Our income tax calculator old vs new takes one income and the deductions you really claim, then works out the tax in each regime and highlights the cheaper one. For most salaries the new regime wins unless your deductions are very large.
The slab rates behind it are those of FY 2025-26 (AY 2026-27), which also apply in tax year 2026-27. Use it before you tell your employer your choice and again before you file. This site is independent; the final choice is made in the return you file on the e-filing portal.
Quick facts
Compares
Old and new regime on the same incomeNew regime zero tax
Taxable income up to ₹12 lakhOld regime zero tax
Taxable income up to ₹5 lakhStandard deduction
₹75,000 new, ₹50,000 oldBreak even at ₹15 lakh pay
About ₹5.94 lakh of total deductionsPrivacy
Runs in your browser; nothing stored
What the income tax calculator old vs new shows
Enter gross salary or other income, your age band and each deduction you will actually claim: 80C, 80D, HRA exemption, home loan interest, NPS and so on. The calculator applies the right standard deduction to each side, runs both slab tables, adds the rebate, surcharge and 4% cess, and puts the two totals next to each other. The lower one is highlighted. It also shows the break even deduction: the amount of old regime deductions at which both regimes cost the same. All the working happens inside your browser and no data is stored.
Read the result this way. If your deductions are below the break even figure, the new regime is cheaper. If they are above it, the old regime saves money, by the amount the calculator shows.
Which regime is better for income tax at your pay level
| Gross salary | New regime tax before cess | Deductions needed in the old regime |
|---|---|---|
| ₹13,00,000 | ₹25,000 (after marginal relief) | ₹7,37,500 |
| ₹15,00,000 | ₹93,750 | ₹5,94,000 |
| ₹18,00,000 | ₹1,45,000 | ₹6,92,000 |
| ₹20,00,000 | ₹1,85,000 | ₹7,58,500 |
| ₹25,00,000 | ₹3,07,500 | ₹8,50,000 |
| ₹30,00,000 | ₹4,57,500 | ₹8,50,000 |
The deduction figures include the ₹50,000 standard deduction. Few people reach ₹6 to 8 lakh, which needs full 80C, 80D, NPS, home loan interest and a large HRA exemption all at once. That is why the new regime suits most salaried people. At ₹12.75 lakh or less, the new regime costs nothing, so the old regime cannot beat it.
A worked case on ₹20 lakh
Vikram, 41, earns ₹20,00,000 and owns the flat he lives in. His old regime deductions: standard deduction ₹50,000, 80C ₹1,50,000, 80D ₹25,000, home loan interest ₹2,00,000 and NPS ₹50,000. Total ₹4,75,000.
- Old regime: taxable ₹15,25,000. Tax ₹12,500 + ₹1,00,000 + 30% of ₹5,25,000 (₹1,57,500) = ₹2,70,000. With cess: ₹2,80,800.
- New regime: taxable ₹19,25,000. Tax ₹20,000 + ₹40,000 + ₹60,000 + 20% of ₹3,25,000 (₹65,000) = ₹1,85,000. With cess: ₹1,92,400.
- The new regime is cheaper by ₹88,400. He would need about ₹2.84 lakh more in deductions before the old regime catches up.
Income tax old vs new regime slabs side by side
| Income band | Old regime | New regime |
|---|---|---|
| First ₹2,50,000 | Nil | Nil |
| Next ₹1,50,000 (to ₹4,00,000) | 5% | Nil |
| Next ₹1,00,000 (to ₹5,00,000) | 5% | 5% |
| Next ₹3,00,000 (to ₹8,00,000) | 20% | 5% |
| Next ₹2,00,000 (to ₹10,00,000) | 20% | 10% |
| Next ₹2,00,000 (to ₹12,00,000) | 30% | 10% |
| Next ₹4,00,000 (to ₹16,00,000) | 30% | 15% |
| Next ₹4,00,000 (to ₹20,00,000) | 30% | 20% |
| Next ₹4,00,000 (to ₹24,00,000) | 30% | 25% |
| Beyond ₹24,00,000 | 30% | 30% |
The same comparison holds for AY 2027-28, the first return under the 2025 Act's tax year 2026-27, since rates did not change. Full details are on the old regime and new regime pages.
When to decide, and how
- Start of the year: give your employer a declaration of your regime so monthly TDS matches. Without a declaration, the employer deducts TDS as per the new regime.
- At filing: the regime picked in the return decides your tax. If your employer used the other one, the return settles the difference through a refund or extra tax.
- Business income: leaving the new regime needs Form 10-IEA before the due date, and you can return only once.
Searching for "TDS section old vs new"? For FY 2025-26, TDS on salary is covered by section 192 of the 1961 Act; from tax year 2026-27 it moves to section 392 of the 2025 Act. See TDS on salary.
Mistakes when comparing regimes
| Mistake | Better approach |
|---|---|
| Counting deductions you plan but will not make | Enter only what you will actually pay and can prove |
| Forgetting the extra ₹25,000 of standard deduction in the new regime | Use ₹75,000 for the new side and ₹50,000 for the old |
| Ignoring employer NPS | It is allowed in both regimes, so it does not tilt the choice |
| Comparing tax before the rebate | Apply the rebate; it decides most cases up to ₹12.75 lakh |
Both this page and the calculator offer general estimates, not personal tax advice. Rules change from year to year, so before you file, have a chartered accountant check your numbers, or check them on the official e-filing portal.
Sources we checked
- Income-tax Act, 1961, section 115BAC
- Income-tax Act, 2025, section 202
- Finance Act, 2025, First Schedule
- Income-tax Act, 1961, section 192
Frequently asked questions
Which regime is better for income tax?
For most people the new regime, because its lower rates outweigh the lost deductions. The old regime wins only when total deductions are very high, roughly ₹6 to 8.5 lakh for salaries between ₹15 lakh and ₹30 lakh.
What are the income tax slabs for AY 2026-27 in the old and new regime?
Old regime: nil to ₹2.5 lakh, 5% to ₹5 lakh, 20% to ₹10 lakh, 30% above. New regime: nil to ₹4 lakh, then 5%, 10%, 15%, 20%, 25% in ₹4 lakh steps, and 30% above ₹24 lakh.
Can I choose the old regime after my employer deducted TDS under the new regime?
Yes, if you have no business income. Select the old regime in a return filed by the due date and claim your deductions with proof. Any extra TDS comes back as a refund after processing.
Does the calculator include surcharge and cess?
Yes. It adds surcharge for income above ₹50 lakh, capped at 25% in the new regime, and 4% cess on both sides.