Old vs New Tax Regime Calculator 2026-27

New regime is better if your total deductions are less than Rs 3.75 lakh (for income under 12L) or Rs 4.25 lakh (for income above 15L). Old regime is better if you have significant deductions like HRA (paying rent), home loan interest (up to 2L), 80C investments (1.5L), NPS (50K), and health insurance (80D). Use our calculator above to compare based on your actual numbers.

New Tax Regime slabs: Rs 0-4 lakh: 0%, Rs 4-8 lakh: 5%, Rs 8-12 lakh: 10%, Rs 12-16 lakh: 15%, Rs 16-20 lakh: 20%, Rs 20-24 lakh: 25%, Above Rs 24 lakh: 30%. Standard deduction of Rs 75,000 is available. Rebate under Section 87A makes income up to Rs 12 lakh tax-free.

For Rs 15 lakh salary: New Regime tax is approximately Rs 97,500. Old Regime can be better if total deductions exceed Rs 4 lakh (HRA: 1.5-2L + 80C: 1.5L + 80D: 50K + NPS: 50K = 4L+). If you pay rent in metro and have home loan, Old Regime often wins at this income level.

Yes, salaried employees can switch between regimes every financial year. You inform your employer via Form 12BB or choose while filing ITR. However, business owners with business/profession income can only switch once in their lifetime if they opt out of New Regime. New Regime is the default from FY 2023-24 onwards.

New Regime does NOT allow: Section 80C (PPF, ELSS, LIC, EPF), Section 80D (health insurance), HRA exemption, Section 80CCD(1B) (NPS additional 50K), Home Loan Interest Section 24(b), Section 80E (education loan), Section 80G (donations), LTA, and most other Chapter VI-A deductions. Only standard deduction of Rs 75,000 and employer NPS contribution (80CCD(2)) are allowed.

Section 87A rebate for FY 2026-27: New Regime offers up to Rs 60,000 rebate if taxable income is Rs 12 lakh or less (making income up to Rs 12.75L effectively tax-free with standard deduction). Old Regime offers up to Rs 12,500 rebate if taxable income is Rs 5 lakh or less. The rebate is applied after calculating tax but before adding cess.

Break-even deductions by income: Rs 10L income: Rs 4.5L deductions (but New Regime is zero tax anyway). Rs 15L income: Rs 5.5L deductions. Rs 20L income: Rs 7L deductions. Rs 25L income: Rs 8L deductions. These include HRA, 80C, 80D, home loan interest (2L), NPS. At higher incomes, only those maximizing HRA + home loan can achieve break-even. Use our calculator above to find your exact break-even point.

From FY 2023-24 onwards, New Tax Regime is the default for all taxpayers. You need to specifically opt for Old Regime if you want to use it, either through your employer (via Form 12BB) or while filing your ITR. If you don't make a choice, New Regime is automatically applied.