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Finance & Business

Income Tax Calculator — New vs Old Regime (FY 2026-27)

Enter your income and deductions to see tax payable under both regimes side by side, plus how it compares across income groups from ₹5 lakh to ₹1 crore+.

Formula reviewed against Income Tax Act slabs, Sec 87A rebate, and surcharge rules for FY 2026-27 (AY 2027-28), unchanged from FY 2025-26 per Union Budget 2026 · Last checked Aug 2026 · methodology
Formula

How tax payable is derived

Each regime applies its own slab rates to taxable income, then a rebate, surcharge, and cess are layered on in order.

Taxable income = Gross income − Standard deduction − Other deductions
Tax after rebate = Slab tax − Sec 87A rebate (with marginal relief)
Total tax = Tax after rebate × (1 + surcharge %) × (1 + 4% cess)
Standard deduction₹75,000 (new regime) or ₹50,000 (old regime) — salaried/pension income only
Sec 87A rebateZeroes out tax up to ₹12L taxable income (new) or ₹5L (old), with marginal relief just above
Surcharge0% up to ₹50L, then 10% / 15% / 25% (new) or up to 37% (old) as income rises
Cess4% Health & Education Cess on tax plus surcharge, for every taxpayer
Worked example

₹15,00,000 salary, ₹1.5 lakh of 80C/80D deductions

A salaried individual below 60 earning ₹15,00,000 a year, claiming ₹1,50,000 in deductions under the old regime (80C, 80D, etc. — not usable under the new regime):

ItemNew regimeOld regime
Standard deduction₹75,000₹50,000
Other deductions₹0₹1,50,000
Taxable income₹14,25,000₹13,00,000
Tax before cess₹93,750₹2,02,500
Cess (4%)₹3,750₹8,100
Total tax payable₹97,500₹2,10,600

At exactly ₹1.5 lakh of old-regime deductions, the two regimes land close together for this income level — small changes in either direction can flip which one wins, which is why it's worth re-running the numbers with your actual deduction total above.

Comparison

Tax payable across income groups

Same salaried, below-60 profile at every income level — new regime with no extra deductions (since it allows almost none) versus old regime assuming a typical ₹1.5 lakh in 80C/80D deductions.

Gross incomeNew regime taxOld regime taxCheaper regime
₹5,00,000₹0₹0Either
₹7,50,000₹0₹23,400New
₹10,00,000₹0₹75,400New
₹12,75,000₹0₹1,40,400New
₹15,00,000₹97,500₹2,10,600New
₹20,00,000₹1,92,400₹3,66,600New
₹25,00,000₹3,19,800₹5,22,600New
₹35,00,000₹6,31,800₹8,34,600New
₹50,00,000₹10,99,800₹13,02,600New
₹1,00,00,000₹29,25,780₹31,48,860New

The new regime tends to win at lower and middle incomes with modest deductions, since income up to ~₹12.75 lakh is effectively tax-free. The old regime can pull ahead once deductions are large relative to income — the exact crossover depends on your specific numbers, which is what the calculator above solves for.

Reference

Full slab structure by regime

New regime — all ages
SlabRate
Up to ₹4,00,000Nil
₹4,00,000 – ₹8,00,0005%
₹8,00,000 – ₹12,00,00010%
₹12,00,000 – ₹16,00,00015%
₹16,00,000 – ₹20,00,00020%
₹20,00,000 – ₹24,00,00025%
Above ₹24,00,00030%
Old regime — below 60
SlabRate
Up to ₹2,50,000Nil
₹2,50,000 – ₹5,00,0005%
₹5,00,000 – ₹10,00,00020%
Above ₹10,00,00030%
Old regime — 60 to 80 (senior citizen)
SlabRate
Up to ₹3,00,000Nil
₹3,00,000 – ₹5,00,0005%
₹5,00,000 – ₹10,00,00020%
Above ₹10,00,00030%
Old regime — 80+ (super senior citizen)
SlabRate
Up to ₹5,00,000Nil
₹5,00,000 – ₹10,00,00020%
Above ₹10,00,00030%
FAQ

Common questions

It depends on how much you claim in deductions. The new regime has lower rates but almost no exemptions beyond the standard deduction and employer NPS contribution. The old regime has higher rates but rewards deductions like 80C (up to ₹1.5 lakh), 80D health insurance, HRA, and home loan interest. As a rough guide, if your eligible deductions comfortably exceed roughly ₹4–4.5 lakh a year, the old regime often works out cheaper; below that, the new regime usually wins. Run both numbers through the calculator above with your actual figures rather than relying on a rule of thumb.

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