Old vs New Tax Regime Calculator
Tax under both regimes from your payslip, the one number that decides it — the deductions at which the old regime starts to win — and what each salary lever is worth in rupees.
Rules as of 1 April 2026. Budget 2026 changed no slab, rebate or deduction, so FY 2026-27 and FY 2025-26 are identical here. Education only — not tax advice.
Your salary
From your payslip or CTC letter. Annual figures. Nothing leaves your browser.
all components including bonus
often 40–50% of gross
0 if your CTC has none
0 if you own or live with family
EPF + PPF + ELSS + life premium + tuition
self, spouse, children
Add detail — NPS, home loan, parents' cover, other income, age
employer's contribution, per year
up to ₹50,000, over 80C
self-occupied, up to ₹2 lakh
per year
80TTA / 80TTB
rent received, FD interest, etc.
per year, from payslip
FY 2026-27, rules as of 1 April 2026
New regime saves you ₹44,023
New regime
₹1,14,348
7.5% of taxable ₹15.33 L
Old regime
₹1,58,371
14.0% of taxable ₹11.33 L
Break-even deductions
₹3.28 L
Old regime beats new only once your Chapter VI-A and 24(b) deductions exceed this. You have ₹1.83 L — ₹1.45 L short.
Tax vs deductions
What HR or you could change
| Lever | Saves (new) | Saves (old) |
|---|---|---|
| Move salary into employer NPS (80CCD(2))Up to 14% of basic (₹84,000) is deductible in the new regime, 10% (₹60,000) in the old. Needs HR to restructure the CTC. | ₹13,104 | ₹18,720 |
| Own NPS contribution, 80CCD(1B), ₹50,000Over and above 80C. Old regime only; locked until 60. | — | ₹15,600 |
| Claim LTA of ₹50,000 with travel billsTwo journeys in a block of four years, domestic travel fare only. Old regime only. | — | ₹15,600 |
Each row is computed on its own; savings do not simply add up. Computation, not advice.
Declaration values, new regime
- Regime
- New
- Employer NPS, 80CCD(2)
- ₹0
- Standard deduction
- ₹75,000
- Nothing else to declare
- HRA, 80C, 80D and 24(b) do not apply
Line-by-line working
New regime
- Salary incl. employer NPS
- ₹16,00,000
- Other income
- ₹8,000
- Standard deduction
- −₹75,000
- Employer NPS 80CCD(2)
- −₹0
- Taxable
- ₹15,33,000
- Slab tax
- ₹1,09,950
- 87A rebate
- −₹0
- Surcharge
- ₹0
- Cess 4%
- ₹4,398
- Total
- ₹1,14,348
Old regime
- Salary incl. employer NPS
- ₹16,00,000
- HRA exemption
- −₹2,40,000
- LTA exemption
- −₹0
- Standard deduction
- −₹50,000
- Professional tax
- −₹2,400
- Other income
- ₹8,000
- Chapter VI-A + 24(b)
- −₹1,83,000
- Taxable
- ₹11,32,600
- Slab tax
- ₹1,52,280
- 87A rebate
- −₹0
- Surcharge
- ₹0
- Cess 4%
- ₹6,091
- Total
- ₹1,58,371
Old vs new regime, FY 2026-27
New regime saves you ₹44,023
Break-even deductions ₹3.28 L · you have ₹1.83 L
- Gross salary
- ₹16.00 L
- New regime tax
- ₹1,14,348
- Old regime tax
- ₹1,58,371
- HRA exemption
- ₹2,40,000
Rules as of 1 April 2026 · estimate, not advice · jpvfin.com
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Salaried? You can switch every year. Business or professional income can opt out of the new regime only once. If you trade F&O, that income is business income — see the F&O turnover and tax calculator. Savings-account interest and the 80TTA deduction are explained in how to save tax on savings interest.
Estimate only, for a resident individual. Excludes capital gains and other special-rate income (the 87A rebate never applies to those), interest under 234B/234C, and state-specific professional-tax slabs beyond the figure you enter. Employer NPS is deductible up to 14% of basic in the new regime and 10% in the old (14% for government employers). Verify with the Income Tax Department's own calculator or a chartered accountant before filing.
