Income Tax Calculator: New vs Old Regime
Compare your income tax under the new and old regimes side by side — with HRA, 80C, 80D, NPS and home-loan interest — and see which regime saves you more.
Salary
Old-regime deductions
HRA exemption worked out: ₹2,25,000
| Per year | New regime | Old regime |
|---|---|---|
| Gross salary | ₹15,00,000 | ₹15,00,000 |
| Total deductions | − ₹75,000 | − ₹4,52,400 |
| Taxable income | ₹14,25,000 | ₹10,47,600 |
| Tax on slabs | ₹93,750 | ₹1,26,780 |
| 87A rebate / marginal relief | ₹0 | ₹0 |
| Surcharge | ₹0 | ₹0 |
| Health & education cess (4%) | ₹3,750 | ₹5,071 |
| Total tax | ₹97,500 | ₹1,31,851 |
The old regime only wins if your deductions (beyond its ₹50,000 standard deduction) exceed about ₹5,43,748. Yours: ₹4,02,400.
FY 2026-27 (AY 2027-28), New Tax Regime; old regime for individuals below 60. Excludes employer NPS (80CCD(2)), other income, and marginal relief on surcharge. HRA exemption requires actual rent payment — keep receipts.
Quick answer
For FY 2026-27 the new regime is better for most salaried people: taxable income up to ₹12 lakh is tax-free and the standard deduction is ₹75,000. The old regime only wins when your deductions — HRA, 80C, 80D, NPS and home-loan interest — are large; this calculator shows the exact break-even for your salary.
New vs old regime at a glance
- Standard deduction: ₹75,000 (new) vs ₹50,000 (old).
- Section 87A rebate: tax-free up to ₹12 lakh taxable income (new) vs ₹5 lakh (old).
- Deductions: new regime allows almost none (employer NPS under 80CCD(2) is an exception); old regime allows HRA, 80C (₹1.5 lakh), 80D, 80CCD(1B) (₹50,000), home-loan interest under 24(b) (₹2 lakh) and professional tax.
- Slabs: new regime rises in ₹4 lakh steps to 30% above ₹24 lakh; old regime reaches 30% above ₹10 lakh.
How the comparison is calculated
Both regimes start from the same gross salary (if you enter CTC, employer PF is removed first). The new regime subtracts only the ₹75,000 standard deduction. The old regime subtracts the ₹50,000 standard deduction plus each deduction you enter, capped at its legal limit.
HRA exemption is the least of: HRA received, rent paid minus 10% of basic pay, and 50% of basic (metro) or 40% (non-metro). Tax is then computed on each regime’s slabs, with the 87A rebate, marginal relief (new regime), surcharge above ₹50 lakh and 4% cess.
Who should still consider the old regime?
Typically people paying high rent in a metro (large HRA exemption) who also use the full ₹1.5 lakh 80C limit, pay health insurance for parents, and have a home loan on a self-occupied house. If your total deductions are below the break-even figure shown above the table, stay with the new regime.
Salaried taxpayers can choose a regime every year when filing their return, whatever they declared to their employer for TDS. People with business income can switch back to the old regime only once.
Reference tables & worked examples
| Taxable income | Rate |
|---|---|
| ₹0 – ₹2,50,000 | Nil |
| ₹2,50,000 – ₹5,00,000 | 5% |
| ₹5,00,000 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
| Taxable income | Rate |
|---|---|
| ₹0 – ₹4,00,000 | Nil |
| ₹4,00,000 – ₹8,00,000 | 5% |
| ₹8,00,000 – ₹12,00,000 | 10% |
| ₹12,00,000 – ₹16,00,000 | 15% |
| ₹16,00,000 – ₹20,00,000 | 20% |
| ₹20,00,000 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
| Gross salary | New regime | Old: no deductions | Old: HRA ₹2L + 80C + 80D | Old: + home loan ₹2L + NPS ₹50k |
|---|---|---|---|---|
| ₹8,00,000 | ₹0 | ₹65,000 | ₹0 | ₹0 |
| ₹12,00,000 | ₹0 | ₹1,63,800 | ₹69,701 | ₹17,701 |
| ₹15,00,000 | ₹97,500 | ₹2,57,400 | ₹1,39,651 | ₹80,101 |
| ₹20,00,000 | ₹1,92,400 | ₹4,13,400 | ₹2,95,651 | ₹2,17,651 |
| ₹30,00,000 | ₹4,75,800 | ₹7,25,400 | ₹6,07,651 | ₹5,29,651 |
Frequently asked questions
Which tax regime is better for FY 2026-27?
For most salaried employees the new regime, because income up to ₹12 lakh is tax-free and slabs are lower. The old regime wins only when total deductions are large — use the break-even figure in the calculator.
Is the new regime the default?
Yes. Unless you opt for the old regime, your employer deducts TDS and your return is processed under the new regime.
Can I switch between regimes every year?
Salaried individuals without business income can choose either regime each year while filing their return. Those with business or professional income can switch back to the old regime only once.
Can I claim HRA in the new regime?
No. HRA exemption, 80C, 80D, 80CCD(1B) and home-loan interest on a self-occupied property are available only in the old regime.
What is the old-regime 87A rebate?
If taxable income is ₹5 lakh or less, a rebate of up to ₹12,500 makes tax zero under the old regime. Under the new regime the limit is ₹12 lakh (rebate up to ₹60,000).
How is HRA exemption calculated?
It is the lowest of HRA received, rent paid minus 10% of basic salary, and 50% of basic for metro cities (Delhi, Mumbai, Kolkata, Chennai) or 40% elsewhere.
Is employer NPS contribution deductible in the new regime?
Yes. Employer contribution under Section 80CCD(2) is allowed in both regimes (up to 14% of basic + DA in the new regime and 10% in the old). This calculator does not include it.
Sources
Estimates for general information only — not tax, legal or financial advice. Check your payslip, employer or a qualified adviser before acting.
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