Old vs New Tax Regime Calculator — AY 2026-27

Enter your salary and your Old-regime deductions to compare the Old and New regime side by side for Assessment Year 2026-27 (income earned in FY 2025-26). The calculator tells you which regime is lower and by how much. Everything runs in your browser — nothing you type is sent anywhere.

How the comparison works

The two regimes are computed on different taxable incomes. Under the New regime your taxable income is gross salary minus the ₹75,000 standard deduction — most other deductions are not available. Under the Old regime it is gross salary minus the ₹50,000 standard deduction and your other eligible deductions (80C, 80D, HRA, home-loan interest, NPS, and so on). The relevant slab rates are applied to each, the Section 87A rebate is subtracted where you qualify, and surcharge plus the 4% cess are added. The lower of the two totals is the regime that costs you less.

When each regime wins

The New regime has lower slab rates and a larger standard deduction, but few deductions. With the enhanced 87A rebate, taxable income up to ₹12,00,000 is tax-free, so it tends to win for people who do not claim much. The Old regime has higher rates but lets you reduce your taxable income with deductions — so the more you legitimately claim (rent via HRA, a home loan, a full ₹1.5 lakh of 80C, health insurance under 80D), the more likely it is to come out ahead. Read the full picture in Old vs New Tax Regime.

The break-even deduction

For any given salary there is a break-even level of Old-regime deductions at which both regimes produce the same tax. Below it, the New regime is usually cheaper; above it, the Old regime is. Because the slabs differ, the break-even moves with your income — the simplest way to find yours is to type your salary above and try a few deduction figures, watching the verdict flip from "New is lower" to "Old is lower". See the 80C & 80D guide and HRA exemption for what you can include in that deductions figure.

What this comparison leaves out

• Senior-citizen basic exemptions, the full HRA computation, and capital-gains special rates.
• Income beyond salary (house property, business, capital gains, etc.).
• TDS already deducted, which affects the balance payable rather than the liability itself.

Frequently asked questions

When does the Old regime beat the New regime?

The Old regime tends to win once your eligible deductions (80C, 80D, HRA, home-loan interest, NPS and so on) are large enough to offset its higher slab rates. The more you can legitimately claim, the more attractive the Old regime becomes. Enter your salary and your total Old-regime deductions above to see the comparison for your figures. This is illustrative — your figures depend on your actual income and deductions.

What is the break-even deduction between the two regimes?

The break-even is the level of Old-regime deductions at which both regimes produce the same tax. Below it the New regime is usually lower; above it the Old regime is usually lower. It varies with your income, so the most reliable way to find it is to try a few deduction figures in the calculator and watch the verdict flip.

Does this calculator file my return or switch my regime?

No. It only estimates and compares. MyTaxLocker prepares a ready-to-upload ITR JSON from your Form 16, which you then upload to the official Income Tax e-Filing portal yourself. Choosing or switching your regime is something you declare on the portal or to your employer; the app does not file or submit anything on your behalf.

Is the New regime the default for AY 2026-27?

Yes. For AY 2026-27 the New regime is the default unless you opt for the Old regime. With the enhanced Section 87A rebate, taxable income up to ₹12,00,000 is tax-free under the New regime, which makes it the better choice for many people who do not have large deductions.