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.
Only the Old Regime changes with age: no tax up to ₹2.5 lakh below 60, ₹3 lakh at 60–79 and ₹5 lakh at 80 or more. The New Regime is the same at every age. At 60 or more your own 80D limit is also ₹50,000.
Starts at 50% of your salary; change it to match your payslip. That is ₹50,000 a month.
Old Regime Deductions & Exemptions
Configure your PF, HRA, NPS, and home loan deductions to see their exact tax-saving impact.
Total Deductions: ₹2.27 L
PF & Section 80C (₹1,50,000 cap; employer PF not included)
Claimed: ₹1.50 L / ₹1,50,000Auto: 12% of basic; counts in 80C
Company's share — not part of 80C
Tax saving investments
Note: Section 80C = min(Employee PF + Other 80C, ₹1,50,000). Employer EPF is not part of 80C: up to 12% of basic it is not taxed at all, in either regime.
National Pension System (NPS) Deductions
Exclusive deduction over and above Section 80C limit
House Rent Allowance (HRA) Exemption
Calculated Exemption: ₹0Defaults 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
₹25,000 each for you and your parents; ₹50,000 for a side that is 60+
Self-occupied property interest
No upper monetary ceiling
The amount you gave
Most charities and trusts: yes, the donation counts only up to 10% of your income after other deductions. PM CARES, the PM’s National Relief Fund and the National Defence Fund: no cap.
Auto: 4.81% of basic (15/26 of a month's basic per year)
Statutory state PT (typically ₹2,400; capped at ₹2,500)
FY 2026-27 REGIME VERDICT
New Regime is More Beneficial
New Regime saves you ₹79,920 per year (₹6,660/mo) with simplified tax calculations and zero investment lock-in.
- Net Tax Difference (Annual Savings):
- ₹79,920 / year
- ₹6,660 / month
Annual & Monthly Tax Comparison Summary
NEW TAX REGIME (FY 2026-27)
Statutory Default- Employer PF & gratuity (in CTC, not taxed):
- −₹1.01 L
- Standard Deduction u/s 16(ia):
- −₹75,000
- Employer NPS 80CCD(2) (14% cap):
- −₹0
- Professional Tax:
- Not Applicable
- Other Deductions (80C, 80D, HRA):
- Not Applicable
✓ Section 87A: your new-regime tax is zero. The rebate of up to ₹60,000 covers taxable income up to ₹12 lakh, which is ₹12.75 lakh of salary after the ₹75,000 standard deduction.
- Total Annual Tax:
- ₹0
- Monthly Tax:
- ₹0 / mo
- Monthly in-hand (after PF, PT & tax):
- ₹85,395 / mo
- Annual In-Hand Pay:
- ₹10.25 L / yr
OLD TAX REGIME
With All Deductions- Employer PF & gratuity (in CTC, not taxed):
- −₹1.01 L
- Standard Deduction:
- −₹50,000
- Section 80C (incl. employee PF):
- −₹1.50 L
- ↳ Employee PF:
- ₹72,000
- ↳ Other 80C Investments:
- ₹1.50 L
- NPS 80CCD(1B):
- −₹50,000
- Employer NPS 80CCD(2) (10% cap):
- −₹0
- Mediclaim 80D:
- −₹25,000
- HRA Exemption:
- −₹0
- Professional Tax:
- −₹2,400
- Total Annual Tax:
- ₹79,920
- Monthly Tax:
- ₹6,660 / mo
- Monthly in-hand (after PF, PT & tax):
- ₹78,735 / mo
- Annual In-Hand Pay:
- ₹9.45 L / yr
Breakeven Deduction Point
₹5.50 L
Need ₹3,22,600 more to favor Old
Want an itemized salary slip with EPF, PT & TDS breakdown?
Tax & In-Hand Salary Side-by-Side Comparison
Comparing New Regime vs Old Regime for Total Annual Tax and Monthly In-Hand Cash.
