Reviewed by Finin2min Editorial Desk · Last Reviewed 12 September 2026
Compare AY 2026–27 tax under the old and new regimes using salary, standard deduction, deductions, surcharge and rebate.
2-minute answer
Old versus new tax regime calculator for AY 2026-27 with current slabs, standard deduction and section 87A rebate.
Current-law note: Reviewed on 12 September 2026. Check any later amendment, notification, circular, deadline or portal instruction before taking action.
How to use this page
Use the page as a decision tool: keep inputs on the same basis, make assumptions explicit and test a downside scenario before relying on the output.
Practical checklist
Use dated statements or contracts rather than rough estimates where possible.
Keep monthly/annual and pre-tax/post-tax units consistent.
Test at least one conservative scenario.
Record the assumption that most changes the result.
Reviewed: 12 September 2026. The applicable statute, rule, notification, order or official filing instruction prevails.
Enter income and deductions
Special-rate capital gains, lottery, VDA, AMT and business opt-out restrictions are outside this comparison.
Old-regime tax
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New-regime tax
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Measure
Result
Lower-tax regime
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Annual difference
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Old/new taxable income
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Income-tax Act, 2025 note: The Section 87A rebate discussed above becomes Section 156 under the Income-tax Act, 2025, effective FY 2026-27. For FY 2025-26 and earlier, Section 87A remains the correct citation — the rebate rules themselves are unaffected by the renumbering. Section numbering note: This page uses Income-tax Act, 1961 terminology for AY 2026-27 references. If applying the Income-tax Act, 2025 for a later year, verify the corresponding provision and exact wording from the official Gazette or Income Tax Department before citing a section number.
How This Is Calculated
This calculator computes your tax liability under both the FY 2025-26 new regime slabs (₹0-4L nil, ₹4-8L 5%, ₹8-12L 10%, ₹12-16L 15%, ₹16-20L 20%, ₹20-24L 25%, above ₹24L 30%, with ₹75,000 standard deduction and Section 87A rebate up to ₹12L net income) and the old regime (with your entered deductions — 80C, HRA, 80D, NPS, home loan interest, etc.), then shows which regime results in lower tax for your specific numbers.
Frequently Asked Questions
Which tax regime is better — old or new? ▼
It depends entirely on how much you can claim in deductions under the old regime. As a rough guide, if your eligible deductions (80C + HRA + 80D + NPS + home loan interest, etc.) are modest, the new regime usually results in lower tax because of its wider slabs and the Section 87A rebate up to ₹12 lakh net income. Enter your actual numbers above for a precise comparison rather than relying on a rule of thumb.
Can I switch between old and new regime every year? ▼
Salaried individuals without business or professional income can choose their regime freely each year when filing their ITR. Those with business/professional income have more restricted switching rules and should consult a Chartered Accountant before changing regimes.
What deductions are not available under the new regime? ▼
Most common deductions are unavailable under the new regime, including Section 80C (PPF, ELSS, life insurance), HRA exemption, home loan interest on a self-occupied property (Section 24), and Section 80D health insurance premiums. The standard deduction of ₹75,000 for salaried employees and the employer's NPS contribution under 80CCD(2) remain available under the new regime.
Is income up to ₹12 lakh really tax-free under the new regime? ▼
For salaried individuals, gross income up to ₹12.75 lakh (₹12 lakh plus the ₹75,000 standard deduction) results in zero tax under the new regime for FY 2025-26, because of the Section 87A rebate. This applies to regular slab income only — capital gains and other specially-taxed income are computed separately and are not covered by this rebate.
Source and review trail
Use the current official instrument, portal or regulator publication before acting. This panel separates the category authority from page-specific references.
Finin2min current-source control — AY 2026-27 boundary
Reviewed: 22 August 2026. This module adds a source/currentness/evidence control without changing the existing page identity or functionality.
This page is explicitly an AY 2026-27 / FY 2025-26 calculator and therefore uses the Income-tax Act, 1961 framework. Do not silently extend its section numbers or logic to Tax Year 2026-27 under the Income-tax Act, 2025. This merge-only batch must not alter the calculator logic.
Practical verification checklist
Keep AY 2026-27 selected.
Exclude special-rate items that the page says are outside scope.
Use a separate current-year engine for Tax Year 2026-27 onward.
Use the controlling statute, notified rule/instrument, official portal and later authoritative treatment for the relevant date. This page remains an educational/professional reference.
Educational calculator · Reviewed 12 September 2026 · Official law, portal data and professional judgement prevail.
Methodology
Editorial policy
Legal and disclaimer
Methodology, assumptions and sources
Scope: Compares total tax liability under the old and new tax regimes for the same income and deduction profile, to help the taxpayer choose the more beneficial regime for the assessment year selected.
Calculation logic
Compute tax under the new regime: apply new-regime slab rates, the standard deduction, and only the limited deductions the new regime permits (e.g., employer's NPS contribution under 80CCD(2)), then apply the new regime's rebate/surcharge/cess.
Compute tax under the old regime: apply old-regime slab rates, the standard deduction, and all Chapter VI-A deductions entered by the user (80C, 80D, HRA, home loan interest, etc.), then apply the old regime's rebate/surcharge/cess.
Compare the two final tax figures and show the regime with lower liability, along with the deduction amount at which the two regimes produce equal tax (the 'break-even' deduction level), to help the user see how much old-regime deduction they would need to make the old regime worthwhile.
Inputs and assumptions
Salaried employees can switch between regimes each year when filing their return (subject to employer TDS-declaration timing); taxpayers with business/professional income have more restricted switching rights under the applicable provisions, which the calculator flags where business income is indicated.
The default regime (applied if no explicit election is made) is the new regime — the calculator computes both regardless of default, since the comparison itself is the tool's purpose.
Exclusions and edge cases
Does not itself file the regime election with the employer or on the return — the user must separately communicate their choice via Form 10-IEA (where required for business-income taxpayers) or through the ITR filing process.
Assumes all deduction inputs entered are actually eligible and documented — the calculator computes the comparison based on the figures entered, not an independent verification of deduction eligibility.