Old vs new tax regime
The new regime has lower rates but almost no deductions; the old regime is the reverse. Which one wins depends entirely on how much you can actually claim. This works out both, on the rules in force for FY 2026-27.
Are you salaried or a pensioner?
Only salaried taxpayers and pensioners get the standard deduction — ₹75,000 in the new regime, ₹50,000 in the old.
Age
Affects the old regime's exemption limit only. The new regime has one slab set for everyone.
Old-regime deductions
These count only under the old regime. The new regime allows almost none of them.
ELSS, PPF, EPF, life insurance premium, principal on a home loan, children's tuition. Capped at ₹1.5 lakh.
Section 24(b), capped at ₹2 lakh for a self-occupied property.
Over and above the ₹1.5 lakh 80C limit.
Better for you
New regime
You would pay ₹1,05,300 less tax for the year — ₹97,500 instead of ₹2,02,800.
New regime
₹97,500
Effective rate 6.5%
Old regime
₹2,02,800
Effective rate 13.5%
How each is worked out
| Step | New | Old |
|---|---|---|
| Gross income | ₹15,00,000 | ₹15,00,000 |
| Deductions | ₹75,000 | ₹2,25,000 |
| Taxable income | ₹14,25,000 | ₹12,75,000 |
| Tax on slabs | ₹93,750 | ₹1,95,000 |
| Health & education cess (4%) | ₹3,750 | ₹7,800 |
| Total tax | ₹97,500 | ₹2,02,800 |
Your break-even
Before you act on this
The rules applied here
- New regime, FY 2026-27: nil up to ₹4 lakh, then 5%, 10%, 15%, 20%, 25% and 30% above ₹24 lakh. Standard deduction ₹75,000 for salaried taxpayers and pensioners. Section 87A gives a full rebate up to ₹60,000 for taxable income up to ₹12 lakh — which is why a salary up to ₹12.75 lakh can come out at nil tax.
- Marginal relief is applied just above the ₹12 lakh threshold, so earning one rupee more can never cost you more than one rupee of tax.
- Old regime: nil up to ₹2.5 lakh (₹3 lakh at 60+, ₹5 lakh at 80+), then 5%, 20% and 30%. Standard deduction ₹50,000, Section 87A rebate up to ₹12,500 for taxable income up to ₹5 lakh.
- Surcharge is applied above ₹50 lakh, capped at 25% in the new regime and rising to 37% above ₹5 crore in the old. Health and education cess of 4% is added to both.
Important — This calculator is an illustration based on the assumptions you enter. It is not a projection or guarantee of returns, and it does not account for exit loads, stamp duty or the taxes payable on redemption. Actual returns will differ. Please consult us before acting on any figure shown here.
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