TaxationSample article
Old or new tax regime: a simple way to choose
Instead of guessing, add up the deductions you can actually claim and compare the two totals. Here is the method, step by step.
2 min read
Income tax calculator
Tax for Tax year 2026-27 (1 April 2026 to 31 March 2027) under both regimes, for a resident individual. The new regime is the default; you can choose the old one if it costs less.
Result
You pay less under the new regime
₹1,59,900 less
- New regime
- ₹97,500
- 6.5% of income
- Old regime
- ₹2,57,400
- 17.2% of income
Side by side
| Item | New regime | Old regime |
|---|---|---|
| Gross income | ₹15,00,000 | ₹15,00,000 |
| Deductions and exemptions | ₹75,000 | ₹50,000 |
| Taxable income | ₹14,25,000 | ₹14,50,000 |
| Tax on slabs | ₹93,750 | ₹2,47,500 |
| Rebate | ₹0 | ₹0 |
| Surcharge | ₹0 | ₹0 |
| Health and education cess (4%) | ₹3,750 | ₹9,900 |
| Total tax | ₹97,500 | ₹2,57,400 |
Old regime deductions countedShow 1 rowsHide
| Deduction | Entered | Allowed |
|---|---|---|
| Standard deduction | ₹50,000 | ₹50,000 |
| Total | ₹50,000 |
New regime: tax by slabShow 4 rowsHide
| Income slab | Rate | Income in slab | Tax |
|---|---|---|---|
| ₹0 – ₹4,00,000 | 0% | ₹4,00,000 | ₹0 |
| ₹4,00,000 – ₹8,00,000 | 5% | ₹4,00,000 | ₹20,000 |
| ₹8,00,000 – ₹12,00,000 | 10% | ₹4,00,000 | ₹40,000 |
| ₹12,00,000 – ₹16,00,000 | 15% | ₹2,25,000 | ₹33,750 |
| Tax on slabs | ₹14,25,000 | ₹93,750 |
Old regime: tax by slabShow 4 rowsHide
| Income slab | Rate | Income in slab | Tax |
|---|---|---|---|
| ₹0 – ₹2,50,000 | 0% | ₹2,50,000 | ₹0 |
| ₹2,50,000 – ₹5,00,000 | 5% | ₹2,50,000 | ₹12,500 |
| ₹5,00,000 – ₹10,00,000 | 20% | ₹5,00,000 | ₹1,00,000 |
| Above ₹10,00,000 | 30% | ₹4,50,000 | ₹1,35,000 |
| Tax on slabs | ₹14,50,000 | ₹2,47,500 |
How this is calculated
Taxable income = gross income − standard deduction − other deductions (old regime)
- Standard deduction: ₹75,000 (new), ₹50,000 (old), on salary only
Tax = (slab tax − rebate + surcharge) × (1 + 4% cess)
- New regime rebate: up to ₹60,000 if taxable income is ₹12,00,000 or less, with marginal relief just above
- Old regime rebate: up to ₹12,500 if taxable income is ₹5,00,000 or less
- Surcharge above ₹50 lakh, with marginal relief at each threshold
Assumptions and limits
- Resident individual, with all income taxed at slab rates. Capital gains, lottery winnings and other special-rate income are not included.
- The employer's NPS contribution, family pension and rented property are not included.
- The Income-tax Act, 2025 renumbered the sections; this calculator uses the familiar names (80C, 80D) people know them by.
- Tax is rounded to the rupee. Your Form 16 or return may differ by a few rupees because of rounding rules.
- This is an estimate to compare regimes, not tax advice. Check your return with the e-filing portal or a tax professional.
Rates in the Finance Act, 2026 for tax year 2026-27.
Sources: Finance Bill 2026 – Memorandum explaining the provisions (Income Tax Department); Income Tax Department e-filing portal – tax slabs and rebate
This calculator gives an educational estimate from the values you enter. It isn't personalised financial, tax or investment advice. Rates, rules and your own situation can change the result. Read the disclaimer