Old vs New Tax Regime Calculator (FY 2026-27)

Compare income tax liability side-by-side under Old vs New Regime to see exact tax savings.

FY 2026-27 REGIME VERDICT

Old Regime Saves More Tax

With your ₹2,05,800 in planned deductions (including PF, EPF & HRA), Old Regime saves you ₹0 per year (₹0/mo).

Breakeven Deduction Point
₹6.50 L
Need ₹4,44,200 more to favor Old
Want an itemized salary slip with EPF, PT & TDS breakdown?
Calculate In-Hand Monthly Salary →
Quick CTC Presets:
₹
₹0₹3.00 Cr
Statutory Basic Salary (computed at 50% of CTC):₹6.00 L / year (₹50,000 / month)

Old Regime Deductions & Exemptions

Configure your PF, EPF, HRA, NPS, and home loan deductions to see their exact tax-saving impact.

Total Deductions: ₹2.06 L

Section 80C & Retirals (Cap: ₹1,50,000)

Claimed: ₹1.28 L / ₹1,50,000

Auto: 12% basic or ₹21.6k cap

Counted towards ₹1.5L 80C

Tax saving investments

Note:Section 80C deduction is calculated as min(Employee PF + Employer EPF + Other 80C, ₹1,50,000).

National Pension System (NPS) Deductions

Exclusive deduction over and above Section 80C limit

Yearly: ₹0Old cap: 10% basic | New cap: 14% basic

House Rent Allowance (HRA) Exemption

Calculated Exemption: ₹0

Defaults to 50% of basic

Total rent paid to landlord

50% cities: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad

Health, Home Loan & Statutory Retirals

Self + Senior Parents

Self-occupied property interest

No upper monetary ceiling

Eligible charitable donations

Auto: 5% of basic salary

Statutory state PT (typically ₹2,400)

NEW TAX REGIME (FY 2026-27)

Statutory Default
Standard Deduction u/s 16(ia):−₹75,000
Employer NPS 80CCD(2) (14% cap):−₹0
Professional Tax:−₹2,400
Other Deductions (80C, 80D, HRA):Not Applicable
✓ Section 87A Full Rebate: Up to ₹60,000 rebate wipes out 100% tax liability on salaries up to ₹12.75 Lakhs!
Total Annual Tax:₹0
Monthly Tax:₹0 / mo
Monthly, after income tax:₹0 / mo
Annual In-Hand Pay:₹0 / yr

OLD TAX REGIME

With All Deductions
Standard Deduction:−₹50,000
Section 80C (incl. PF & EPF):−₹1.28 L
↳ Employee PF:₹21,600
↳ Employer EPF:₹21,600
↳ Other 80C Investments:₹1.07 L
NPS 80CCD(1B):−₹50,000
Employer NPS 80CCD(2) (10% cap):−₹0
Mediclaim 80D:−₹25,000
HRA Exemption:−₹0
Gratuity & Prof Tax:−₹32,400
Total Annual Tax:₹0
Monthly Tax:₹0 / mo
Monthly, after income tax:₹0 / mo
Annual In-Hand Pay:₹0 / yr

Tax & In-Hand Salary Side-by-Side Comparison

Comparing New Regime vs Old Regime for Total Annual Tax and Monthly In-Hand Cash.

Annual & Monthly Tax Comparison Summary

Old Regime Tax Liability:
₹0 / year₹0 / month
New Regime Tax Liability:
₹0 / year₹0 / month
Old Regime Monthly In-Hand:
₹0 / month₹0 / year
New Regime Monthly In-Hand:
₹0 / month₹0 / year
Net Tax Difference (Annual Savings):
₹0 / year
₹0 / month

Understanding Tax Regime Selection in India

The Old Tax Regime is generally beneficial only when you have substantial statutory deductions and exemptions. If your total deductions fall below the breakeven threshold, the New Tax Regime is mathematically superior due to lower slab rates, an enhanced ₹75,000 standard deduction, and full Section 87A rebate.

When to Choose the Old Tax Regime?

  • High Rent in Metro Cities (HRA Benefit): Paying high rent in Tier-1 metros allows massive HRA exemptions exceeding ₹2 Lakhs to ₹3 Lakhs annually.
  • Full Section 80C Utilization: Maximum ₹1.5 Lakhs claimed through Employee PF, Employer EPF, PPF, and ELSS mutual funds.
  • Section 24(b) Home Loan Interest: Deducting up to ₹2,00,000 per year on self-occupied housing loan interest.
  • Section 80D Health Insurance: Claiming ₹25,000 to ₹1,00,000 for family and senior citizen parents.
  • Section 80CCD(1B) NPS Contribution: Additional ₹50,000 exclusive retirement deduction.

