Old vs New Tax Regime Calculator
Short answer
Last checked · 6 key figures from the fact register
Key facts
| Fact | Value | Source | Date checked |
|---|---|---|---|
| New tax regime slabs | Nil up to ₹4L; 5% ₹4-8L; 10% ₹8-12L; 15% ₹12-16L; 20% ₹16-20L; 25% ₹20-24L; 30% above ₹24L; plus 4% cess Reported by reputable sources | Motilal Oswal: new vs old regime after Budget 2026 (opens in a new tab) | |
| Old tax regime slabs (below 60) | Nil up to ₹2.5L; 5% ₹2.5-5L; 20% ₹5-10L; 30% above ₹10L; plus 4% cess Reported by reputable sources | Motilal Oswal: new vs old regime after Budget 2026 (opens in a new tab) | |
| Standard deduction on salary | ₹75,000 (new regime); ₹50,000 (old regime) Reported by reputable sources | TaxGuru: new tax regime provisions under the Income-tax Act, 2025 (opens in a new tab) | |
| Section 87A rebate (now s.156) | Old: up to ₹12,500 if income is ₹5L or less. New: up to ₹60,000 if income is ₹12L or less Official source | Income Tax Department: Section 156 (opens in a new tab) | |
| Section 80C limit (now s.123) | ₹1.5 lakh; old regime only Reported by reputable sources | Muktify: is Section 80C gone under the new Income-tax Act (opens in a new tab) | |
| Employer NPS deduction (80CCD(2), now s.124) | Up to 14% of salary (Central or State Government employer, or new regime), 10% for others; own NPS ₹50,000 Official source | Income Tax Department: Section 124 (opens in a new tab) |
Salaried taxpayers in India choose between the old regime (many deductions, higher slab rates) and the new regime (lower slab rates, few deductions). This calculator compares both on the same salary using FY 2026-27 slabs, the standard deduction, the Section 156 (formerly 87A) rebate with marginal relief in the new regime, and 4% cess.
New regime saves you ₹60,060
New regime
- Tax — old regime
- ₹1,57,560
- Tax — new regime
- ₹97,500
- Taxable income — old
- ₹11,30,000
- Taxable income — new
- ₹14,25,000
How it is calculated
- Taxable income = Gross − standard deduction − eligible deductions
- Old regime: ₹50,000 standard deduction, HRA, Section 123 (80C), other deductions, employer NPS.
- New regime: ₹75,000 standard deduction and employer NPS only.
- Slabs: FY 2026-27, plus 4% cess and the Section 156 (formerly 87A) rebate. The new regime has marginal relief just above the rebate limit; the old regime does not. Surcharge is not modelled.
Estimates for information only; not financial, tax or legal advice.
Worked example
Example (the default inputs): gross ₹15,00,000, HRA exemption ₹1,20,000, 80C ₹1,50,000 and other deductions ₹50,000. Old regime taxable income ₹11,30,000 gives tax of about ₹1,57,560. New regime taxable income ₹14,25,000 gives about ₹97,500. The new regime saves roughly ₹60,060.
Frequently asked questions
Which regime is the default?
The new regime is the default. You must opt for the old regime if you want its deductions.
Is employer NPS allowed in the new regime?
Yes. The employer NPS deduction (Section 124, formerly 80CCD(2)) is allowed in both regimes.
Does this include surcharge?
No. Very high incomes attract surcharge, which is not modelled. The Section 156 rebate is included, with marginal relief just above the new-regime limit. The old regime has a rebate but no marginal relief. Use your employer's computation or a Chartered Accountant for the final figure.
Related perks
- HRA (House Rent Allowance) Tax Exemption
- Employer NPS Contribution Tax Benefit (Section 124, formerly 80CCD(2))
Sources and status
Each figure on this page comes from the fact register. What the badges mean.
- Reported by reputable sourceschecked 2026-10-16
New regime (s.202(1)): up to 4L nil; 4-8L 5%; 8-12L 10%; 12-16L 15%; 16-20L 20%; 20-24L 25%; above 24L 30%, plus 4% cess. Budget 2026 made no change
- Reported by reputable sourceschecked 2026-10-16
Old regime (below age 60): up to 2.5L nil; 2.5-5L 5%; 5-10L 20%; above 10L 30%, plus 4% cess
- Reported by reputable sourceschecked 2026-10-16
Standard deduction on salary: 75,000 (new regime), 50,000 (old regime). Section 19(1), Table Sl. 2
TaxGuru: new tax regime provisions under the Income-tax Act, 2025
- Official sourcechecked 2026-10-16
Section 156 (formerly 87A) rebate. Old regime: up to 12,500 if income is 5L or less. New regime: up to 60,000 if income is 12L or less, with marginal relief above 12L (s.156(2)(b))
- Reported by reputable sourceschecked 2026-10-16
Section 123 (formerly 80C): limit 1.5 lakh, list in Schedule XV. Old regime only
- Official sourcechecked 2026-10-16
Section 124 (formerly 80CCD). Employer NPS: up to 14% of salary for Central or State Government employers, 10% for others, and 14% for all employers when the employee is taxed under s.202(1) (new regime). Own contribution (old 80CCD(1B)) 50,000 under s.124(3). Salary means basic plus DA if the terms of employment say so
Government employee? Find your salary by pay level and see 8th Pay Commission scenarios.
Estimates for information only; not financial, tax or legal advice. Disclaimer.