Free tools · Calculator · 2 minutes

Old regime or new: which costs you less?

Enter your income and the deductions you actually claim. We work out the tax both ways for 2026-27 and show you the gap.

SEBI Registered Investment Adviser · INA000020572 · Fee-only, zero commissions

Your income

₹
Gross salary from your payslip or offer letter. Leave out the employer's PF and NPS contributions.
₹
Interest, rent, freelance income. Not capital gains, which are taxed separately.
Your age

Deductions you claim

These only count in the old regime. Enter what you really invest or pay, not the maximum.

₹
EPF, PPF, ELSS, life premium, home loan principal, tuition. Up to ₹1.5 lakh.
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Up to ₹25,000 for your family, more with senior parents.
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Up to ₹50,000, over and above 80C.
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Up to ₹2 lakh on a home you live in.
₹
The exempt part, from your Form 16 or payroll portal.
₹
Education loan interest, donations, LTA and so on.
The new regime saves you ₹0

Taxable income, new regime₹0
Taxable income, old regime₹0
Deductions you entered₹0
Deductions needed for the old regime to win₹0

Slabs and limits are for tax year 2026-27, for a resident individual. The figures include the 4% cess, the rebate for lower incomes and surcharge above ₹50 lakh, but not marginal relief on surcharge. Capital gains and other income taxed at special rates are left out.

Questions

Which tax regime is better for a salaried person?

For most salaried people, the new regime now costs less, because its rates are lower and income up to ₹12 lakh carries no tax. The old regime wins only when your deductions are large, typically a home loan, HRA and full 80C together. The calculator shows the exact deductions you would need.

What are the new regime tax slabs for 2026-27?

Nil up to ₹4 lakh, 5% from ₹4 lakh to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh, 20% to ₹20 lakh, 25% to ₹24 lakh and 30% above that. A rebate makes taxable income up to ₹12 lakh tax-free, and salaried people get a standard deduction of ₹75,000.

Which deductions are allowed in the new regime?

Very few. The standard deduction of ₹75,000 and your employer's contribution to NPS under 80CCD(2) both apply. 80C, 80D, HRA and home loan interest on a home you live in do not.

Can I switch between the old and new regime every year?

If your income is from salary, yes. You choose each year, and the final choice is made when you file your return. If you have business or professional income, moving back to the old regime is restricted.

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This page is for education. It shows an illustration built from the numbers and assumptions you enter. It is not investment, tax or legal advice, and it does not take your full circumstances into account. Rates of return are assumptions, not promises. Tax rules change, so check the current rules or speak to an advisor before you act.

Invsify Technologies Private Limited is a SEBI Registered Investment Adviser, Registration No. INA000020572. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Past performance is not indicative of future results.