Regime Comparison by Income Level (Benchmark Reference)

Annual CTCRecommended RegimeMin. Deductions for Old Regime*Key Considerations
₹5LNew RegimeNot applicableZero tax either way — the 87A rebate covers it. Choose the new regime and skip the proofs.
₹10LNew Regime₹4.5LThe standard ₹4.75L stack already clears the bar, so the old regime can just win — but only if you genuinely claim all of 80C, 80D, NPS and ₹2L of home-loan interest.
₹15LOld Regime if you pay rent₹5.44LYou are about ₹69,000 short of the usual stack. Rent of roughly ₹12,000 a month covers it. This is where the old regime starts becoming affordable for renters.
₹20LOld Regime if rent is high₹7.09LGap of about ₹2.34L. You need roughly ₹27,800 a month in rent, or the ₹2L home-loan interest plus about ₹2.3L of 80G donations.
₹25LOld Regime with full planning₹8.00LBreak-even settles at ₹8L from here on. Rent of about ₹37,500 a month closes the ₹3.25L gap. Employer NPS is 14% of basic in the new regime against 10% in the old, which trims the old regime's edge.
₹30LOld Regime with full planning₹8.00LSame ₹3.25L gap, now only 11% of CTC. Rent of about ₹39,600 a month covers it, and full metro HRA on a ₹15L basic is worth up to ₹7.5L.
₹35LOld Regime usually wins₹8.00LRent of about ₹41,700 a month closes the gap, well inside what the ₹8.75L HRA ceiling allows. Without rent, a home loan plus donations can still get there.
₹40LOld Regime usually wins₹8.00LThe ₹8L target is only 20% of CTC. Rent of about ₹43,750 a month covers the gap; the HRA ceiling here is ₹10L, so there is plenty of headroom.
₹45LOld Regime usually wins₹8.00LRent of about ₹45,800 a month closes it. At this income the deductions are a smaller share of pay, so the old regime is easier to justify, not harder.
₹50LOld Regime usually wins₹8.00LRent of about ₹47,900 a month covers the ₹3.25L gap. Surcharge begins just above this income, which raises the value of every deduction from here on.
₹55LOld Regime₹4.35LThe 10% surcharge above ₹50L pushes new-regime tax up sharply, so the break-even falls below the standard ₹4.75L stack. The old regime wins on the usual deductions alone, with no rent needed.
₹60LOld Regime₹7.70LSurcharge applies to both regimes now. Rent of about ₹49,600 a month closes the remaining gap, and the ₹15L HRA ceiling leaves ample room.

* Minimum total deductions for the old regime to match the new one, computed from the current slabs. The stack assumed above is the ₹50,000 standard deduction, ₹1.5L under 80C including employee PF, ₹25,000 under 80D, ₹50,000 under 80CCD(1B) and ₹2L of section 24(b) home-loan interest — ₹4.75L in all. Rent figures are what is needed on top of that stack, assuming basic is 50% of CTC and a city where 50% of basic is exempt. HRA exemption is the least of rent less 10% of basic, 50% of basic in the eight notified cities (40% elsewhere), and the HRA actually received. 80G allows 50% or 100% depending on the donee, so a ₹1L donation may count for only ₹50,000. Above ₹50L surcharge applies, which increases what every deduction is worth.

Key Takeaways

  • For CTC up to ₹12.75 Lakhs, New Regime is unbeatable due to ₹0 effective tax.
  • Middle income earners (₹12.75L to ₹25L) benefit more from New Regime unless claiming heavy HRA and housing loan interest.
  • High earners (>₹30L) can achieve significant savings in Old Regime with structured tax planning across 80C, 80D, 24b, and HRA.
  • Salaried individuals filing ITR-1/ITR-2 can switch between Old and New regimes every single year.
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Statutory Guidance

Old vs New Tax Regime Decision FAQs

Answers to common questions when choosing between the two Indian tax regimes.

Can I choose one regime for employer TDS and file my ITR under the other?

Yes. The regime declaration submitted to your employer is solely for monthly payroll TDS estimation. Salaried taxpayers can freely switch between Old and New regimes when filing their final ITR on the Income Tax e-filing portal before July 31st.

What happens if I miss the ITR filing deadline regarding regime selection?

If you file a belated return after the July 31st due date, you automatically lose the option to choose the Old Tax Regime. The Income Tax portal will calculate tax strictly under the default New Tax Regime.

Do freelancers and business owners have the same flexibility to switch regimes each year?

No. Individuals with business or professional income (filing ITR-3 or ITR-4) can opt out of the New Regime once in their lifetime using Form 10-IEA. If they switch back to the New Regime later, they cannot opt back into the Old Regime again.

Does switching to the New Regime mean my EPF or PPF interest becomes taxable?

No. Annual interest earned on your statutory EPF (up to ₹2.5 Lakhs employee contribution) and PPF remains completely tax-free under both regimes.