Old vs New Tax Regime Calculator
Enter your yearly income and the deductions you can claim. You get your income tax for FY 2026-27 under both regimes, which one costs less, and how much in deductions the old regime needs to win.
By Hardik Vegad, founder of WealthGamma · Last updated
New regime saves you
₹1,05,300
A year, on an income of ₹15,00,000 with ₹1,75,000 of deductions.
- Deductions counted, old regime
- ₹1,75,000
- Taxable income, new regime
- ₹14,25,000
- Taxable income, old regime
- ₹12,75,000
Income tax for the year
Old regime
₹2,02,800
New regime
₹97,500Lower
The old regime wins only if your deductions cross ₹5,43,750.
| Income | Old regime | New regime |
|---|---|---|
| ₹10L | ₹70,200 | ₹0 |
| ₹15L | ₹2,02,800 | ₹97,500 |
| ₹20L | ₹3,58,800 | ₹1,92,400 |
| ₹30L | ₹6,70,800 | ₹4,75,800 |
| ₹50L | ₹12,94,800 | ₹10,99,800 |
Old or new tax regime: which is better?
The new regime is better for most people, because its slabs are wider and its rates lower. The old regime wins only when your deductions are large enough to make up for that.
On a ₹15,00,000 salary with ₹1,75,000 of deductions, the new regime costs ₹97,500 and the old regime ₹2,02,800. The old regime would need more than ₹5,43,750 of deductions to come out ahead.
How much in deductions does the old regime need to win?
More than most people can claim. The break-even rises with income up to about ₹25 lakh, then stays at ₹8,00,000. Below it, pick the new regime.
| Yearly salary | Tax, new regime | Old regime wins above |
|---|---|---|
| ₹7,50,000 | ₹0 | ₹2,00,000 of deductions |
| ₹10,00,000 | ₹0 | ₹4,50,000 of deductions |
| ₹12,75,000 | ₹0 | ₹7,25,000 of deductions |
| ₹15,00,000 | ₹97,500 | ₹5,43,750 of deductions |
| ₹20,00,000 | ₹1,92,400 | ₹7,08,333 of deductions |
| ₹25,00,000 | ₹3,19,800 | ₹8,00,000 of deductions |
| ₹30,00,000 | ₹4,75,800 | ₹8,00,000 of deductions |
| ₹50,00,000 | ₹10,99,800 | ₹8,00,000 of deductions |
Salaried, so the standard deduction is already counted in both regimes. Deductions here are everything else: 80C, 80D, HRA, home loan interest and so on.
How much tax will you pay under each regime?
With ₹2L of deductions the new regime is cheaper at every salary below. With ₹6L, which usually needs HRA or a home loan on top of 80C, the old regime matches or beats the new one up to a ₹15 lakh salary and still loses above that.
| Yearly salary | New regime | Old, ₹2L deductions | Old, ₹6L deductions |
|---|---|---|---|
| ₹10,00,000 | ₹0 | ₹65,000 | ₹0 |
| ₹15,00,000 | ₹97,500 | ₹1,95,000 | ₹85,800 |
| ₹20,00,000 | ₹1,92,400 | ₹3,51,000 | ₹2,26,200 |
| ₹30,00,000 | ₹4,75,800 | ₹6,63,000 | ₹5,38,200 |
What are the tax slabs under each regime?
The new regime has seven slabs that rise in steps of ₹4 lakh. The old regime has four, and reaches the 30% rate at ₹10 lakh, against ₹24 lakh in the new regime.
| Taxable income | Rate |
|---|---|
| Up to ₹4L | Nil |
| ₹4L to ₹8L | 5% |
| ₹8L to ₹12L | 10% |
| ₹12L to ₹16L | 15% |
| ₹16L to ₹20L | 20% |
| ₹20L to ₹24L | 25% |
| Above ₹24L | 30% |
| Taxable income | Rate |
|---|---|
| Up to ₹2.5L | Nil |
| ₹2.5L to ₹5L | 5% |
| ₹5L to ₹10L | 20% |
| Above ₹10L | 30% |
Plus 4% cess on the tax. No tax is due on taxable income up to ₹12L in the new regime and ₹5L in the old.
Which deductions do you lose in the new regime?
Almost all of the popular ones. This is what each regime allows:
| Deduction | Old regime | New regime |
|---|---|---|
| Standard deduction | ₹50,000 | ₹75,000 |
| Section 80C (PF, PPF, ELSS, life cover) | Up to ₹1.5L | No |
| Section 80D (health insurance) | Yes | No |
| HRA exemption | Yes | No |
| Home loan interest, house you live in | Up to ₹2L | No |
| Your own NPS, 80CCD(1B) | Up to ₹50,000 | No |
| Employer's NPS contribution | Yes | Yes |
A note on names: from 1 April 2026 the Income Tax Act, 2025 renumbers these sections. Section 80C is now Section 123, 80D is Section 126, and the 80CCD NPS deductions are in Section 124. The deductions themselves work the same way, and most people and payroll forms still use the old names, so this page does too.
Check the current rules before you file, or ask a tax professional.
Can you switch between the regimes?
Yes, every year, if your income is salary. The new regime is the default: your employer deducts tax under it unless you opt for the old one. Whatever you told your employer, you can make the final choice when you file your return.
If you have business or professional income, the choice is stickier. Once you leave the new regime, you can return to it only once.
What does this calculator leave out?
It compares the two regimes on one income figure and your main deductions. It doesn't count:
- Capital gains. Gains on shares and funds are taxed at their own rates. Use the LTCG calculator.
- The HRA working. Enter the exempt amount your employer or payslip shows.
- Surcharge relief. Marginal relief on surcharge, which matters just above ₹50 lakh.
- Age. The higher old-regime exemption for senior citizens.
- Employer's NPS. It is deductible in both regimes, so it doesn't change the comparison much.
To see what either regime leaves in your bank account each month, use the in-hand salary calculator.
Frequently asked questions
Which is better, the old or the new tax regime?
The new regime, for most people. The old regime wins only when your deductions are large. On a ₹15 lakh salary, you need more than ₹5,43,750 of deductions, beyond the standard deduction, for the old regime to cost less.
How much income is tax-free under the new regime?
Taxable income up to ₹12L. With the ₹75,000 standard deduction, a salary of up to ₹12,75,000 pays no income tax in FY 2026-27.
Which deductions are allowed in the new tax regime?
Very few: the ₹75,000 standard deduction for salaried people and pensioners, and your employer's contribution to NPS. Section 80C, 80D, HRA and home loan interest on a house you live in are not allowed.
Can I switch between the old and new regime every year?
Yes, if your income is from salary. You can choose afresh each year when you file your return. If you have business or professional income, you can move back to the new regime only once.
Which tax regime is the default?
The new regime. If you tell your employer nothing, tax is deducted from your salary under the new regime. To use the old regime you have to opt for it.
At what deductions does the old regime become better?
It depends on your income. For a salary of ₹10 lakh it is ₹4,50,000, for ₹20 lakh it is ₹7,08,333, and from about ₹25 lakh upward it is ₹8,00,000.
Did Budget 2026 change the tax slabs?
No. The slabs, standard deduction, rebate and cess for FY 2026-27 are the same as the year before, under both regimes.