Income Tax Old vs New Regime Calculator

Compare your income tax liability under the old and new tax regimes side by side for FY 2026-27, and see which regime saves you more.

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This calculator computes your tax under both the old and new regimes for the same income and tells you which one results in lower tax.

Gross annual income *

₹

Deductions under old regime (Section 80C, etc.)

₹

Only affects the old-regime figure — capped at ₹1,50,000.

Your result

₹0

Tax under New Regime

Tax under Old Regime₹1,17,000

Savings by choosing New Regime₹1,17,000

Recommended regimeNew Regime

AI explanation

Formula

Computes slab-wise tax independently for both regimes on the same income, then compares

Worked example

₹12,00,000 gross income with ₹1,50,000 old-regime deductions

Worked example: ₹12,00,000 gross income with ₹1,50,000 old-regime deductions
Field	Value
Gross annual income	1200000
Deductions under old regime (Section 80C, etc.)	150000
Tax under New Regime	0
Tax under Old Regime	117000
Recommended regime	New Regime

Assumptions

Applies to individuals below 60 years of age.
Old regime deductions are modeled as a single Section 80C-style figure capped at ₹1,50,000 — HRA, 80D, and other individual sections are not modeled separately.
Surcharge (above ₹50 lakh taxable income) is not included.

Frequently asked questions

How does this calculator decide which regime is better?

It computes tax independently for the same gross income under both regimes' actual FY 2026-27 slabs and deduction rules, then compares the two totals — whichever is lower is recommended.

Does the comparison include HRA or home loan interest deductions?

No — only a single Section 80C-style deduction figure is modeled for the old regime. If you claim HRA exemption or home loan interest deduction, your actual old-regime tax may be lower than shown here.

Can the recommendation change if my deductions change?

Yes — the old regime becomes relatively more attractive as your eligible deductions increase. Try different deduction amounts to see the crossover point for your income.

Related calculators

Sources

Union Budget 2026 — income tax provisions summary — Government of India (via cleartax.in secondary summary). Effective 01-04-2026, reviewed 12-09-2026.

This comparison uses simplified deduction modeling for the old regime and does not include surcharge or every available exemption. It is an estimate for comparison purposes, not tax advice — consult a qualified tax professional for your specific situation.

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