Income Tax Calculator — Old vs New Regime (2026)
Compare your tax liability under both regimes for FY 2026-27 (AY 2027-28) and find out which one saves you more.
Income Details
Age affects the old regime exemption limit only — the new regime is the same for everyone.
Deductions (old regime only)
Not sure? Use the HRA Calculator to work out the exact exempt amount.
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New Tax Regime
Saves you ₹1,17,000/year compared to the old regime.
Estimate Only
This calculator does not apply surcharge marginal relief and assumes salaried income with no other exemptions beyond those listed. For incomes above ₹50 lakh or complex situations (capital gains, business income, multiple deductions), consult a chartered accountant before filing.
New Tax Regime Slabs — FY 2026-27 (AY 2027-28)
The new regime (Section 115BAC) is the default regime unless you opt for the old one. Budget 2026 made no changes to these slabs versus FY 2025-26. Standard deduction of ₹75,000 applies for salaried individuals and pensioners.
| Taxable Income | Rate |
|---|---|
| ₹0 – ₹4,00,000 | Nil |
| ₹4,00,000 – ₹8,00,000 | 5% |
| ₹8,00,000 – ₹12,00,000 | 10% |
| ₹12,00,000 – ₹16,00,000 | 15% |
| ₹16,00,000 – ₹20,00,000 | 20% |
| ₹20,00,000 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Section 87A rebate: taxable income up to ₹12,00,000 gets a rebate of up to ₹60,000 — making tax effectively nil up to that point (₹12.75 lakh gross salary, after the ₹75,000 standard deduction).
Old Tax Regime Slabs — FY 2026-27
The old regime keeps its full range of deductions (80C, HRA, home loan interest, etc.) but at a lower basic exemption. Standard deduction of ₹50,000 applies for salaried individuals and pensioners. The exemption limit depends on age.
| Taxable Income | Below 60 | 60–80 (Senior) | Above 80 (Super Senior) |
|---|---|---|---|
| Up to ₹2,50,000 | Nil | Nil | Nil |
| ₹2,50,000 – ₹3,00,000 | 5% | Nil | Nil |
| ₹3,00,000 – ₹5,00,000 | 5% | 5% | Nil |
| ₹5,00,000 – ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
Section 87A rebate: taxable income up to ₹5,00,000 gets a rebate of up to ₹12,500 — making tax effectively nil up to that point, regardless of age.
Surcharge and Cess
| Taxable Income | Old Regime | New Regime |
|---|---|---|
| ₹50 lakh – ₹1 crore | 10% | 10% |
| ₹1 crore – ₹2 crore | 15% | 15% |
| ₹2 crore – ₹5 crore | 25% | 25% (capped) |
| Above ₹5 crore | 37% | 25% (capped) |
A 4% Health & Education Cess applies on (tax + surcharge) under both regimes. The new regime caps surcharge at 25% — it never reaches the old regime's 37% top rate, even above ₹5 crore.
Worked Example — ₹12,00,000 Salary
New Regime
- Standard Deduction₹75,000
- Taxable Income₹11,25,000
- Tax (before rebate)₹52,500
- Rebate (Sec 87A)− ₹52,500
- Total Tax Payable₹0
Old Regime (with ₹1.5L 80C)
- Standard Deduction + 80C₹2,00,000
- Taxable Income₹10,00,000
- Tax (before rebate)₹1,12,500
- Rebate (Sec 87A)₹0 (income > ₹5L)
- Total Tax Payable₹1,17,000
At ₹12 lakh gross salary with just the standard ₹1.5 lakh Section 80C investment, the new regime results in zero tax thanks to the ₹12 lakh Section 87A rebate threshold, while the old regime still owes ₹1,17,000. Old regime only wins once your total deductions (80C + HRA + home loan interest + NPS) are large enough to push taxable income below ₹5 lakh, or are otherwise unusually large — use the calculator above with your own numbers rather than relying on rules of thumb.
Frequently Asked Questions — Income Tax Calculator
Which tax regime should I choose — old or new?
Is the new tax regime the default now?
Can I switch between old and new regime every year?
Is HRA exemption available under the new tax regime?
What is the Section 87A rebate?
Does this calculator account for surcharge marginal relief?
Content by Satyapal Khakhal, Founder, gpaisa.in | Updated for FY 2026-27: July 2026
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