Old vs new tax regime · FY 2026-27
Old vs New Tax Regime Calculator FY 2026-27: Which Saves More?
By Pratik Bajoria, Chartered Accountant & NISM-certified Research Analyst · Last reviewed 7 Oct 2026 by Pratik Bajoria, CA · Slabs per Finance Act 2026 (unchanged from FY 2025-26)
A common case I see: “I'm in the old regime because I invest in 80C.” That alone is rarely a good enough reason anymore. ₹1.5 lakh of 80C doesn't come close to the break-even for most salaries.
This calculator compares both regimes for FY 2026-27, the first tax year under the Income-tax Act, 2025, and shows the break-even deductions: how much you must claim in the old regime before it beats the new one. Slabs are unchanged from last year (Finance Bill 2026 memorandum, Income Tax Department).
Lower tax incl. 4% cess (before surcharge)
₹1.5 L
Tax slabs FY 2026-27: new vs old regime
| New regime (s.202) | Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4–8 lakh | 5% |
| ₹8–12 lakh | 10% |
| ₹12–16 lakh | 15% |
| ₹16–20 lakh | 20% |
| ₹20–24 lakh | 25% |
| Above ₹24 lakh | 30% |
| Old regime (below 60) | Rate |
|---|---|
| Up to ₹2.5 lakh | Nil |
| ₹2.5–5 lakh | 5% |
| ₹5–10 lakh | 20% |
| Above ₹10 lakh | 30% |
| Feature | New regime | Old regime |
|---|---|---|
| Standard deduction (salary) | ₹75,000 | ₹50,000 |
| Rebate | Up to ₹60,000 — nil tax to ₹12 lakh taxable (marginal relief above) | Up to ₹12,500 — nil tax to ₹5 lakh taxable |
| HRA, 80C, 80D, home-loan interest | Not allowed | Allowed (within limits) |
| Default? | Yes | Opt in |
| Cess | 4% | 4% |
Old-regime senior citizens (60–80) have a ₹3 lakh basic exemption and super seniors (80+) ₹5 lakh; this calculator uses the below-60 slabs. Sources: Income Tax Department memorandum explaining the Finance Bill 2026 (no change in rates); Income-tax Act, 2025.
Break-even deductions: when does the old regime win?
Old-regime deductions (beyond the ₹50,000 standard deduction) needed for old-regime tax to equal new-regime tax, salaried, FY 2026-27:
| Gross salary | New-regime tax | Break-even deductions | Old-regime tax with ₹1.5L deductions |
|---|---|---|---|
| ₹8 lakh | ₹0 | ₹2.5 lakh | ₹33,800 |
| ₹10 lakh | ₹0 | ₹4.5 lakh | ₹75,400 |
| ₹12.75 lakh | ₹0 | ₹7.25 lakh | ₹1,40,400 |
| ₹15 lakh | ₹97,500 | ₹5.44 lakh | ₹2,10,600 |
| ₹18 lakh | ₹1,50,800 | ₹6.42 lakh | ₹3,04,200 |
| ₹20 lakh | ₹1,92,400 | ₹7.08 lakh | ₹3,66,600 |
| ₹25 lakh | ₹3,19,800 | ₹8 lakh | ₹5,22,600 |
| ₹30 lakh | ₹4,75,800 | ₹8 lakh | ₹6,78,600 |
| ₹40 lakh | ₹7,87,800 | ₹8 lakh | ₹9,90,600 |
| ₹50 lakh | ₹10,99,800 | ₹8 lakh | ₹13,02,600 |
If your genuine deductions are below the break-even figure, the new regime is cheaper. At ₹12.75 lakh, the new regime is tax-free, so the old regime needs ₹7.25 lakh of deductions just to tie. Above roughly ₹25 lakh the break-even settles near ₹8 lakh.
