New vs Old Tax Regime Calculator FY 2026-27
India-specific (FY 2026-27). One question decides your take-home pay this year: do your deductions outweigh the new regime's lower rates? Enter both sides and get the answer.
Verdict
New regime saves ₹1.5 L
- New regime tax
- ₹1,50,800
- Old regime tax
- ₹2,96,400
- Your deductions
- ₹1.8 L
- Pick
- New regime
FY 2026-27 slabs, salaried standard deductions, 4% cess included. Surcharge above 50L not modelled.
Full breakdown
| Item | New regime | Old regime |
|---|---|---|
| Gross income | ₹18,00,000 | ₹18,00,000 |
| Standard deduction | ₹75,000 | ₹50,000 |
| Other deductions | Not allowed | ₹1,75,000 |
| Taxable income | ₹17,25,000 | ₹15,75,000 |
| Tax before cess | ₹1,45,000 | ₹2,85,000 |
| Total tax (with 4% cess) | ₹1,50,800 | ₹2,96,400 |
A purely arithmetic decision
Since Budget 2025 the new regime is the default, and Budget 2026 left the structure unchanged for FY 2026-27. The new regime trades deductions for lower rates: no 80C, no HRA exemption, no home loan interest, but wider slabs, a bigger 75,000 standard deduction and zero tax up to 12 lakh taxable income.
The decision is purely arithmetic: your deductions have a break-even value, and this tool computes both sides of it. The common mistake is defaulting to the old regime out of habit while claiming only 80C, which now loses money at most income levels. The reverse mistake also exists: metro renters with home loans can still beat the new regime by a wide margin.
FAQ
What are the new regime slabs for FY 2026-27?
Nil up to 4 lakh, 5% for 4 to 8 lakh, 10% for 8 to 12 lakh, 15% for 12 to 16 lakh, 20% for 16 to 20 lakh, 25% for 20 to 24 lakh and 30% above 24 lakh, plus 4% cess. Salaried taxpayers get a 75,000 standard deduction, and the Section 87A rebate makes taxable income up to 12 lakh tax-free.
Who is the old regime still good for?
People with heavy deductions: typically a home loan with interest up to 2 lakh, high HRA exemption in a metro, full 80C, 80D and NPS contributions. As a rough rule, if your total deductions beyond the standard deduction exceed 4 to 4.5 lakh on higher incomes, the old regime is worth checking.
What is marginal relief in the new regime?
If your taxable income is slightly above 12 lakh, your tax is capped at the amount by which your income exceeds 12 lakh, so earning 12.1 lakh can never leave you worse off than earning 12 lakh. This calculator applies it automatically.
Does this calculator handle surcharge?
No. Surcharge applies above 50 lakh of income and differs by regime, so this tool is accurate below that level. It also assumes salaried income where the standard deduction applies. Verify large or complex cases with a CA.
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