Indian salaried taxpayers can usually choose between two regimes. The new regime has lower slab rates and few deductions. The old regime has higher slab rates but lets you claim deductions such as 80C, 80D, NPS and home loan interest. Which one costs less depends on how much you can deduct.
The old vs new tax regime calculator compares them for FY 2026-27 (AY 2027-28). Tax rules change every year, so check the current rules before you file.
The slabs the calculator uses
New regime (taxable income per year):
- Up to Rs 4,00,000: nil
- Rs 4,00,001 to Rs 8,00,000: 5%
- Rs 8,00,001 to Rs 12,00,000: 10%
- Rs 12,00,001 to Rs 16,00,000: 15%
- Rs 16,00,001 to Rs 20,00,000: 20%
- Rs 20,00,001 to Rs 24,00,000: 25%
- Above Rs 24,00,000: 30%
Old regime, for those under 60:
- Up to Rs 2,50,000: nil
- Up to Rs 5,00,000: 5%
- Up to Rs 10,00,000: 20%
- Above Rs 10,00,000: 30%
Senior citizens have higher tax-free limits in the old regime. Both regimes add 4% cess.
A simple comparison
Take a taxable income of Rs 12,00,000 before any old-regime deductions. This example ignores rebates and the standard deduction, so it shows the slab effect only.
- New regime: 4,00,000 x 5% = 20,000, plus 4,00,000 x 10% = 40,000. Tax Rs 60,000. With 4% cess, Rs 62,400.
- Old regime, no deductions: 2,50,000 x 5% = 12,500, plus 5,00,000 x 20% = 1,00,000, plus 2,00,000 x 30% = 60,000. Tax Rs 1,72,500. With cess, Rs 1,79,400.
Now suppose you can claim Rs 6,00,000 of old-regime deductions, so the taxable income is Rs 6,00,000.
- Tax: 12,500 + 1,00,000 x 20% = Rs 32,500. With cess, Rs 33,800.
In this example, the old regime wins only when the deductions are large. That crossover is the break-even.
Finding your break-even
The calculator shows the exact amount of deductions above which the old regime wins. If your deductions are below that number, the new regime is likely cheaper. If they are above it, the old regime may be.
What counts as a deduction
Typical old-regime items include:
- 80C (PF, ELSS, life insurance premium, tuition fees).
- 80D (health insurance).
- NPS contributions.
- Home loan interest.
- HRA exemption. See the HRA exemption guide.
Steps
- Open the old vs new tax regime calculator.
- Enter your yearly income and age group.
- Enter the total deductions you can claim in the old regime.
- Read the tax under each regime and the break-even deduction amount.
- Revisit the choice each year, since your deductions and the rules can change.
This is an estimate, not tax advice. A tax professional can confirm the right choice for you.