Old vs New Tax Regime Calculator
Enter your salary and the deductions you can claim to see which regime costs you less tax in Tax Year 2026-27, by how much, and the exact amount of deductions the old regime needs to break even at your income. Updated for the Income-tax Act, 2025 and the Income-tax Rules, 2026.
Your income for Tax Year 2026-27
Old regime: exemptions and deductions you can claim
The new regime is cheaper by ₹32,760 a year. You claim ₹4,07,500 of deductions; the old regime needs ₹5,44,000 to break even, so you would need ₹1,36,500 more.
Deductions are counted beyond the ₹50,000 standard deduction and include HRA exemption and professional tax. Employer NPS is deducted in both regimes (up to 14% of basic in the new regime, 10% in the old for private employers). Surcharge includes marginal relief; 4% cess. Checked 2026-10-23.
Which tax regime is better?
The new regime, for most salaried people. The old regime wins only if your exemptions and deductions, beyond the standard deduction, exceed the break-even for your salary: about ₹5.44 lakh at ₹15 lakh and ₹8 lakh from ₹25 lakh. Up to ₹12.75 lakh of salary the new regime has no tax at all, so the old regime almost never wins there.
Break-even deductions by salary
If your deductions are above the figure for your salary, the old regime saves tax; below it, the new regime does. For a salaried person below 60 with no other income, counting HRA exemption, professional tax and all deductions, but not the ₹50,000 standard deduction:
| Gross salary | Tax in the new regime | Old regime needs deductions of |
|---|---|---|
| ₹10 lakh | Nil | ₹4.5 lakh |
| ₹12 lakh | Nil | ₹6.5 lakh |
| ₹12.75 lakh | Nil | ₹7.25 lakh |
| ₹13 lakh | ₹26,000 | ₹6.88 lakh |
| ₹14 lakh | ₹81,900 | ₹5.19 lakh |
| ₹15 lakh | ₹97,500 | ₹5.44 lakh |
| ₹16 lakh | ₹1,13,100 | ₹5.69 lakh |
| ₹18 lakh | ₹1,50,800 | ₹6.42 lakh |
| ₹20 lakh | ₹1,92,400 | ₹7.09 lakh |
| ₹22 lakh | ₹2,40,500 | ₹7.55 lakh |
| ₹24 lakh | ₹2,92,500 | ₹7.88 lakh |
| ₹25 lakh | ₹3,19,800 | ₹8 lakh |
| ₹30 lakh | ₹4,75,800 | ₹8 lakh |
| ₹40 lakh | ₹7,87,800 | ₹8 lakh |
| ₹50 lakh | ₹10,99,800 | ₹8 lakh |
The break-even dips just above ₹12.75 lakh, where the new regime’s tax starts, and settles at ₹8 lakh from about ₹25 lakh, where both regimes reach the 30% slab. Few people can claim ₹8 lakh: it takes the maximum home loan interest, Section 123, NPS and health insurance plus a large HRA exemption.
Example: ₹15 lakh salary
With ₹1.8 lakh of HRA exemption, ₹1.5 lakh under Section 123 (formerly 80C), ₹50,000 of NPS, ₹25,000 of health insurance and ₹2,500 of professional tax, deductions total ₹4.08 lakh, below the ₹5.44 lakh break-even: the new regime saves ₹32,760.
| New regime | Old regime | Old regime + ₹2 lakh home loan interest | |
|---|---|---|---|
| Taxable income | ₹14,25,000 | ₹10,42,500 | ₹8,42,500 |
| Tax with cess | ₹97,500 | ₹1,30,260 | ₹84,240 |
| Cheaper by | ₹32,760 | ₹13,260 (old wins) |
Each extra ₹10,000 of deductions saves ₹3,120 in the old regime at the 30% slab, and ₹2,080 at the 20% slab, so it is worth checking the total, not each deduction on its own.
Tax slabs: new vs old regime
| Taxable income | New regime | Old regime (below 60) |
|---|---|---|
| Up to ₹2.5 lakh | Nil | Nil |
| ₹2.5 lakh – ₹4 lakh | Nil | 5% |
| ₹4 lakh – ₹5 lakh | 5% | 5% |
| ₹5 lakh – ₹8 lakh | 5% | 20% |
| ₹8 lakh – ₹10 lakh | 10% | 20% |
| ₹10 lakh – ₹12 lakh | 10% | 30% |
| ₹12 lakh – ₹16 lakh | 15% | 30% |
| ₹16 lakh – ₹20 lakh | 20% | 30% |
| ₹20 lakh – ₹24 lakh | 25% | 30% |
| Above ₹24 lakh | 30% | 30% |
| Standard deduction | ₹75,000 | ₹50,000 |
| Rebate (Section 156 (formerly 87A)) | Up to ₹60,000: tax-free to ₹12 lakh, with marginal relief | Up to ₹12,500: tax-free to ₹5 lakh |
| Highest surcharge | 25% | 37% (above ₹5 crore) |
Seniors aged 60 to 79 have a ₹3 lakh exemption in the old regime and those aged 80 or more ₹5 lakh; the new regime is the same for all ages. The new regime is set out in Section 202 (formerly 115BAC).
What the old regime allows that the new one does not
- HRA exemption: from 1 April 2026, 50% of basic in Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad (40% elsewhere). Work it out in the HRA Exemption Calculator.
- Section 123 (formerly 80C): up to ₹1.5 lakh for EPF, PPF, ELSS, life insurance, tuition fees, home loan principal, NSC and more.
- Own NPS contribution: an extra ₹50,000 (formerly 80CCD(1B)).
- Health insurance: ₹25,000 for yourself and family (₹50,000 if 60+), plus ₹25,000 or ₹50,000 for parents.
- Home loan interest on a self-occupied home: up to ₹2 lakh.
- Education loan interest, donations, savings-account interest (₹10,000; ₹50,000 on all deposits for seniors), professional tax, LTA, and the children’s education and hostel allowances (₹3,000 and ₹9,000 a month per child from April 2026).
Allowed in both: employer’s NPS contribution (up to 14% of basic in the new regime, 10% in the old for private employers), the employer’s contribution to the Agniveer Corpus Fund, and exemptions such as gratuity and leave encashment on retirement within their limits.
How to choose and switch regimes
- The new regime is the default. If you do nothing, your employer deducts TDS under it.
- Salaried, with no business income: tell your employer your choice at the start of the year for TDS, then choose again when you file your return; you can change every year.
- With business or professional income: you can leave the new regime by filing the prescribed form by the return due date, and return to it only once.
- Re-check every year, especially when you take a home loan, start paying rent in one of the eight 50% cities, or cross ₹12.75 lakh.
When to use a different calculator
- Your full tax with capital gains and other income? Use the Income Tax Calculator.
- How much of your HRA is tax-free? Use the HRA Exemption Calculator.
- How much of the ₹1.5 lakh Section 123 (80C) limit is left? Use the Section 80C Calculator.
- Take-home pay after tax and PF? Use the In-Hand Salary Calculator.
- Instalments due on income without TDS? Use the Advance Tax Calculator.
Sources
- Income Tax Department: Income-tax Act, 2025 and tax slabs (Government of India)
- Final Income-tax Rules 2026 notified: HRA, new vs old regime (Upstox)
- HRA to children's education allowance: new income tax rules (BDO India)
- Old vs new tax regime FY 2026-27: salaried employees checklist (TaxGuru)
This is general information, not tax or investment advice. See how we check rates and our corrections log.
