Old vs new tax regime calculator for FY 2026-27
For FY 2026-27, which the Income-tax Act, 2025 calls tax year 2026-27. Budget 2026 left the slabs unchanged, so the result also holds for the FY 2025-26 return you file this year. Enter your income and deductions and see which regime costs less. Nothing you enter leaves your browser.
Old vs new tax regime comparator
FY 2026-27 (tax year 2026-27): slabs under section 202, the standard deduction, the ₹12 lakh rebate under section 156 with marginal relief, surcharge and cess.
Includes 4% health and education cess and surcharge where applicable. Indicative only: it does not model capital gains or other special-rate income, clubbing, arrears relief or other situation-specific rules. Rates checked against the Income-tax Act, 2025 and the Finance Bill 2026 memorandum on 7 October 2026. Have a CA model your actual position.
How the comparison works
The new regime for FY 2026-27 (section 202 of the Income-tax Act, 2025) taxes income in seven slabs: nil up to ₹4 lakh, then 5, 10, 15, 20 and 25 percent in ₹4 lakh steps to ₹24 lakh, and 30 percent above. Salaried taxpayers and pensioners deduct a standard ₹75,000 first, and the rebate under section 156 (the old section 87A) wipes out the tax for residents with taxable income up to ₹12 lakh, with marginal relief just above it: at ₹12.1 lakh you pay ₹10,000 plus cess, not ₹61,500. Budget 2026 did not change any of these numbers. Almost no other deduction is allowed.
The old regime keeps the familiar slabs of 5 percent above ₹2.5 lakh (₹3 lakh for residents aged 60 to 79, ₹5 lakh at 80 and above), 20 percent above ₹5 lakh and 30 percent above ₹10 lakh, a standard deduction of ₹50,000, the rebate up to ₹5 lakh of taxable income, and every deduction: section 80C, 80D, home loan interest, HRA, and the rest. It wins only when those deductions are large.
Both regimes add surcharge above ₹50 lakh and the 4 percent health and education cess, which the calculator includes. Surcharge is capped at 25 percent in the new regime, and the calculator applies marginal relief at each surcharge threshold. It does not model capital gains, income from more than one house property, arrears relief, or the clubbing and agricultural-income rules; where those apply, the answer needs a computation, not a calculator.
When the old regime still wins
The old regime only wins when deductions and exemptions are large, and the bar is higher than most people expect. For a resident salaried taxpayer below 60, the break-even (computed with this calculator) is about ₹6.9 lakh of deductions at a ₹13 lakh salary, ₹5.4 lakh at ₹15 lakh, ₹6.4 lakh at ₹18 lakh, ₹7.1 lakh at ₹20 lakh and about ₹8 lakh from ₹24 lakh to ₹50 lakh. Up to a ₹12.75 lakh salary the new regime always wins, because the rebate leaves no tax at all. A maxed section 80C, ₹2 lakh of home loan interest, a family health policy and meaningful HRA together can cross the line; one or two of them rarely do.
Salaried taxpayers can choose afresh each year when they file. Taxpayers with business or professional income who opt out of the new regime must file the prescribed form before the due date and get limited switches back, so their choice needs more care.
Worked examples, FY 2026-27
| Salary | Old-regime deductions | New regime tax | Old regime tax | Cheaper | Break-even deductions |
|---|---|---|---|---|---|
| ₹10 lakh | ₹1.5 lakh | ₹0 | ₹75,400 | New | None: new always wins |
| ₹13 lakh | ₹2 lakh | ₹26,000 | ₹1,32,600 | New | ₹6.9 lakh |
| ₹15 lakh | ₹6 lakh | ₹97,500 | ₹85,800 | Old | ₹5.4 lakh |
| ₹18 lakh | ₹3.75 lakh | ₹1,50,800 | ₹2,34,000 | New | ₹6.4 lakh |
| ₹30 lakh | ₹5 lakh | ₹4,75,800 | ₹5,69,400 | New | ₹8 lakh |
Resident, salaried, below 60, including 4% cess. Deductions are what you would claim in the old regime on top of its ₹50,000 standard deduction.
Frequently asked questions
Did Budget 2026 change the tax slabs for FY 2026-27?
No. The Finance Bill 2026 memorandum confirms the rates for tax year 2026-27 are the same as already enacted. The new regime slabs (section 202), the ₹75,000 and ₹50,000 standard deductions and the ₹12 lakh and ₹5 lakh rebate limits (section 156) all carry over from FY 2025-26. What changed is the law they sit in: the Income-tax Act, 2025 applies from 1 April 2026.
Which tax regime is better for FY 2026-27?
The new regime is cheaper for most people. The old regime wins only when total deductions and exemptions (80C, 80D, HRA, home loan interest, NPS) are large: roughly ₹5.4 lakh at a ₹15 lakh salary, ₹7.1 lakh at ₹20 lakh, and about ₹8 lakh at ₹24 lakh and above.
Is income up to 12 lakh tax-free in the new regime?
Yes, for resident individuals. The section 87A rebate (now section 156) of up to ₹60,000 cancels tax on income up to ₹12 lakh, so a salary of ₹12.75 lakh is tax-free after the ₹75,000 standard deduction. Special-rate income such as capital gains on shares is not covered.
Can I switch between the old and new regimes every year?
Salaried people without business income can choose afresh every year when filing the return. People with business or professional income get limited switches and must file the prescribed form before the return due date.
What is the standard deduction in each regime?
₹75,000 in the new regime and ₹50,000 in the old regime, for salary and pension income.
Which deductions are allowed in the new regime?
Very few: the standard deduction, the employer’s NPS contribution up to 14% of basic plus DA, and interest on a let-out property against its own rent. Section 80C, 80D, HRA, LTA and home loan interest on a self-occupied house are not allowed.
Read before you file.
Rebate under section 87A
How the rebate makes income up to ₹12 lakh tax-free, how marginal relief works just above it, and what it does not cover.
Read guide→GuideSection 80C deduction list 2026
Every item that counts toward the ₹1.5 lakh limit, the current small-savings rates, and when claiming 80C still beats the new regime.
Read guide→GuideNew Tax Regime Slabs for FY 2025-26 and FY 2026-27: Rates, the ₹12 Lakh Rebate, What You Can Still Deduct, and Worked Examples
Seven slabs, a ₹60,000 rebate that makes ₹12 lakh tax-free, marginal relief just above it, and the few deductions that survive. With worked examples.
Read guide→