Old vs New Tax Regime Calculator (FY 2026-27 & AY 2027-28)
The New vs Old Tax Regime comparison determines whether an Indian taxpayer pays less income tax under the default concessional slab system (Section 115BAC) or the traditional deduction-heavy system. In FY 2026-27, the New Regime offers an enhanced ₹75,000 standard deduction and tax-free income up to ₹7.75 Lakhs, while the Old Regime requires over ₹3.75 Lakhs in deductions to break even.
Taxable Income & Deductions
Total earnings before applying any chapter VI-A deductions or exemptions
Statutory maximum cap: ₹1,50,000 per financial year
Up to ₹25,000 for self/family (+ up to ₹25,000 for senior citizen parents)
Exempt portion of House Rent Allowance based on rent receipts
Deduction on self-occupied house property interest (Max ₹2,00,000)
Additional voluntary NPS contribution deduction up to ₹50,000
| Component | New Tax Regime | Old Tax Regime |
|---|---|---|
| Gross Income | ₹15,00,000 | ₹15,00,000 |
| Total Deductions Claimed | ₹75,000 | ₹3,95,000 |
| Net Taxable Income | ₹14,25,000 | ₹11,05,000 |
| Tax Before Cess | ₹1,25,000 | ₹1,44,000 |
| Health & Education Cess (4%) | ₹5,000 | ₹5,760 |
| Total Tax Liability | ₹1,30,000 | ₹1,49,760 |
You save ₹19,760 in taxes by selecting the New Tax Regime!
Breakeven Deduction Benchmark
For an income of ₹15,00,000, you need at least ₹3,75,000 in total deductions (80C + 80D + HRA + Home Loan) for the Old Regime to beat the New Regime.
Tax Burden Comparison
Rated 4.9/5 based on 2,480 user calculations for Old vs New Tax Regime Calculator.
Tax computation under both regimes applies the progressive bracket model followed by mandatory statutory cess:
Enhanced Standard Deduction & Zero Tax up to ₹7.75L
Applies an enhanced ₹75,000 standard deduction for salaried individuals. Full rebate under Section 87A applies on taxable incomes up to ₹7,00,000, ensuring zero income tax for salaried earnings up to ₹7,75,000.
₹50,000 SD + Section 80C, 80D, HRA & Home Loan
Permits comprehensive deductions including ₹1.5 Lakhs (80C), ₹25,000-₹50,000 (80D), Section 24(b) housing loan interest up to ₹2 Lakhs, and Rule 2A HRA exemptions, but features steeper tax slabs up to 30%.
4% Statutory Surcharge
Both regimes apply an additional 4% Health & Education Cess on the total computed basic tax liability prior to arriving at the final payable or refundable balance.
Scenario: Ankit earns ₹15,00,000 gross salary in Mumbai. Under the Old Regime, he claims ₹1,50,000 (80C), ₹25,000 (80D), and ₹1,20,000 (HRA). Total Old Regime deductions = ₹3,45,000 (including ₹50k SD).
| Comparison Metric | New Tax Regime (FY 2024-25/26) | Old Tax Regime (With Deductions) |
|---|---|---|
| Gross Income | ₹15,00,000 | ₹15,00,000 |
| Standard Deduction | ₹75,000 (Enhanced) | ₹50,000 |
| Chapter VI-A Deductions | ₹0 (Disallowed) | ₹2,95,000 (80C + 80D + HRA) |
| Net Taxable Income | ₹14,25,000 | ₹11,55,000 |
| Base Income Tax | ₹1,25,000 | ₹1,59,000 |
| Total Tax (incl. 4% Cess) | ₹1,30,000 (Saves ₹35,360!) | ₹1,65,360 |
*Conclusion: Even with ₹2.95 Lakhs in voluntary investments and rent, Ankit saves ₹35,360 under the New Tax Regime due to significantly lower tax slabs and the ₹75,000 standard deduction.
Side-by-Side Slabs: New vs Old Tax Regime
| New Tax Regime Slabs | New Tax Rate | Old Tax Regime Slabs | Old Tax Rate |
|---|---|---|---|
| ₹0 to ₹3,00,000 | NIL | ₹0 to ₹2,50,000 | NIL |
| ₹3,00,001 to ₹7,00,000 | 5% (Full 87A Rebate) | ₹2,50,001 to ₹5,00,000 | 5% (Full 87A Rebate) |
| ₹7,00,001 to ₹10,00,000 | 10% | ₹5,00,001 to ₹10,00,000 | 20% |
| ₹10,00,001 to ₹12,00,000 | 15% | Above ₹10,00,000 | 30% |
| ₹12,00,001 to ₹15,00,000 | 20% | - | - |
| Above ₹15,00,000 | 30% | - | - |
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Frequently Asked Questions (Old vs New Tax Regime)
What are the income tax slabs under the New Tax Regime?
For FY 2026-27 (AY 2027-28), the New Tax Regime slabs are: ₹0 to ₹3L: Nil; ₹3L to ₹7L: 5%; ₹7L to ₹10L: 10%; ₹10L to ₹12L: 15%; ₹12L to ₹15L: 20%; and Above ₹15L: 30%. In addition, salaried employees receive an increased standard deduction of ₹75,000.
What is the breakeven deduction level where the Old Regime becomes better than the New Regime?
For middle and upper-middle income earners (₹10 Lakhs to ₹15 Lakhs), you typically require total deductions of at least ₹3.75 Lakhs to ₹4.25 Lakhs (combining Section 80C, 80D, HRA exemption, and Section 24 home loan interest) for the Old Tax Regime to deliver higher tax savings than the New Regime.
Can salaried individuals switch between Old and New Tax Regimes every year?
Yes. Salaried individuals with no business or professional income can switch between the Old and New Tax Regimes every financial year at the time of filing their Income Tax Return (ITR-1 or ITR-2) under Section 139(1). However, individuals with business income can opt out of the new regime only once in a lifetime.
How does the Section 87A rebate differ between the New and Old Regimes?
Under the New Tax Regime, Section 87A provides a full rebate on taxable income up to ₹7,00,000 (meaning zero tax up to ₹7.75 Lakhs gross income for salaried employees). In contrast, the Old Tax Regime limits the Section 87A rebate to a taxable income of ₹5,00,000 (maximum rebate of ₹12,500).
Is the ₹75,000 standard deduction available in the Old Tax Regime as well?
No. The enhanced ₹75,000 standard deduction introduced in Finance Act 2024 applies strictly to the New Tax Regime (Section 115BAC). Under the Old Tax Regime, the standard deduction for salaried individuals remains capped at the earlier level of ₹50,000.