Calculator
Old vs new tax regime calculator
Which regime saves you more tax in FY 2026-27? Enter your income and the deductions you actually claim — the answer updates as you type.
₹15.00 L a year
Deductions you claim (old regime only)
Leave at zero what you don't have. Section numbers show the old name and the new one under the Income-tax Act, 2025.
₹1,50,000 · max ₹1.50 L
₹0 · max ₹50,000
₹25,000 · self + parents, up to ₹1.00 L
₹0 · max ₹2.00 L
₹0
₹0 · up to 14% of basic (new) / 10% (old)
Your tax, FY 2026-27
The new regime saves you about ₹1,05,300 a year.
New regime Lower tax
₹97,500
Taxable income ₹14,25,000 · includes 4% cess
Old regime
₹2,02,800
Taxable income ₹12,75,000 · deductions ₹2,25,000
For the old regime to match, you'd need about ₹3,69,000 more in deductions than you've entered.
An estimate for income up to ₹50 lakh — not tax advice.
Good to know
How to read the result
The new regime has lower rates and a bigger standard deduction (₹75,000), but almost no other deductions. The old regime has higher rates, but lets you subtract 80C, NPS, health insurance, home-loan interest and HRA. Which one wins depends on how much you actually claim.
A tip before you switch: don't invest in something just to save tax. If a deduction fits a real goal — retirement through NPS, health cover for parents — it's worth it. If it doesn't, the new regime is often simpler and cheaper. Not sure? Read my NPS tax guide or grab the free tax-saving checklist.
FAQ
Common questions
Which tax regime is the default for FY 2026-27?
The new regime is the default. If you want the old regime, you have to choose it — salaried people tell their employer at the start of the year and confirm the choice when filing the return.
Is income up to ₹12 lakh really tax-free under the new regime?
Yes, for resident individuals: the rebate makes tax nil when taxable income is up to ₹12 lakh. Salaried people also get the ₹75,000 standard deduction, so a salary of up to ₹12.75 lakh pays no tax. Just above ₹12 lakh, marginal relief keeps your tax from exceeding the income earned above ₹12 lakh. The rebate doesn't cover special-rate income such as capital gains on shares.
When does the old regime work out better?
When your deductions are large — typically a full ₹1.5 lakh under 80C, the extra ₹50,000 NPS, health insurance for you and your parents, home-loan interest and HRA together. The calculator shows roughly how much in deductions you'd need for the old regime to win.
What changed with the Income-tax Act, 2025?
From 1 April 2026 the Income-tax Act, 2025 replaced the 1961 Act. Budget 2026 kept the slab rates, standard deduction and rebate the same; mainly the section numbers changed — for example 80C is now section 123, NPS deductions are section 124 and health insurance (80D) is section 126. The year is now called the 'tax year'.
Does this calculator cover everything?
It covers the common cases for income up to ₹50 lakh: salary or pension, standard deduction, the main old-regime deductions and employer NPS. It doesn't include surcharge, capital gains or business-specific rules. For those, book a free call.
For educational purposes only — not tax or investment advice. Based on slab rates, standard deduction and rebate for Tax Year 2026-27 for resident individuals, including 4% health & education cess, for income up to ₹50 lakh (surcharge not included). Deduction limits and eligibility conditions apply; please verify with your employer or a tax professional before choosing a regime. Last checked: October 2026.