C/80D/HRA/home-loan deductions, the new regime almost always wins. With a home loan, maxed-out 80C, and HRA, the old regime can still come out ahead — especially in the ₹15L–₹25L range. Use the calculator above with your real numbers rather than a rule of thumb.
Yes, for taxable income up to ₹12,00,000 — and up to ₹12,75,000 gross salary once the ₹75,000 standard deduction is applied. This works via the Section 87A rebate (Section 156 under the Income-tax Act, 2025, from Tax Year 2026-27 — Section 87A is still correct for the AY 2026-27 return you're filing now), which cancels out slab tax entirely up to that threshold; it isn't a change to the slabs themselves.
The new regime has marginal relief: your tax is capped at no more than the amount by which your taxable income exceeds ₹12,00,000. So at ₹12,10,000 taxable income, tax works out to about ₹10,000, not the full ₹61,500 the slabs alone would suggest. This relief only exists in the new regime — the old regime's ₹5,00,000 rebate threshold has no such cushion.
Salaried individuals without business income can choose either regime each financial year when filing their return. If you have business or professional income, switching back to the old regime after opting for the new one is more restricted — check the current rules or a tax professional for your specific situation.
Yes. Surcharge applies above ₹50 lakh (10%), ₹1 crore (15%), and ₹2 crore (25%) in both regimes, with an additional 37% tier above ₹5 crore in the old regime only — the new regime caps surcharge at 25%. Marginal relief is applied at each surcharge threshold too, so crossing one by a small amount doesn't create a sudden jump.
Formula last verified: 12 Aug 2026
Sources: incometax.gov.in — "Salaried Individuals for AY 2026-27" (https://www.incometax.gov.in/iec/foportal/help/individual/return-applicable-1). Do not use the site's general "New Tax vs Old Tax Regime FAQs" page as a source — it is stale and still shows the pre-Budget-2025 ₹7L rebate threshold. Section 87A of the Income-tax Act, 1961 (Section 156 under the Income-tax Act, 2025, applicable from Tax Year 2026-27) and Section 80C of the Income-tax Act, 1961 (Section 123 under the Income-tax Act, 2025) — 1961-Act numbering still governs AY 2026-27 filings, the ones this calculator is built around; the 2025-Act numbers apply going forward. See /income-tax-act-2025-what-changed/.
This is an indicative estimate for FY 2025-26 (AY 2026-27), based on the slabs, standard deduction, 87A rebate, surcharge, and cess rules published on incometax.gov.in as understood at the time of writing. It does not cover every possible deduction, capital gains, or non-salary income, and tax rules can change with each Union Budget. Confirm your exact liability with a qualified tax professional before filing or making financial decisions.