Old vs New Tax Regime Calculator
Compare illustrated income tax under the old and new regimes for Tax Year 2026-27 (Income Tax Act, 2025; earlier styled FY 2026-27 / AY 2027-28). This tool shows the numbers for both regimes based on what you enter — it does not tell you which regime to choose.
Your details
Adjust the amounts below to see how the illustrated tax changes.
In rupees, per year, before any deductions.
Determines whether the standard deduction applies, in both regimes.
Combined total of 80C, 80D, HRA, home loan interest, etc. that you're eligible to claim under the old regime. Not used for the new regime.
Affects the old regime's senior citizen exemption only.
Your comparison
Under these entered assumptions, the illustrated tax is lower under the new regime by ₹1,17,000.
This calculator does not model surcharge, which applies to real taxable income above ₹50 lakh under current law. For higher incomes, actual tax will differ from — and likely exceed — the figures shown here.
Figures reflect Tax Year 2026-27 (Income Tax Act, 2025; earlier styled FY 2026-27 / AY 2027-28) rules as implemented by this calculator, applying the standard deduction (where you're salaried), Section 87A rebate, and 4% cess for each regime. Illustrative. Confirm with a tax professional / current Income Tax rules.
For a gross income of ₹12,00,000, under Tax Year 2026-27 (Income Tax Act, 2025; earlier styled FY 2026-27 / AY 2027-28) rules, this calculation shows the new regime as lower illustrated tax based on the entered assumptions, by ₹1,17,000. This is not complete tax liability — this engine does not calculate surcharge, which can apply at higher incomes.
Try changing the income or deductions to see how the comparison shifts — always confirm your actual position with a tax professional or the Income Tax Department.
Learn about this calculator
Compares illustrated income tax under the old and new tax regimes, for the income and deductions you enter.
The new regime generally applies lower slab rates but does not allow most deductions and exemptions (like 80C, HRA, home loan interest). The old regime uses higher slab rates but lets you reduce taxable income first, if you have eligible deductions. This calculator shows both illustrated figures side by side.
How it works
It applies the slabs, Section 87A rebate, standard deduction (where salaried), and 4% cess for both regimes, plus the old regime's senior/super-senior citizen exemptions based on age, using this engine's implementation of the rules for the financial year shown.
What each input means
- Gross annual income
- Total income per year, before any deductions.
- Are you salaried?
- Determines whether the standard deduction applies, in both regimes.
- Total deductions (old regime only)
- Combined total of 80C, 80D, HRA, home loan interest, etc. — not used for the new regime.
- Age
- Affects the old regime's senior-citizen exemption only.
What the results mean
- Illustrated tax — new/old regime
- The tax this calculation shows under each regime, for the entered inputs.
- Difference based on these inputs
- Which regime shows lower illustrated tax under these specific numbers, and by how much.
Assumptions
- The entered deductions figure is fully eligible and accurately totalled — this tool does not verify eligibility for any individual deduction.
Limitations
- This calculator does NOT model surcharge, which applies to real taxable income above ₹50 lakh under current law — for higher incomes, actual tax will differ from, and likely exceed, the figures shown.
- It does not model special-rate income (like capital gains taxed differently), HRA calculated from actual rent and salary components, or any circumstance-specific rule beyond what's listed here.
- This is not complete tax liability for every taxpayer, and this tool does not tell you which regime to choose.
Common mistakes
- Assuming the regime shown as "lower" here is automatically the right choice — the right choice can depend on factors this calculator doesn't model.
- Forgetting that surcharge is excluded, which matters more the higher the income.
FAQ
Which regime should I choose?
This tool doesn't tell you which to choose — it shows illustrated tax under each regime for the numbers entered. Consider speaking with a tax professional.
Does this include surcharge for higher incomes?
No. This calculator does not model surcharge, which applies to real taxable income above ₹50 lakh under current law.
For your exact liability, confirm your position with a tax professional or the official Income Tax Department resources.
For illustration only. Not investment advice. Mutual fund investments are subject to market risks; read all scheme related documents carefully. Returns assumed are hypothetical and not guaranteed.