Income Tax Calculator
Old vs New regime, side by side (FY 2026-27)
Reviewed by the PaisaTools Editorial Team · Last reviewed September 2026 · Applicable to FY 2026-27 (AY 2027-28)
How to use: Enter your income and deductions — we compute tax under both regimes and mark the cheaper one.
Example₹15L income, ₹1.5L 80C → compare old vs new in one view
Total salary / income before any deductions
Old-regime deductions
These lower tax only in the old regime. The new regime ignores them (it gives just the ₹75,000 standard deduction).
Capped at ₹1,50,000
Self + family + parents premiums
Use the HRA Calculator for the exact figure
Self-occupied cap ₹2,00,000
Extra ₹50,000 over 80C
Lower tax — New regime
₹97,500
You save vs the old regime
₹1,05,300
Other regime would cost
₹2,02,800
Old vs New — side by side
The new regime saves you ₹1,05,300 this year. Salaried? You can pick the cheaper regime afresh each year.
FY 2026-27 (AY 2027-28). Excludes PF and professional tax (they vary by employer/state). Surcharge over ₹50L is applied. The §87A marginal relief just above ₹12L taxable is applied; surcharge marginal relief is not modelled.
This compares your income tax under both regimes for FY 2026-27 (AY 2027-28) and tells you which one costs less. The new regime uses wide slabs, a ₹75,000 standard deduction and the §87A rebate (nil tax up to ₹12 lakh taxable) but allows almost no other deductions. The old regime has higher rates but lets you subtract 80C, 80D, HRA, home-loan interest, NPS and more before tax.
Enter your deductions on the left — they apply only to the old regime — and the side-by-side table shows the taxable income, rebate, cess and total tax for each, with the cheaper column marked. PF and professional tax are left out so the tax figure stays exact.
New-regime slabs (FY 2026-27): nil up to ₹4 lakh, then 5% (₹4–8L), 10% (₹8–12L), 15% (₹12–16L), 20% (₹16–20L), 25% (₹20–24L) and 30% above ₹24 lakh — plus 4% cess. The old regime charges nil up to ₹2.5 lakh, 5% to ₹5 lakh, 20% to ₹10 lakh and 30% above, but lets you deduct first.
Filing for AY 2027-28? The return is due by 31 July 2026 for most salaried taxpayers — see our ITR filing 2026 guide for the documents, the right ITR form and common mistakes.
Tax is computed from the FY 2026-27 slabs for both regimes, the standard deductions (₹75,000 new / ₹50,000 old), the age-based basic exemption, the Section 87A rebate (nil tax up to ₹12 lakh taxable in the new regime, ₹5 lakh in the old), 4% health & education cess, and surcharge above ₹50 lakh — as specified in the Income Tax Act and notified by the Income Tax Department, Government of India. The §87A marginal relief just above ₹12 lakh is applied; surcharge marginal relief, PF and professional tax are excluded.
- Simplifies surcharge, cess and marginal-relief edge cases.
- Doesn't cover every deduction, or business/capital-gains income.
- Standard salaried scenarios — confirm complex cases with a professional.
- Which regime should I choose for FY 2026-27?
- Enter your income and deductions above — the calculator computes tax both ways and marks the cheaper one. As a rule, the new regime wins unless your total deductions (80C [section 123 of the new Income-tax Act, 2025] + 80D [section 126 of the new Income-tax Act, 2025] + HRA + home-loan interest + NPS) cross roughly ₹4–4.5 lakh, which usually means significant rent or a home loan.
- What income is tax-free under the new regime?
- Up to ₹12 lakh taxable income pays zero tax thanks to the Section 87A (section 156 of the new Income-tax Act, 2025) rebate. Adding the ₹75,000 standard deduction, a salary up to ₹12.75 lakh pays no income tax at all under the new regime.
- What deductions does the old regime allow?
- Section 80C (up to ₹1.5 lakh — PPF, ELSS, EPF, LIC, home-loan principal), 80D health insurance, HRA exemption, 24(b) (section 22 of the new Income-tax Act, 2025) home-loan interest (up to ₹2 lakh self-occupied), 80CCD(1B) (section 124 of the new Income-tax Act, 2025) NPS (extra ₹50,000) and others. The new regime ignores these and gives only the ₹75,000 standard deduction.
- Can I switch between the old and new regime?
- Yes — salaried taxpayers can choose afresh each financial year. Those with business income face more restrictions. Re-check every year, since a new home loan, rent or NPS contribution can flip which regime is cheaper.
- What are the income tax slabs for FY 2026-27 (new regime)?
- Up to ₹4 lakh — nil; ₹4–8 lakh — 5%; ₹8–12 lakh — 10%; ₹12–16 lakh — 15%; ₹16–20 lakh — 20%; ₹20–24 lakh — 25%; above ₹24 lakh — 30%. Plus 4% health & education cess on the tax. The ₹75,000 standard deduction and the §87A rebate (nil tax up to ₹12 lakh taxable) apply on top.
- How much income tax on ₹15 lakh salary under the new regime?
- On a ₹15 lakh salary, after the ₹75,000 standard deduction the taxable income is ₹14.25 lakh — the new-regime tax works out to about ₹97,500 (including 4% cess). The old regime would usually cost more here unless your deductions are very large. Enter ₹15,00,000 above to see your exact figure both ways.
- What is the standard deduction for FY 2026-27?
- ₹75,000 under the new regime and ₹50,000 under the old regime, for salaried taxpayers and pensioners. It's applied automatically before tax — you don't need to claim or invest anything to get it.
- Does this include PF, professional tax or surcharge?
- PF and professional tax are excluded — they vary by employer and state, and folding in guesses would make the tax figure wrong. Surcharge above ₹50 lakh taxable income is applied; surcharge marginal relief at that threshold is not modelled. The new regime's §87A marginal relief just above ₹12 lakh taxable is applied.
Related guides
- Old vs New Tax Regime — which one wins for you?A side-by-side walkthrough of the FY 2026-27 slabs, with the break-even where the regimes flip.
- ITR Filing 2026: deadline, documents & which regime to pickMissed the 31 July deadline? What a belated FY 2025-26 return costs you, the documents to keep ready, the right ITR form, and the regime decision.
- How to save tax on your salary (FY 2026-27)The deductions that actually move the needle, in priority order — and how to decide between the old and new regime first.
Writing about this? Put the calculator in your article
Free for any site. One line of HTML, no signup, no ads, and we keep the rates and rules current so you never have to.
Related tools
All Tax & Salary tools →EPF Withdrawal Tax Calculator
What a PF withdrawal before five years actually costs — the three heads it splits across, and why TDS is not the tax
Salary Decoder
One CTC in — in-hand, tax regime, SIP, rent & loan headroom out
Which ITR Form?
Answer a few questions, get the right ITR form and the rule behind it