Old vs New Tax Regime
Old vs New Tax Regime Calculator
Which Tax Regime Saves You More Money?
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.
Income Details
Deductions (Only for Old Regime)
Note: These deductions are NOT available under the New Tax Regime
Regime Comparison
Old Regime
New Regime
Tax Slabs Comparison FY 2026-27
Old Regime
| Income | Rate |
|---|---|
| Up to ₹2.5L | Nil |
| ₹2.5L - ₹5L | 5% |
| ₹5L - ₹10L | 20% |
| Above ₹10L | 30% |
New Regime
| Income | Rate |
|---|---|
| Up to ₹4L | Nil |
| ₹4L - ₹8L | 5% |
| ₹8L - ₹12L | 10% |
| ₹12L - ₹16L | 15% |
| ₹16L - ₹20L | 20% |
| ₹20L - ₹24L | 25% |
| Above ₹24L | 30% |
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
| Feature | Old Regime | New Regime |
|---|---|---|
| Standard Deduction | ₹50,000 | ₹75,000 |
| 80C Deduction | Up to ₹1.5 Lakh | Not Allowed |
| HRA Exemption | Available | Not Allowed |
| Home Loan Interest | Up to ₹2 Lakh | Not Allowed |
| Tax Slabs | 3 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. These FAQs are designed to help you understand key concepts and make informed decisions.
1. What is the main difference between the old and new tax regimes?
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.
2. Which tax regime is better for me?
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.
3. Is the new tax regime the default option?
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.
4. What deductions are still allowed under the new tax regime?
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.
5. What are the slab rates under the New Tax Regime for FY 2026-27?
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%.
6. Can I switch between the two regimes every year?
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.
This tax regime comparison calculator is for informational and educational purposes only. Tax slabs and rules are as per the Income Tax Act, 2025 and may change with budget announcements. The calculations are simplified and may not cover all scenarios such as surcharge, special incomes, or specific exemptions. Always verify with the official Income Tax portal (incometax.gov.in) for the latest rules. This tool should not be considered as tax advice. Consult a qualified Chartered Accountant or tax professional for personalized tax planning.
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