Old vs New Tax Regime Comparator
Enter your salary and total deductions to get a definitive verdict: old regime or new regime for FY 2026-27?
Runs entirely in your browser — your numbers never leave this page.
How it works
Every salaried Indian now faces the same annual question: old regime or new regime? The answer is pure arithmetic:
- New regime (default): lower slab rates (0–4L nil, up to 30% above 24L), Rs 75,000 standard deduction, almost no other deductions. Income up to Rs 12L is effectively tax-free via the 87A rebate.
- Old regime: higher rates (0–2.5L nil, 20% at 5–10L, 30% above 10L) but keeps 80C (1.5L), 80D, HRA, home-loan interest, and Rs 50,000 standard deduction.
- The tipping point: with minimal deductions the new regime wins by a mile. You typically need Rs 3–4L+ of genuine deductions for old to fight back.
- Common trap: counting deductions you wouldn't actually make (like "planned ELSS") to justify the old regime — only count real money.
- It changes yearly: a promotion can flip the verdict. Re-run this every appraisal season.
Frequently asked questions
Which is better, old or new tax regime?
Depends on your deductions. With under ~Rs 3-4L of real deductions, the new regime usually wins. Above that, the old regime can win. Run your numbers — don't guess.
What are the new regime slabs for FY 2026-27?
0–4L nil, 4–8L 5%, 8–12L 10%, 12–16L 15%, 16–20L 20%, 20–24L 25%, above 24L 30%, with Rs 75,000 standard deduction.
Is the new regime the default?
Yes — since FY 2023-24 the new regime is the default. You must explicitly opt for the old regime when filing.
Can I switch regimes every year?
Salaried individuals can switch every year. Business owners with presumptive income face restrictions — check before switching.
Does the new regime have 80C?
No — no 80C, 80D, HRA, or home-loan interest deductions. Just the Rs 75,000 standard deduction.
What is the 87A rebate in the new regime?
Income up to Rs 12 lakh pays zero tax after the rebate. Between Rs 12L and Rs 12.75L, marginal relief caps the tax at the income above Rs 12L.
I have a home loan — which regime?
Home-loan interest (up to Rs 2L) is a big old-regime deduction. With a large loan plus 80C, old often wins — run the numbers.
Does HRA matter for the choice?
Yes — HRA exemption only exists in the old regime. Big HRA in a metro can single-handedly tilt the verdict.
What if my employer already chose for me?
Employers deduct TDS per your declared regime, but the final choice is yours at filing time. You can correct it in your ITR.
Are the slabs the same every year?
No — the Budget can change them yearly. This tool uses FY 2026-27 slabs; re-check after each Budget.