India Income Tax Calculator — Old vs New Regime (FY 2026-27)
India's new tax regime has lower rates but fewer deductions; the old regime has higher rates but lets you claim exemptions like 80C and HRA. This calculator runs both for FY 2026-27 and tells you which one actually saves you more, based on your real numbers.
FY 2026-27 slabs. Includes 4% health & education cess. New regime includes the Section 87A rebate (zero tax up to the current threshold).
Uses FY 2026-27 slabs as announced. Tax rules can change in the Union Budget — verify with incometaxindia.gov.in before filing.
How to use this tool
- Enter your annual gross salary (before employer PF/gratuity, i.e. what shows as your taxable salary).
- If you claim deductions (80C investments, 80D insurance, HRA exemption, home loan interest), add the total — these only count in the old regime.
- Press Compare — you'll see both regimes' tax and take-home side by side.
- If your deductions are small, the new regime usually wins; if you have large 80C + HRA claims, the old regime often wins.
Frequently asked questions
What is the difference between the old and new tax regime in India?
The new regime has lower tax rates and a bigger standard deduction, but you give up most exemptions (80C, 80D, HRA, home loan interest, etc.). The old regime has higher slab rates but lets you claim those deductions. Which one is cheaper depends entirely on how much you can actually claim in the old regime.
Is there really zero tax up to ₹12 lakh in the new regime?
Effectively yes, for FY 2026-27 — the Section 87A rebate reduces tax to zero for taxable income up to ₹12,00,000 in the new regime. With the ₹75,000 standard deduction, that means gross salary up to about ₹12.75 lakh can result in zero tax liability under the new regime.
Can I switch between regimes every year?
Salaried individuals (with no business income) can choose either regime each financial year when filing their return — you're not locked in. This calculator helps you decide before the year starts so your employer withholds the right amount (TDS).
Does this include HRA calculation automatically?
No — HRA exemption depends on your actual rent, city and basic salary, so it's a specific calculation you should do separately and add into the 'deductions' field for the old regime comparison here.