Which is better, the old tax regime or the new tax regime?

It depends on how much you claim in deductions. The new regime has wider slabs and a higher standard deduction but allows almost none of the old regime's exemptions, so it usually wins for people with few deductions. The old regime can still be better if you claim substantial HRA, Section 123 investments and health insurance. This calculator computes both side by side for FY 2026-27 so you can compare your own numbers.

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Income Tax Calculator

Compare the Old and New Tax Regimes instantly, as per the Income Tax Act, 2025. Precise work, done in less time.

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Income

Gross annual salary, before any deduction

Gross taxable salary (annual, in Rupees)

Employment type

Age category

Tax slabs for reference

Under Section 202 (formerly Section 115BAC) · general taxpayer rates

Old Tax Regime

Up to Rs. 2,50,000	Nil
Rs. 2,50,001 to Rs. 5,00,000	5%
Rs. 5,00,001 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

For a senior citizen (60–79) the nil slab extends to Rs. 3,00,000, and for a super senior citizen (80 and above) to Rs. 5,00,000 with no 5% band. Standard Deduction of Rs. 50,000 applies. Rebate under Section 156 (formerly Section 87A) of up to Rs. 12,500 applies if taxable income is Rs. 5,00,000 or below.

New Tax Regime - Default Regime

Up to Rs. 4,00,000	Nil
Rs. 4,00,001 to Rs. 8,00,000	5%
Rs. 8,00,001 to Rs. 12,00,000	10%
Rs. 12,00,001 to Rs. 16,00,000	15%
Rs. 16,00,001 to Rs. 20,00,000	20%
Rs. 20,00,001 to Rs. 24,00,000	25%
Above Rs. 24,00,000	30%

Standard Deduction of Rs. 75,000 applies. A full rebate of up to Rs. 60,000 applies if taxable income is Rs. 12,00,000 or below, with marginal relief extending to approximately Rs. 12,70,588.

Investments and savings

Under Section 123 (formerly Section 80C) · combined deduction capped at Rs. 1,50,000

Old Regime only

Rs. 0

Employees' Provident Fund (EPF) - employee contribution

Public Provident Fund (PPF)

Life insurance premium

Equity Linked Savings Scheme (ELSS) mutual funds

National Savings Certificate (NSC)

Sukanya Samriddhi Yojana

Unit Linked Insurance Plan (ULIP)

Housing loan - principal repayment

5-year tax-saver fixed deposit

Senior Citizens Savings Scheme (SCSS)

Children's tuition fees

Pension policy (LIC annuity, merged from Section 80CCC)

Combined cap Rs. 1,50,000Rs. 0 used

Additional NPS contribution (formerly Section 80CCD(1B))

Capped at Rs. 50,000, over and above the Section 123 basket.

Health insurance premium

Under Section 126 (formerly Section 80D)

Old Regime only

Rs. 0

Self, spouse and children (including preventive check-up)

Capped at Rs. 25,000. A preventive health check-up of up to Rs. 5,000 is included within this cap, not additional to it.

Parents' premium

Parents are senior citizens (cap of Rs. 50,000 instead of Rs. 25,000)

House Rent Allowance (HRA)

Under Schedule II, HRA Entry (formerly Section 10(13A))

Old Regime only

Rs. 0

Basic salary + Dearness Allowance (annual)

HRA received (annual)

Rent paid (annual)

City of residence

The metro city category now includes Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad.

Other exemptions included in salary

Under Schedule II (formerly Section 10) · Leave Travel Allowance, allowances and company-specific items

Old Regime only

Rs. 0

Add any further company-paid exemption item that forms part of your gross salary.

Professional Tax

Under Section 19 (formerly Section 16(iii)) · deductible from salary income under the Old Regime only

Old Regime only

Rs. 0

Professional Tax paid

Capped at Rs. 2,500 a year. Levied by the state, not the centre, so it does not apply in Delhi, Haryana, Uttar Pradesh, Rajasthan and other states that do not levy it. Under the New Regime this deduction is not available, and the figure you enter here is ignored on that side of the comparison.

Employer's NPS contribution

Under Section 124 (formerly Section 80CCD(2)) · the one deduction allowed under both regimes

Both Regimes

Rs. 0

Employer's National Pension System contribution

Include only if it is already part of the gross salary entered above. No upper cap.

Fills in the comparison below. Tap again any time after changing details.

TAX REGIME COMPARISON - TAX YEAR 2026-27

Parameter	New Regime	Old Regime
Fill in your details above, then tap Calculate Tax to see your comparison.

Figures above show income tax liability only. They don't account for other salary deductions (PF, loan EMIs, insurance premiums deducted at source, etc.), so this isn't your full take-home pay.

Before you rely on these figures

This calculator gives a quick comparison of your likely tax under the old and new regimes for Tax Year 2026-27. It covers the deduction heads shown above and assumes a full 12-month year on a single salary income.

It does not cover income from house property, capital gains, business or profession, or other sources, and it does not account for TDS already deducted, advance tax paid, relief under Section 89, or interest and fees for late filing. Your actual liability is determined by the Income-tax Act, 2025 and the rules made under it.

For filing, or where your situation is not a straightforward salaried one, have the numbers confirmed by a chartered accountant.