Income Tax Calculator India FY 2026-27: New vs Old Regime
FY 2026-27 Tax Slabs — New Regime vs Old Regime
Budget 2025 made the New Regime significantly more attractive. The 87A rebate was extended to income up to ₹12 lakhs (from ₹7L earlier). This means a salaried employee with gross income of ₹12.75 lakhs (after ₹75K standard deduction = ₹12L taxable) pays ZERO tax under New Regime. This is a massive shift — previously this person would have paid ₹80,000+ in tax.
Exact Tax Comparison — New vs Old Regime by Salary
Assuming standard salary structure for Old Regime: ₹1.5L 80C + ₹25K 80D + HRA exemption ₹1L + Standard Deduction ₹75K. Total deductions = ₹3.5L:
| Annual CTC | New Regime Tax | Old Regime Tax | Better Option | Saving |
|---|---|---|---|---|
| ₹7 Lakhs | ₹0 (rebate) | ₹0 (rebate) | Same | — |
| ₹10 Lakhs | ₹54,600 | ₹28,600 | Old Regime | Save ₹26,000 |
| ₹12 Lakhs | ₹0 (rebate) | ₹72,800 | New Regime | Save ₹72,800 |
| ₹12.75 Lakhs | ₹0 | ₹83,200 | New Regime | Save ₹83,200 |
| ₹15 Lakhs | ₹1,30,000 | ₹1,12,320 | Old Regime | Save ₹17,680 |
| ₹20 Lakhs | ₹2,10,000 | ₹2,34,000 | New Regime | Save ₹24,000 |
| ₹25 Lakhs | ₹3,37,500 | ₹3,82,200 | New Regime | Save ₹44,700 |
| ₹30 Lakhs | ₹4,87,500 | ₹5,46,000 | New Regime | Save ₹58,500 |
Between ₹12L and ₹15L salary there's a complex crossover. At exactly ₹12L New Regime is zero tax. At ₹13L New Regime is ₹20,000, Old Regime might still be lower with maximum deductions. At ₹15L Old Regime wins back. This salary band needs a precise calculation — not a rule of thumb. Use the calculator to get your exact number.
Calculate your exact income tax
Enter your salary, HRA, 80C investments and other deductions — see New vs Old regime tax comparison instantly.
Open Income Tax Calculator →Old Regime Deductions — What You Can Claim
Old Regime allows these deductions that New Regime does NOT:
| Deduction | Section | Max Limit | What Qualifies |
|---|---|---|---|
| Standard Deduction | 16(ia) | ₹75,000 | Available in BOTH regimes |
| PPF / ELSS / LIC / Home Loan Principal | 80C | ₹1,50,000 | Old Regime only |
| Health Insurance | 80D | ₹25,000–₹1L | Old Regime only |
| HRA Exemption | 10(13A) | Calculated | Old Regime only |
| Home Loan Interest | 24(b) | ₹2,00,000 | Old Regime only |
| NPS Extra Deduction | 80CCD(1B) | ₹50,000 | Old Regime only |
| Employer NPS Contribution | 80CCD(2) | 10–14% of Basic | Available in BOTH regimes |
The Decision Rule — Which Regime to Choose
Add up all your Old Regime deductions:
- Standard Deduction: ₹75,000 (available in both — don't count this as a differentiator)
- 80C investments: up to ₹1,50,000
- 80D health insurance: up to ₹25,000–₹50,000
- HRA exemption: depends on rent and city
- Home loan interest: up to ₹2,00,000
- NPS 80CCD(1B): up to ₹50,000
If your total Old Regime deductions (excluding standard deduction) exceed ₹3.75 lakhs — Old Regime wins at most salary levels below ₹20L. If your deductions are below ₹2L — New Regime almost always wins. The ₹3.75L threshold is where the two regimes are roughly equal. Calculate your exact deductions and use the CalVerse tax calculator to see the precise difference for your salary.
New Regime — What's Still Available
Even in New Regime, these benefits survive:
- Standard Deduction ₹75,000 — available in both regimes
- Employer NPS contribution under 80CCD(2) — up to 14% of basic for govt employees
- HRA if employer provides it as part of salary structure — partially available
- Leave Travel Allowance (LTA) — not available
- Section 87A rebate up to ₹12L taxable income — zero tax
- Basic exemption limit ₹3L (vs ₹2.5L in Old Regime)