'); w.document.close(); w.print(); } }; } if (typeof taxgstShareResult === 'undefined') { window.taxgstShareResult = function(id, type) { var el = document.getElementById(id); var text = el ? el.innerText : ''; var url = window.location.href; if (type === 'whatsapp') window.open('https://api.whatsapp.com/send?text=' + encodeURIComponent(text + ' ' + url)); else if (type === 'twitter') window.open('https://twitter.com/intent/tweet?text=' + encodeURIComponent(text) + '&url=' + encodeURIComponent(url)); }; } if (typeof taxgstCopyResult === 'undefined') { window.taxgstCopyResult = function(id) { var el = document.getElementById(id); if (el) { navigator.clipboard.writeText(el.innerText).then(function(){ alert('Copied!'); }); } }; } if (typeof taxgstCalcEMI === 'undefined') { window.taxgstCalcEMI = function(p, r, n) { if (!p || !r || !n) return 0; r = r > 1 ? r / 12 / 100 : r; return p * r * Math.pow(1+r,n) / (Math.pow(1+r,n) - 1); }; } Old Vs New Tax Regime
search
calculate Income Tax Calculator

Old vs New Tax Regime

Last updated: 2026-05-04
compare_arrows
folder_open Tax Calculator

Old vs New Tax Regime

Compare Tax Regimes to Find Which Saves More

IT Act 2025
lightbulb Important: The New Tax Regime is now the DEFAULT option under the Income Tax Act, 2025. You must explicitly opt for the Old Regime if you want to claim deductions like 80C, HRA, etc. Results update automatically as you type.

bar_chart Tax Regime Comparison: Enter Your Details

Compare the Old Tax Regime vs New Tax Regime for FY 2026-27 under the Income Tax Act, 2025. Enter your income and deductions to find out which regime saves you more tax. The computation updates live on the right.

account_balance_wallet Income Details

Interest, rental income, freelance income, etc.

edit_note Deductions (Only for Old Regime)

Note: These deductions are NOT available under the New Tax Regime

PPF, ELSS, LIC, PF, etc.
Self: ₹25K, Parents: ₹25K-50K
If you pay rent
Max ₹2L for self-occupied
Additional NPS contribution
Education loan, donations, savings interest, etc.

assessment Regime Comparison

description Old Regime

Gross Income₹0
Std. Deduction- ₹50,000
Deductions- ₹0
Taxable Income₹0
Tax Payable (incl. Cess)
₹0

new_releases New Regime

Gross Income₹0
Std. Deduction- ₹75,000
Other DeductionsNot Allowed
Taxable Income₹0
Tax Payable (incl. Cess)
₹0
account_balance_wallet You Save
₹0
by choosing New Regime

assignment Tax Slabs Comparison FY 2026-27

Old Regime

IncomeRate
Up to ₹2.5LNil
₹2.5L - ₹5L5%
₹5L - ₹10L20%
Above ₹10L30%

New Regime

IncomeRate
Up to ₹4LNil
₹4L - ₹8L5%
₹8L - ₹12L10%
₹12L - ₹16L15%
₹16L - ₹20L20%
₹20L - ₹24L25%
Above ₹24L30%

menu_book Old vs New Tax Regime: Complete Guide for FY 2026-27 Under Income Tax Act, 2025

Choosing between the old and new tax regime is one of the most important financial decisions you'll make each year. This calculator helps you compare both regimes side-by-side to find which one saves you more tax.

Key Differences

FeatureOld RegimeNew Regime
Standard Deduction₹50,000₹75,000
80C DeductionUp to ₹1.5 LakhNot Allowed
HRA ExemptionAvailableNot Allowed
Home Loan InterestUp to ₹2 LakhNot Allowed
Tax Slabs3 slabs (5%, 20%, 30%)7 slabs (5% to 30%)

When to Choose Old Regime?

  • You have high HRA exemption (paying significant rent)
  • You have home loan with interest above ₹2 Lakh
  • You maximize 80C investments (₹1.5 Lakh)
  • You have other deductions like 80D, 80E, 80G

When to Choose New Regime?

  • You don't have many deductions to claim
  • You live in own house (no HRA)
  • You prefer simplicity over tax planning
  • Your income is below ₹12 Lakh (zero tax with rebate under new regime)

Frequently Asked Questions about Tax Regime Comparison

Find answers to common questions about old vs new tax. Click on any question to expand the answer.