Old vs new regime formula, with your numbers
Old regime: taxable income A = salary income ₹10,99,140 + retiral perquisite ₹0 − deductions ₹2,77,400, rounded to the nearest ₹10 = ₹8,21,740
Old regime: X = slab tax ₹76,848 − Section 87A rebate ₹0 + surcharge ₹0 + 4% cess ₹3,074, rounded to the nearest ₹10 (−₹2) = ₹79,920
New regime: taxable income B = salary income ₹10,99,140 + retiral perquisite ₹0 − deductions ₹75,000, rounded to the nearest ₹10 = ₹10,24,140
New regime: Y = slab tax ₹42,414 − Section 87A rebate or marginal relief ₹42,414 + surcharge ₹0 + 4% cess ₹0, rounded to the nearest ₹10 (+₹0) = ₹0
Salary income is CTC less gratuity and employer PF up to 12% of basic, the same in both regimes; only the deductions differ. Each regime's tax is its slab tax, less the Section 87A rebate (and, in the new regime only, marginal relief just above ₹12 lakh), plus surcharge above ₹50 lakh and 4% cess. A positive difference is what the new regime saves you each year; a negative one is what the old regime saves.
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 your own (employee) PF, 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: ₹25,000 each for you and your parents, ₹50,000 for a side that is 60 or older — ₹1,00,000 only when you and your parents are all senior citizens.
- Section 80CCD(1B) NPS Contribution: Additional ₹50,000 exclusive retirement deduction.
Regime Comparison by Income Level (Benchmark Reference)
| Annual CTC | Recommended Regime | Min. Deductions for Old Regime* | Key Considerations |
|---|---|---|---|
| ₹5L | New Regime | Not applicable | Zero tax either way — the 87A rebate covers it. Choose the new regime and skip the proofs. |
| ₹10L | New Regime | ₹3.66L | New-regime tax is already zero here. The old regime also reaches zero only with ₹3.66L of deductions, so switching gains nothing — stay in the new regime. |
| ₹15L | Old Regime if you pay rent | ₹5.13L | About ₹88,000 more than the usual ₹4.25L stack. Rent of roughly ₹13,600 a month covers it. This is where the old regime starts to pay for renters. |
| ₹20L | Old Regime if rent is high | ₹6.53L | A gap of about ₹2.28L over the stack. You need roughly ₹27,400 a month in rent, or other deductions of that size such as 80G donations. |
| ₹25L | Old Regime with full planning | ₹7.70L | A gap of about ₹3.45L. Rent of about ₹39,200 a month closes it. Employer NPS is 14% of basic in the new regime against 10% in the old for a private employer, which trims the old regime's edge. |
| ₹30L | Old Regime with full planning | ₹8.00L | Break-even settles at ₹8L from here. The ₹3.75L gap is 12.5% of CTC; rent of about ₹43,800 a month covers it, well inside the ₹7.5L HRA ceiling on a ₹15L basic. |
| ₹35L | Old Regime usually wins | ₹8.00L | Rent of about ₹45,900 a month closes the ₹3.75L gap, inside the ₹8.75L HRA ceiling. Without rent, the gap has to come from other deductions. |
| ₹40L | Old Regime usually wins | ₹8.00L | The ₹8L target is 20% of CTC. Rent of about ₹48,000 a month covers the gap; the HRA ceiling here is ₹10L, so there is plenty of headroom. |
| ₹45L | Old Regime usually wins | ₹8.00L | Rent of about ₹50,000 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. |
| ₹50L | Old Regime usually wins | ₹8.00L | Rent of about ₹52,100 a month covers the ₹3.75L gap. Taxable income is still under ₹50L in both regimes, so no surcharge yet. |
| ₹55L | Old Regime usually wins | ₹8.00L | Rent of about ₹54,200 a month covers the gap. Salary after employer PF and gratuity is just over ₹50L, but taxable income in both regimes stays below the surcharge line. |
| ₹60L | Old Regime | ₹4.32L | The 10% surcharge above ₹50L of taxable income pushes new-regime tax up, so the break-even drops to ₹4.32L — about ₹7,000 above the usual stack. Rent above roughly ₹25,600 a month, or a small 80G donation, closes it. |
* Minimum deductions, beyond the ₹50,000 standard deduction everyone gets, for the old regime to match the new one, computed from the current slabs. CTC is split as on the calculator: basic 50%, with employer PF (12% of basic) and gratuity (4.81% of basic) removed before tax. The stack assumed is ₹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 — ₹4.25L in all. Rent figures are what is needed on top of that stack in 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 of taxable income surcharge applies, which increases what every deduction is worth.
Key Takeaways
- For CTC up to about ₹13.9 Lakhs (₹12.75 Lakhs of gross salary, with basic at 50%), New Regime is unbeatable due to ₹0 effective tax.
- Middle income earners (₹13.9L to ₹25L CTC) 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.
References
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