Tax under both regimes at common deduction levels
Tax incl. 4% cess, salaried, below 60, no surcharge. Each cell: old-regime tax; the new-regime tax is in the second column.
| Gross salary | New regime | Old, ₹1.5 lakh ded. | Old, ₹3.75 lakh ded. | Old, ₹5 lakh ded. | Old, ₹7 lakh ded. |
|---|---|---|---|---|---|
| ₹8 lakh | ₹0 | ₹33,800 | ₹0 | ₹0 | ₹0 |
| ₹10 lakh | ₹0 | ₹75,400 | ₹28,600 | ₹0 | ₹0 |
| ₹12.75 lakh | ₹0 | ₹1,40,400 | ₹85,800 | ₹59,800 | ₹18,200 |
| ₹15 lakh | ₹97,500 | ₹2,10,600 | ₹1,40,400 | ₹1,06,600 | ₹65,000 |
| ₹18 lakh | ₹1,50,800 | ₹3,04,200 | ₹2,34,000 | ₹1,95,000 | ₹1,32,600 |
| ₹20 lakh | ₹1,92,400 | ₹3,66,600 | ₹2,96,400 | ₹2,57,400 | ₹1,95,000 |
| ₹25 lakh | ₹3,19,800 | ₹5,22,600 | ₹4,52,400 | ₹4,13,400 | ₹3,51,000 |
| ₹30 lakh | ₹4,75,800 | ₹6,78,600 | ₹6,08,400 | ₹5,69,400 | ₹5,07,000 |
Amber = old regime cheaper. Deduction levels: ₹1.5L (80C only), ₹3.75L (80C + 80D + some HRA), ₹5L and ₹7L (large HRA + home-loan interest).
Chart: tax by income — new regime vs old regime
Worked example: ₹18 lakh salary in Pune
Deductions under the old regime: HRA exemption ₹2,40,000 (see the HRA calculator — Pune now gets the 50% limit), 80C ₹1,50,000 (EPF + PPF), 80D ₹25,000 and NPS 80CCD(1B) ₹50,000 = ₹4,65,000. Old-regime tax ≈ ₹2,05,920; new-regime tax ≈ ₹1,50,800. Break-even at ₹18 lakh is ₹6.42 lakh, so the new regime still wins here by ₹55,120.
Don't buy products only to "fill" 80C — if a lock-in only makes sense because of the deduction, the new regime plus flexible SIPs may serve you better (SIP planning, emergency fund).
The mistake: counting deductions you won't actually claim
People add up every deduction they could claim. Then they don't pay the health premium, the rent receipts are missing, or the home loan certificate arrives late. Compare using deductions you'll actually have proof for on 31 March. If the old regime only wins with deductions you're still planning, take the new one.
Frequently asked questions
Which tax regime is better for FY 2026-27?
It depends on how much you can claim in deductions. For a salaried person, the new regime is cheaper unless old-regime deductions (HRA, 80C, 80D, home-loan interest etc.) exceed a break-even level — about ₹5.44 lakh at ₹15 lakh gross, ₹7.08 lakh at ₹20 lakh and ₹8 lakh at ₹30 lakh. Most people with only 80C and 80D are better off in the new regime.
Have tax slabs changed for FY 2026-27?
No. Budget 2026 did not change slab rates under either regime. FY 2026-27 is the first 'tax year' under the Income-tax Act, 2025 (in force from 1 April 2026); section numbers changed (the new regime is section 202, formerly 115BAC) but the amounts — slabs, ₹75,000 standard deduction, ₹12 lakh rebate limit — are the same as FY 2025-26.
Is income up to ₹12.75 lakh tax-free under the new regime?
For salaried individuals, yes in most cases: ₹12,75,000 minus the ₹75,000 standard deduction leaves ₹12 lakh of taxable income, and the rebate (up to ₹60,000) brings tax to nil. Just above ₹12 lakh taxable, marginal relief limits tax to the income above ₹12 lakh. Special-rate income such as capital gains is treated separately.
What deductions are allowed in the new regime?
The new regime allows the ₹75,000 standard deduction for salary/pension, the employer's NPS contribution (up to 14% of salary) and a few others, but not HRA, 80C, 80D or home-loan interest on a self-occupied house. That is why the comparison hinges on your deduction total.
Can I switch between old and new regime every year?
Salaried individuals without business income can choose each year when filing the return (and tell the employer for TDS). Those with business or professional income can switch back from the new regime only once, so decide carefully.
Does this calculator include surcharge?
No. It includes the 4% health and education cess but not surcharge, which applies above ₹50 lakh of income (capped at 25% in the new regime). For income above ₹50 lakh, treat the result as a lower bound and check with a tax professional.
Educational tool only — not investment, tax or legal advice. Figures are formula-based illustrations using the stated assumptions; actual outcomes depend on notified rates, rules and your specific facts. Verify with official sources or a qualified professional before acting. Findost (findost.io) and PaisaGuru by Findost are not affiliated with Findoc, FinDost, or other similarly named brands. PaisaGuru is the AI wealth concierge of Findost.