Old vs New Tax Regime Calculator

⚡ In shortWhich tax regime is cheaper for you? Enter your salary and your actual deductions — HRA, home-loan interest, 80C/80D and NPS — and this tool compares the old and new regimes for AY 2026-27 and shows the exact saving. The new regime has a ₹75,000 standard deduction and makes income up to ₹12 lakh effectively tax-free via the section 87A rebate, but disallows most deductions. The old regime has a ₹50,000 standard deduction and lets you claim HRA exemption, home-loan interest under section 24(b) (up to ₹2 lakh), 80C (up to ₹1.5 lakh), 80D and the NPS 80CCD(1B) deduction (up to ₹50,000). This tool folds in all of those, computes the tax under both regimes (including 4% cess), and tells you which one is cheaper and by how much — so the more deductions you genuinely claim, the more likely the old regime wins.

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How it is calculated

The new regime has a ₹75,000 standard deduction and makes income up to ₹12 lakh effectively tax-free via the section 87A rebate, but disallows most deductions. The old regime has a ₹50,000 standard deduction and lets you claim HRA exemption, home-loan interest under section 24(b) (up to ₹2 lakh), 80C (up to ₹1.5 lakh), 80D and the NPS 80CCD(1B) deduction (up to ₹50,000). This tool folds in all of those, computes the tax under both regimes (including 4% cess), and tells you which one is cheaper and by how much — so the more deductions you genuinely claim, the more likely the old regime wins.

Frequently asked questions

Is the new tax regime always better?

No. The new regime wins when you have few deductions. If you claim large HRA, home-loan interest and 80C/80D/NPS deductions, the old regime can be cheaper — this calculator compares your actual numbers under both.

What deductions does the old regime allow that the new one doesn't?

HRA exemption, home-loan interest under section 24(b), 80C (LIC/ELSS/PPF/etc.), 80D health insurance, and the NPS 80CCD(1B) deduction — none of which the new regime allows (except employer NPS 80CCD(2)).

Is income up to ₹12 lakh tax-free under the new regime?

Yes — for AY 2026-27 the section 87A rebate makes income up to ₹12 lakh effectively tax-free under the new regime (a salaried person's break-even is a little higher with the ₹75,000 standard deduction).

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

A salaried person with no business income can choose the regime each year while filing. Those with business or professional income have restrictions on switching back to the new regime once they opt out.

Related reading

India Law Simplified is an AI-assisted tool, not a substitute for a licensed CA or advocate. Tax rules and limits change with each Finance Act — verify before relying on any figure.