Old vs New Tax Regime Calculator
Compare your income tax under India's new and old regimes for 2026-27 and find the deductions you'd need for the old one to win.
About the Old vs New Tax Regime Calculator
The new regime has lower rates, a ₹75,000 standard deduction and no tax up to ₹12 lakh of taxable income, but allows almost no deductions. The old regime has a ₹50,000 standard deduction and allows 80C, 80D, HRA, home-loan interest and more. Salaried people can choose each year.
The formula
Compare (slab tax − rebate + surcharge) × 1.04 under each regime
Income tax slabs, tax year 2026-27
| Income | New regime | Old regime (below 60) |
|---|---|---|
| Up to ₹2.5 lakh | Nil | Nil |
| ₹2.5–4 lakh | Nil | 5% |
| ₹4–5 lakh | 5% | 5% |
| ₹5–8 lakh | 5% | 20% |
| ₹8–10 lakh | 10% | 20% |
| ₹10–12 lakh | 10% | 30% |
| ₹12–16 lakh | 15% | 30% |
| ₹16–20 lakh | 20% | 30% |
| ₹20–24 lakh | 25% | 30% |
| Above ₹24 lakh | 30% | 30% |
Worked example
Example: Lower tax = New regime
- Inputs: Gross yearly salary: ₹18,00,000; 80C investments (max ₹1.5 lakh): ₹1,00,000; 80D health insurance: ₹20,000; HRA exemption: ₹1,50,000; Home-loan interest, self-occupied (max ₹2 lakh): ₹0; Other old-regime deductions (NPS 80CCD(1B), 80E…): ₹50,000; Age: Below 60.
- Formula: Compare (slab tax − rebate + surcharge) × 1.04 under each regime
- Result: Lower tax = New regime
Questions people ask
Can I switch every year?
Salaried individuals can; those with business income can switch back to the new regime only once.
Is the employer's NPS contribution allowed in the new regime?
Yes, up to 14% of basic + DA under 80CCD(2).