What changed for FY 2026-27
Nothing. Budget 2026 left both regimes as Budget 2025 set them: new-regime slabs of 0 / 5 / 10 / 15 / 20 / 25 / 30% at ₹4 lakh steps, an 87A rebate that zeroes tax up to ₹12 lakh, a ₹75,000 standard deduction, and a 25% surcharge cap. The old regime keeps its 2.5 / 5 / 10 lakh slabs, ₹50,000 standard deduction and ₹5 lakh rebate limit. The calculator carries both years so a July filer sees the right one.
How the break-even number works
Old-regime tax falls as your deductions rise; new-regime tax does not move. The calculator finds the deduction total where the two lines cross — solved to the rupee, not read off a chart — and shows how far you are from it. Above that number, the old regime wins; below it, the new one does. HRA and LTA are exemptions, not deductions, so they are netted off first and shown separately.
The levers HR can change
- Employer NPS — the only lever that works in the new regime. Up to 14% of basic, deductible under 80CCD(2).
- HRA vs rent — exemption is the least of HRA received, rent minus 10% of basic, and 50% (metro) or 40% of basic. Old regime only.
- LTA — exempt with travel bills, two journeys in four years. Old regime only.
- Basic itself — a higher basic raises the HRA and NPS ceilings, and also raises PF and gratuity.
Picked wrong at declaration time?
For salaried taxpayers the declaration to HR only decides TDS. The regime that counts is the one you select in the return, and you can choose either in July regardless of what you told the employer in April. Over-deducted TDS comes back as a refund; under-deducted tax is paid with the return, with interest under 234B/C if it is large. Business income does not get this flexibility.
Frequently asked questions
Which tax regime is the default?+
The new regime. Since FY 2023-24 it applies unless you opt out, and your employer deducts TDS on that basis unless you declare otherwise. If you have not told HR anything, you are on the new regime.
Can I switch between the old and new regime every year?+
If your income is salary, pension, interest or rent, yes — you choose afresh each year when you file, and can tell your employer either way at declaration time. If you have business or professional income, including F&O trading, you can move out of the new regime only once, and coming back to it means you cannot leave again.
Does HRA exist in the new regime?+
No. HRA, LTA, 80C, 80D, 24(b) on a self-occupied house and almost every other exemption and deduction are switched off. What survives is the ₹75,000 standard deduction, the employer's NPS contribution under 80CCD(2) up to 14% of basic, and a handful of others such as family-pension deduction. That is why the old regime only wins with a large stack of deductions.
Does employer NPS count in both regimes?+
Yes, and it is the one lever that works under the new regime. The employer's contribution to your NPS is deductible under 80CCD(2) — up to 14% of basic in the new regime and 10% in the old (14% for government employers). Because it is the employer's money rather than yours, it needs a CTC restructure, which the calculator prices in rupees so you can take the number to HR.
What is marginal relief?+
A cap that stops a small rise in income from causing a larger rise in tax. In the new regime, income just above ₹12 lakh pays tax no greater than the amount above ₹12 lakh — so ₹12,15,000 owes ₹15,000 plus cess, not the ₹62,250 the slabs would give. The same principle applies at each surcharge threshold above ₹50 lakh. Most calculators skip it; this one applies it on both sides.
Is this advice?+
No. It is arithmetic on the numbers you enter, using the slabs, rebate, surcharge and cess published for the financial year shown. It does not know about capital gains, foreign income, or the details of your employment contract. Check the Income Tax Department's own calculator or a chartered accountant before you file or restructure your salary.
Sources and rules changelog
- Slabs, rebate, surcharge and cess for both regimes, FY 2025-26 and FY 2026-27: cleartax.in, cleartax.in, incometax.gov.in. Verified 4 September 2026.
- HRA exemption under section 10(13A) and rule 2A; 80C, 80CCD, 80D, 80E, 80G, 80TTA/TTB and 24(b) limits as in the Income-tax Act, 1961.
- Changelog. 1 April 2026: no change (Finance Act 2026). 1 April 2025: new-regime slabs widened to ₹4 lakh steps, 87A rebate raised to ₹60,000 with the limit at ₹12 lakh, standard deduction ₹75,000 (Finance Act 2025).
Disclaimer:Educational only; not tax advice. Computed for a resident individual from the figures you enter, excluding capital gains and other special-rate income, foreign income, and interest under sections 234B and 234C. Confirm with the Income Tax Department's calculator or a chartered accountant before filing or changing your salary structure.
Related: Tax on savings-account interest · F&O turnover & tax · Arbitrage fund vs FD after tax