Old vs New Tax Regime Calculator (FY 2026-27)
Enter your income and the deductions you can actually claim, and compare your tax liability under both regimes for FY 2026-27 (AY 2027-28).
| Component | New Regime | Old Regime |
|---|---|---|
| Taxable income | ₹0 | ₹0 |
| Tax after rebate | ₹0 | ₹0 |
| Surcharge | ₹0 | ₹0 |
| Health & education cess (4%) | ₹0 | ₹0 |
Illustrative only, for FY 2026-27 (AY 2027-28), and does not constitute tax advice. Assumes resident individual status and the salaried/pensioner standard deduction (₹75,000 new regime, ₹50,000 old regime). Section 80C and home loan interest are capped at their statutory limits (₹1,50,000 and ₹2,00,000); other sections carry their own conditions and limits which aren't separately checked here. Surcharge includes marginal relief at the ₹50L, ₹1Cr, ₹2Cr and ₹5Cr thresholds. For an exact figure, or help deciding which regime and deductions suit you, do get in touch.
Since the new tax regime became the default, most salaried taxpayers in India have had to make an annual choice: stick with the new regime's lower slab rates and minimal deductions, or opt for the old regime's higher rates offset by deductions like 80C, 80D, HRA, and home loan interest. There's no single right answer — it depends entirely on how much you can actually claim.
Enter your gross annual income, age, and the deductions you genuinely qualify for below, and this calculator works out your tax liability under both regimes for FY 2026-27 (AY 2027-28), including surcharge and cess, so you can see which one actually saves you money.
Frequently asked questions
Which tax regime should I choose — old or new?
It depends on how much you can claim in deductions under the old regime. If your 80C, 80D, HRA, and other eligible deductions add up to a meaningful share of your income, the old regime often works out cheaper; if you claim little beyond the standard deduction, the new regime's lower slab rates usually win. The calculator above compares both using your actual numbers.
Can I switch between the old and new regime every year?
Salaried individuals with no business income can choose either regime each year when filing their return. Those with business or professional income face more restrictions on switching back and forth, so it's worth checking your specific situation.
What deductions are only available under the old regime?
Section 80C (PPF, ELSS, life insurance, EPF), 80D (health insurance), HRA exemption, and home loan interest under Section 24(b) are only available under the old regime — barring a few exceptions such as the employer's NPS contribution, which both regimes allow.
Does the new tax regime have any deductions at all?
Yes — it isn't deduction-free. The new regime allows the standard deduction for salaried individuals and pensioners, and a rebate that brings tax to zero up to a certain income level, but it excludes most of the deductions available under the old regime.
How does surcharge work at higher incomes?
Surcharge applies above certain income thresholds (₹50 lakh, ₹1 crore, ₹2 crore, and ₹5 crore) and is calculated on the tax amount, not on income directly. Marginal relief ensures the surcharge doesn't push your total tax above what you'd owe at the threshold plus the extra income earned.
Explore other free tools
Not sure which deductions you actually qualify for? Book a free 30-min call →