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Loading PaisaToolsOld 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; 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. Marginal relief, PF and professional tax are excluded.