Compare your income tax liabilities side-by-side under the Old and New tax regimes for Financial Year 2026-27 (Assessment Year 2027-28). Enter your income and exemptions to find the most tax-saving option instantly.
Under Old Regime, exemptions limits vary: <60 years (₹2.5L), 60-79 years (₹3L), 80+ years (₹5L).
EPF, PPF, ELSS, Life Insurance premiums, NPS (within 1.5L).
Health insurance premium (₹25k for self/family, extra ₹25k for senior parents).
Tax-exempt House Rent Allowance (use our HRA calculator to compute).
Interest paid on home loan for self-occupied property.
LTA, NPS Sec 80CCD(1B), Sec 80G donations, Sec 80TTA interest, etc.
Based on your annual gross income of ₹12,00,000 and eligible tax breaks.
| Particulars | Old Regime | New Regime |
|---|---|---|
| Gross Income / CTC | ₹12,00,000 | ₹12,00,000 |
| Total Deductions | -₹2,25,000 | -₹75,000 |
| Net Taxable Income | ₹9,75,000 | ₹11,25,000 |
| Base Tax | ₹1,07,500 | ₹52,500 |
| Section 87A Rebate / Relief | -₹0 | -₹52,500 |
| Education Cess (4%) | ₹4,300 | ₹0 |
| Net Tax Payable | ₹1,11,800 | ₹0 |
| Monthly In-Hand Salary | ₹90,683 | ₹1,00,000 |
Detailed step-by-step calculation showing how your tax was computed across each tax bracket.
Under the New Regime (FY 2026-27), income up to ₹4L is nil, ₹4L–₹8L is taxed at 5%, ₹8L–₹12L at 10%, ₹12L–₹16L at 15%, ₹16L–₹20L at 20%, ₹20L–₹24L at 25%, and above ₹24L at 30%. A standard deduction of ₹75,000 applies. Under the Old Regime, slabs are ₹0–₹2.5L nil, ₹2.5L–₹5L at 5%, ₹5L–₹10L at 20%, and above ₹10L at 30%, with ₹50,000 standard deduction but no restrictions on claiming deductions under 80C, 80D, HRA, LTA, and home loan interest.
The Old Regime is better when your total eligible deductions cross the breakeven threshold — typically around ₹3.75L–₹5L for incomes between ₹10L–₹20L. The key deductions to add up: ₹1.5L under 80C (PF + PPF + ELSS + LIC premium), ₹25,000–₹50,000 under 80D (health insurance), HRA exemption (varies by salary and rent), and home loan interest up to ₹2L under Section 24(b). If you have a home loan plus significant 80C investments plus HRA, you almost certainly benefit from the Old Regime.
The New Regime shines for early-career professionals in the ₹7L–₹12L income range who have just started working, have no home loans, and minimal 80C investments. At ₹7L income under the New Regime, the full rebate under Section 87A means zero tax liability. At ₹10L, with ₹75,000 standard deduction, taxable income is ₹9.25L — resulting in roughly ₹42,500 in tax. Achieving the same result under the Old Regime requires at least ₹2.5L in deductions, which many young earners cannot claim. The New Regime's simplicity — no declarations, no investment proofs — is also a genuine time-saving advantage.
Here is the side-by-side breakdown of the income tax rates under the two regimes for the assessment year 2026-27:
| New Tax Regime Slabs (Default) | Old Tax Regime Slabs |
|---|---|
| Up to ₹4,00,000 — Nil | Up to ₹2,50,000 — Nil |
| ₹4,00,001 to ₹8,00,000 — 5% | ₹2,50,001 to ₹5,00,000 — 5% |
| ₹8,00,001 to ₹12,00,000 — 10% | ₹5,00,001 to ₹10,00,000 — 20% |
| ₹12,00,001 to ₹16,00,000 — 15% | |
| ₹16,00,001 to ₹20,00,000 — 20% | Above ₹10,00,000 — 30% |
| Above ₹20,00,000 — 30% |
*Note: Under the New Tax Regime, a full tax rebate under Section 87A is applicable for taxable incomes up to ₹12 Lakhs (giving ₹0 net tax liability). Under the Old Regime, the rebate applies up to ₹5 Lakhs.
The New Tax Regime is the default tax regime. If you do not explicitly select the Old Tax Regime at the time of filing your ITR (or declare it to your employer), your taxes will automatically be calculated and deducted based on the New Regime slabs.
No. Almost all exemptions and deductions, including HRA, home loan interest on self-occupied property (Section 24b), Section 80C (PPF, ELSS, EPF), and Section 80D (medical insurance), are disallowed under the New Tax Regime.
Yes, if you have salaried income or pension income. You can switch your regime choice each year at the time of filing your ITR. However, if you have business or professional income, you only have a one-time option to switch back to the Old Regime after opting for the New Regime.