Income tax calculator FY 2026-27: old vs new regime
Enter your salary and the deductions you actually claim. The calculator works out both regimes side by side, including surcharge and 4% cess, and shows the deduction level where the old regime starts to win.
The number that decides it: your break-even deduction
The new regime has lower slab rates. The old regime has higher rates but lets you subtract deductions. So for every income there is one level of deductions where both cost exactly the same. Claim more than that and the old regime wins. Claim less and the new regime wins.
Most salaried people claim ₹1.5 lakh under 80C and ₹25,000 under 80D, about ₹1.75 lakh in all. As the table shows, that is rarely enough on its own. The old regime usually needs a large HRA exemption or home loan interest on top.
| Salary | Tax, new regime | Deductions needed for old to win |
|---|---|---|
| ₹10,00,000 | ₹0 | Never (new is ₹0) |
| ₹12,75,000 | ₹0 | Never (new is ₹0) |
| ₹15,00,000 | ₹97,500 | ₹5,43,800 |
| ₹18,00,000 | ₹1,50,800 | ₹6,41,700 |
| ₹20,00,000 | ₹1,92,400 | ₹7,08,400 |
| ₹25,00,000 | ₹3,19,800 | ₹8,00,000 |
| ₹30,00,000 | ₹4,75,800 | ₹8,00,000 |
| ₹40,00,000 | ₹7,87,800 | ₹8,00,000 |
| ₹50,00,000 | ₹10,99,800 | ₹8,00,000 |
New regime slabs, FY 2026-27
| Taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 to ₹8,00,000 | 5% |
| ₹8,00,001 to ₹12,00,000 | 10% |
| ₹12,00,001 to ₹16,00,000 | 15% |
| ₹16,00,001 to ₹20,00,000 | 20% |
| ₹20,00,001 to ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Rebate makes tax nil when taxable income is ₹12 lakh or less, with marginal relief just above that. Standard deduction for salaried people and pensioners is ₹75,000.
Old regime slabs, FY 2026-27
| Taxable income | Below 60 | 60 to 79 | 80 and above |
|---|---|---|---|
| Up to ₹2,50,000 | Nil | Nil | Nil |
| ₹2,50,001 to ₹3,00,000 | 5% | Nil | Nil |
| ₹3,00,001 to ₹5,00,000 | 5% | 5% | Nil |
| ₹5,00,001 to ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
Rebate of up to ₹12,500 makes tax nil when taxable income is ₹5 lakh or less. Standard deduction is ₹50,000. Both regimes add surcharge above ₹50 lakh (with marginal relief) and 4% health and education cess. Surcharge is capped at 25% in the new regime and goes up to 37% in the old.
Questions people ask
Which tax regime is better for FY 2026-27?
It depends on your deductions. With few deductions, the new regime almost always costs less. The old regime wins only when your HRA exemption, 80C, 80D, home loan interest and similar deductions cross the break-even figure for your income, shown by this calculator and in the table above.
Is income up to ₹12 lakh tax-free in the new regime?
Yes, if your taxable income is ₹12 lakh or less the rebate brings the tax to zero. For salaried people the ₹75,000 standard deduction means a salary of up to ₹12.75 lakh pays no tax under the new regime.
Did Budget 2026 change the tax slabs?
No. Budget 2026 kept the slabs from Budget 2025 for both regimes. The bigger change is that the Income Tax Act 2025 replaced the 1961 Act from 1 April 2026, which renumbers sections and replaces the assessment year with the tax year.
Can I switch between the regimes every year?
Salaried taxpayers without business income can choose either regime each year when filing their return. People with business or professional income have limited switching, so check the rules before opting out of the new regime.
What deductions are allowed in the new regime?
Very few. The standard deduction of ₹75,000 for salaried people and the employer contribution to NPS are the main ones. Most others, including 80C, 80D, HRA and home loan interest on a self-occupied house, apply only in the old regime.