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Old vs New Tax Regime Calculator

Tax under both regimes for FY 2026-27, and the deductions you need for the old regime to win.

AInputsExample numbers. Type over them.
₹
18 lakh
₹
50 thousand
Old-regime deductions
₹
1.8 lakh
₹
1.5 lakh
₹
25 thousand
₹
₹
50 thousand
₹
Allowed in both regimes
₹
BResultsClick a row to see its formula
B1fxSlab tax on ₹17,75,000, less rebate, plus surcharge and 4% cess
1Tax: new regime₹1,61,200
2Tax: old regime₹2,40,240
3You save withNew regime
4Saving₹79,040
5Old regime wins above₹6,58,334

Your old-regime deductions are ₹4,05,000. The old regime only wins above ₹6,58,334.

Side by side
ScenariosSaved in this browser only

How this calculator works

For FY 2026-27, the first year under the Income-tax Act, 2025, slab rates are the same as last year. The new regime is the default: income up to ₹12 lakh is tax-free after the rebate, and salaried people get a ₹75,000 standard deduction.

The old regime still allows HRA, 80C, 80D, home-loan interest and NPS deductions, but has higher rates. This calculator works out both and the level of deductions at which the old regime starts to win.

Formula

New regime slabs: 0–4L nil, 4–8L 5%, 8–12L 10%, 12–16L 15%, 16–20L 20%, 20–24L 25%, above 24L 30% Rebate up to ₹60,000 if taxable income ≤ ₹12L Old regime slabs: 0–2.5L nil, 2.5–5L 5%, 5–10L 20%, above 10L 30% Rebate up to ₹12,500 if taxable income ≤ ₹5L Surcharge above ₹50L, with marginal relief; then 4% cess

Worked example

On an ₹18 lakh salary with ₹50,000 other income and ₹4.05 lakh of old-regime deductions, the new regime costs ₹1,61,200 and the old regime ₹2,40,240. The old regime would only win if deductions passed about ₹6.6 lakh.

Things to watch

  • Most salaried people below ₹15–20 lakh pay less under the new regime unless they have a large HRA and a home loan.
  • Employer NPS contributions are deductible in both regimes; ask HR to restructure part of your CTC.
  • Salaried employees can switch regimes each year; business owners have limited switching.

Questions

Did tax slabs change for FY 2026-27?

No. Budget 2026 kept the same slabs, rebate and standard deduction; the new Income-tax Act, 2025 applies from 1 April 2026 with the same rates.

Is ₹12 lakh really tax-free?

Under the new regime, yes, for normal income: taxable income up to ₹12 lakh gets a rebate of up to ₹60,000. Salaried people can earn ₹12.75 lakh after the standard deduction.

What is marginal relief?

Just above ₹12 lakh, tax cannot exceed the income above ₹12 lakh. At ₹12.1 lakh, tax is capped at ₹10,000 plus cess.

Does this cover capital gains?

No. Special-rate income such as capital gains is taxed separately and does not get the new-regime rebate.

For planning and education only, not tax, legal or investment advice. Last reviewed 2026-10-31.