Under the Income Tax Act, 2025, the old tax regime allows you to claim various deductions and exemptions (like HRA, LTA, Section 80C, 80D). The new tax regime offers lower, concessional tax rates but requires you to forgo most of these deductions and exemptions.

It depends on your financial profile. If you make significant investments and claim deductions (e.g., home loan interest, insurance premiums), the old regime might be better. If you have fewer deductions, the lower rates of the new regime could be more beneficial. This calculator helps you make that comparison.

Yes, for Tax Year 2026-27 onwards under the Income Tax Act, 2025, the new tax regime is the default option for taxpayers. If you wish to opt for the old regime, you must explicitly do so when filing your income tax return.

Under the new regime of the Income Tax Act, 2025, you can still claim the standard deduction of ₹75,000 (for salaried individuals) and deductions for employer contributions to NPS under Section 80CCD(2). A tax rebate of ₹60,000 is available for taxable income below ₹12 lakh.

Under the Income Tax Act, 2025, the new regime slab rates for Tax Year 2026-27 are: 0-4L: Nil, 4-8L: 5%, 8-12L: 10%, 12-16L: 15%, 16-20L: 20%, 20-24L: 25%, Above 24L: 30%.

Salaried individuals without business income can choose between the old and new regimes each financial year. However, individuals with business or professional income have only one chance to switch back to the old regime after opting for the new one.

gavel Legal Disclaimer

This calculator is for informational and educational purposes only. Tax calculations are based on the Income Tax Act, 2025 (effective April 1, 2026) and may not reflect all individual circumstances. Tax slabs, rebate thresholds, and deduction limits are subject to change through government notifications. This tool should not be considered as tax advice. Always verify the latest tax rules at incometax.gov.in and consult a qualified Chartered Accountant for personalized guidance.

verified Source: Income Tax Department, Govt. of India • Last updated: 2026-05-04

update Latest Updates & Regulatory Changes

NEW

new_releases Income Tax Act, 2025 Effective

The new Income Tax Act, 2025 came into effect from April 1, 2026, replacing the Income Tax Act, 1961. New tax slabs, revised rebate u/s 87A (up to ₹60,000), and ₹75,000 standard deduction under the default New Regime are now applicable.

UPDATED

update New Tax Regime is Default

Under the Income Tax Act, 2025, the New Tax Regime is the default regime. Taxpayers must explicitly opt for the Old Regime. Salaried individuals with taxable income up to ₹12,75,000 pay zero tax under the New Regime.

IMPORTANT

priority_high Rebate u/s 87A Enhanced

Section 87A rebate increased to ₹60,000 (from ₹25,000) for taxable income up to ₹12,00,000 under the New Regime. This effectively makes salaried income up to ₹12,75,000 tax-free.

NEW

table_chart 7-Slab Structure Introduced

The New Regime now has 7 tax slabs (0%, 5%, 10%, 15%, 20%, 25%, 30%) instead of the previous 5-slab structure, providing more gradual tax progression.

description Terms, Rules & Regulations

gavel

Income Tax Act, 2025

All income tax calculations are governed by the Income Tax Act, 2025, effective from April 1, 2026. The Act replaces the Income Tax Act, 1961 and introduces revised tax slabs, enhanced rebates, and updated compliance requirements. Taxpayers must file returns as per the new provisions.

rule

Assessment Year & Financial Year

The Financial Year (FY) runs from April 1 to March 31. The Assessment Year (AY) is the year following the FY in which income is assessed and taxed. For FY 2026-27, the AY is 2027-28. ITR must be filed by the due date specified for the applicable AY.

policy

Tax Regime Selection

The New Tax Regime is the default regime under the Income Tax Act, 2025. Taxpayers wishing to opt for the Old Regime must explicitly select it while filing their ITR. Once opted out of the New Regime, salaried individuals can switch back only once. Business/professional taxpayers have limited switching options.

verified_user

Data Accuracy

Tax slabs, rebate limits, and deduction caps are sourced from the Income Tax Act, 2025 as notified by the Government of India. Surcharge rates, marginal relief provisions, and cess rates are applied as per statutory guidelines. Users are advised to cross-verify with official sources.

Share:

Related Tools

chat