Old vs new tax regime calculator — tax year 2026–27
Run the same salary through both tax year 2026–27 regimes and see which one costs less — with HRA exemption, 80C-type deductions, rebates, surcharge and cess all applied.
| Breakdown | Value |
|---|
Estimate. The method and sources are on this page — check them against your own case before you act.
How it is calculated
The two regimes use different slabs, different deductions and different rebates. The only honest comparison runs the same income through both and adds cess and surcharge on each.
New-regime tax on (salary − Rs 75,000) · Old-regime tax on (salary − Rs 50,000 − HRA exemption − other deductions) · compare the final tax
Set the two taxable incomes
The new regime allows a Rs 75,000 standard deduction but no HRA or 80C-type deductions. The old regime allows Rs 50,000 plus the HRA exemption and the deductions you enter.
Apply each slab table
The new regime starts at Rs 4,00,000 and peaks at 30% above Rs 24,00,000. The old regime starts at Rs 2,50,000, jumps to 20% above Rs 5,00,000 and 30% above Rs 10,00,000.
Compare the final tax
Each side gets its section 156 rebate, surcharge with marginal relief and 4% cess. The lower final number is the better regime for this income, and the difference is your yearly saving.
Old vs new slab tables — tax year 2026–27
| Taxable income | New regime | Old regime |
|---|---|---|
| Up to Rs 2,50,000 | Nil | Nil |
| Rs 2,50,001 – Rs 4,00,000 | Nil | 5% above Rs 2,50,000 |
| Rs 4,00,001 – Rs 5,00,000 | 5% | 5% |
| Rs 5,00,001 – Rs 8,00,000 | 5% | 20% above Rs 5,00,000 |
| Rs 8,00,001 – Rs 10,00,000 | 10% | 20% |
| Rs 10,00,001 – Rs 12,00,000 | 10% | 30% above Rs 10,00,000 |
| Rs 12,00,001 – Rs 16,00,000 | 15% | 30% |
| Rs 16,00,001 – Rs 20,00,000 | 20% | 30% |
| Rs 20,00,001 – Rs 24,00,000 | 25% | 30% |
| Above Rs 24,00,000 | 30% | 30% |
| Standard deduction | Rs 75,000 | Rs 50,000 |
| section 156 rebate | Up to Rs 60,000, income up to Rs 12,00,000 | Up to Rs 12,500, income up to Rs 5,00,000 |
What most pages get wrong
The new regime is the default choice
You must opt for the old regime to claim HRA, 80C, 80D and home-loan interest. Salaried taxpayers choose through their employer's declaration each year.
Deductions decide whether the old regime catches up
The new regime's lower rates are worth a lot. Only a large deduction stack — HRA, 80C, home-loan interest, NPS — usually closes the gap at middle incomes. The calculator shows the exact break-even for your salary: raise the deduction input until the old-regime tax falls below the new-regime tax.
The rebate lines are not the same
The new regime gives up to Rs 60,000 of rebate at incomes up to Rs 12,00,000. The old regime gives Rs 12,500 at incomes up to Rs 5,00,000. The new rebate is much more valuable.
Surcharge is capped at 25% in the new regime
Above Rs 2 crore the new regime surcharge tops out at 25%, while the old regime can reach 37% above Rs 5 crore. Marginal relief applies at every threshold on both sides.
Frequently asked questions
Which tax regime is better for tax year 2026–27?+
How much deduction makes the old regime better?+
Can I switch regimes every year?+
Does the old regime really allow HRA and 80C?+
Is the standard deduction the same in both regimes?+
Are surcharge and cess included in the comparison?+
Does this calculator handle capital gains?+
Sources, dates and a changelog.
Every number this calculator uses is either an input you control or a value from the sources below. The formula is compiled and tested at build time, so the page cannot ship with a broken calculation.
Sources
This page
- Last verified: 30 October 2026
- Next review: 30 April 2027
- Vertical: Salary & Tax
- Build tests: 4 passed
- Changelog: 2 entries
How we handle errors
- Spotted a mistake? Report it — we correct and log it.
- Corrections appear in the changelog below.
- Read the methodology and the disclaimer.