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Income Tax Calculator — Old vs. New Regime
For Financial Year 2026-27 (Tax Year 2026-27), under the Income-tax Act, 2025. Compares net tax payable under both regimes so you can see, at a glance, which one actually works out cheaper for your numbers.
Income Tax Calculator — Old vs. New Regime
Compares tax payable under both regimes for a resident individual below 60 years. Does not include surcharge, capital gains, or other special-rate income.
Illustrative estimate only, using Section 87A rebate and standard deduction (₹75,000 new / ₹50,000 old for salaried income) applicable for FY 2026-27. Surcharge (applicable above ₹50 lakh), marginal relief edge cases, and special-rate incomes are not factored in. Please confirm your exact liability with a Chartered Accountant before filing or making tax decisions.
How the two regimes actually differ
The new regime, the default since FY 2023-24 and carried forward under the Income-tax Act, 2025, trades away most deductions — no 80C, no 80D, no HRA exemption, no home loan interest set-off on a self-occupied property — in exchange for lower slab rates and a bigger standard deduction. The old regime keeps every deduction you're used to, at higher slab rates. Neither one is "better" in general; it depends entirely on how much you'd actually claim under the old regime.
As a rough rule of thumb: if your old-regime deductions (80C, 80D, HRA, home loan interest, and the rest, added together) comfortably exceed roughly ₹4-4.5 lakh, the old regime is usually still cheaper. Below that, the new regime typically wins. The calculator above does the actual comparison for your numbers rather than a rule of thumb.
What this calculator does not include
- Surcharge — applies once total income crosses ₹50 lakh, at rates that step up further at higher slabs, and is capped differently under each regime.
- Capital gains and other special-rate income — these are taxed at their own rates regardless of regime and don't run through the slab calculation shown here.
- Marginal relief at the edges of the Section 87A rebate threshold, which can change the effective tax on income just above the cutoff.
None of these are unusual situations for a working professional with investments or a salary above ₹50 lakh — which is exactly the point at which a quick calculator stops being enough and an actual computation is worth getting right.
Frequently asked
Can I switch between regimes every year?
If you have only salary and other non-business income, yes — you can choose either regime each year when you file. If you have business or professional income, switching back to the old regime after opting for the new one is restricted, so the choice carries more weight.
Which regime is the default if I don't choose?
The new regime applies automatically unless you actively opt for the old regime while filing (via the relevant form/declaration for business income, or simply by selecting it in the ITR utility for salary-only income).
Does this calculator account for HRA?
Not directly — HRA exemption only matters under the old regime, and it's folded into "Old-Regime Deductions" here as a single number. Use the HRA Exemption Calculator first to work out that figure precisely, then add it in.
Sources
A calculator gives you a read. It doesn't know about your specific deductions, other income, or which regime you're already locked into. If the numbers are close, or the stakes are meaningful, a short conversation is worth more than a guess.
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