Old regime or new? For most salaried and small-business taxpayers it is the only tax decision that matters, and it should be made with numbers, not habit. This calculator computes your liability for FY 2026-27 (AY 2027-28) under both regimes side by side — slab tax, rebate under Section 87A, standard deduction, surcharge with marginal relief and 4% cess — and tells you the break-even level of deductions at which the old regime starts to win. It runs entirely in your browser.
The FY 2026-27 slabs
New regime (default):
| Taxable income | Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4–8 lakh | 5% |
| ₹8–12 lakh | 10% |
| ₹12–16 lakh | 15% |
| ₹16–20 lakh | 20% |
| ₹20–24 lakh | 25% |
| Above ₹24 lakh | 30% |
Rebate under 87A wipes out tax for taxable income up to ₹12 lakh (maximum rebate ₹60,000), with marginal relief just above it. Standard deduction for salaried taxpayers is ₹75,000, so a salary of ₹12.75 lakh is tax-free. Employer NPS contribution (up to 14% of basic) is deductible; most other deductions are not.
Old regime: basic exemption ₹2.5 lakh (₹3 lakh for 60+, ₹5 lakh for 80+), then 5% to ₹5 lakh, 20% to ₹10 lakh, 30% above; rebate of ₹12,500 up to ₹5 lakh; standard deduction ₹50,000; plus 80C (₹1.5 lakh), 80D, HRA, home-loan interest, 80CCD(1B) and the rest.
Both regimes add 4% health and education cess, and surcharge from ₹50 lakh (10%), ₹1 crore (15%), ₹2 crore (25%) and — old regime only — ₹5 crore (37%). The Income Tax Act 2025 that took effect on 1 April 2026 renumbers sections but keeps these rates; what it does change is covered in Income Tax Act 2025: what actually changes.
How to use the calculator
- Enter salary (gross, before deductions) or business/professional income, plus other income such as interest or rent.
- Fill in the deductions you actually claim — 80C, 80D, HRA exemption (compute it with the HRA exemption calculator), home-loan interest, NPS, professional tax.
- Set your age band for the old-regime exemption limit.
- Read both liabilities, the difference, and the break-even deductions figure — the total deductions you need for the old regime to be cheaper.
- If you are salaried, tell payroll your choice in April; business taxpayers who opt out of the new regime must file Form 10-IEA and can switch back only once.
Who should still consider the old regime
The new regime wins for most people with deductions below roughly ₹4–4.5 lakh at higher incomes, and for almost everyone up to ₹12.75 lakh salary. The old regime can still win if you stack a large HRA exemption in a metro, ₹2 lakh home-loan interest, ₹1.5 lakh 80C, ₹50,000 NPS and ₹25,000–75,000 of health premiums. The full comparison with the crossover table is in Old vs new tax regime for FY 2026-27, and whether 80C investments still make sense when your tax is already nil is discussed in ₹12 lakh tax-free: should you still invest in 80C?.
Business and freelance income
Freelancers under 44ADA declare 50% of gross receipts (up to ₹75 lakh if cash receipts are under 5%) as income; small businesses under 44AD declare 6–8% of turnover (up to ₹3 crore). Enter that presumptive income here as business income. Remember advance tax: presumptive taxpayers pay 100% by 15 March, others in four instalments — use the advance tax calculator. Which return you file is answered in Which ITR form to file.
Related tools
- HRA exemption calculator — the biggest old-regime deduction for renters.
- Advance tax calculator — instalments for FY 2026-27.
- In-hand salary calculator — monthly take-home after TDS under your chosen regime.
- TDS calculator — for payments you make or receive.
- SIP calculator — if you redirect old 80C money into plain investments.