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Calculators · ~4 min

Income tax calculator (old vs new regime)

“Which tax regime saves me more?”

Compare tax under the old and new regimes for FY 2025-26 and FY 2026-27, with deductions, rebate, surcharge and cess.

Age

old-regime deductions

old vs new regime

New regime

₹97,500

Taxable income
₹14,25,000
Tax on slabs
₹93,750
Rebate / relief
₹-0
Surcharge
₹0
Health & education cess (4%)
₹3,750

Old regime

₹2,02,800

Taxable income
₹12,75,000
Tax on slabs
₹1,95,000
Rebate / relief
₹-0
Surcharge
₹0
Health & education cess (4%)
₹7,800

The new regime saves you about ₹1,05,300 a year.

FY 2025-26 and FY 2026-27 slab rates (Budget 2026 made no change). New-regime rebate makes income up to ₹12 lakh tax-free, with marginal relief above it. Special-rate income such as capital gains, and marginal relief on surcharge, are not included. This is an estimate, not tax advice.

the guide

Old vs new tax regime: which saves you more?

By Shivam Bhandari · Reviewed 31 October 2026 · How we write

India has two personal income tax regimes. The new regime (the default) has lower slab rates and a rebate that makes taxable income up to ₹12 lakh tax-free, but allows very few deductions. The old regime has higher rates but allows deductions such as 80C, 80D, HRA and home loan interest.

Budget 2026 kept the slabs unchanged, so FY 2026-27 uses the same rates as FY 2025-26. Which regime is better depends on your income and how many deductions you can claim.

the 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%

  • · Old regime: up to ₹2.5L nil (₹3L for 60–80, ₹5L for 80+) · to ₹5L 5% · 5–10L 20% · above 10L 30%.
  • · Rebate: new regime up to ₹60,000 (taxable income ≤ ₹12L); old regime up to ₹12,500 (≤ ₹5L).
  • · Surcharge applies above ₹50 lakh; a 4% health and education cess applies on all tax.

Worked example: ₹15 lakh salary

  • New regime: taxable ₹14,25,000 after standard deduction → tax ≈ ₹97,500.
  • Old regime with ₹1.5L 80C and ₹25,000 80D: taxable ₹12,75,000 → tax ≈ ₹2,02,800.
  • The new regime saves about ₹1,05,300 — the old regime only wins with large deductions such as HRA and home loan interest.

Tips

  1. 1Run both regimes every year — your best choice can change.
  2. 2Total up all eligible old-regime deductions before deciding.
  3. 3Salaried employees usually choose a regime with their employer for TDS, and can still compare when filing (business income has stricter switching rules).
  4. 4Keep proofs of deductions in case they are needed.

Frequently asked questions

What are the income tax slabs for FY 2026-27?

Under the new regime: nil up to ₹4 lakh, 5% from ₹4–8 lakh, 10% ₹8–12 lakh, 15% ₹12–16 lakh, 20% ₹16–20 lakh, 25% ₹20–24 lakh and 30% above ₹24 lakh. Budget 2026 made no changes.

Is income up to ₹12 lakh tax-free?

Under the new regime, taxable income up to ₹12 lakh attracts no tax because of the rebate. Salaried taxpayers also get a ₹75,000 standard deduction.

Which deductions are allowed in the new regime?

Very few — mainly the standard deduction for salaried taxpayers and the employer's NPS contribution. Most deductions like 80C, 80D and HRA are only in the old regime.

When is the old regime better?

Usually when you have large deductions — for example HRA, home loan interest and full 80C and 80D — that reduce taxable income substantially.