Old vs New Regime Comparison | AY 2026-27
| Income Slab | Rate | Tax (₹) |
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| Income Slab | Rate | Tax (₹) |
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The Old Regime offers various deductions (80C, 80D, HRA, etc.) with higher tax rates, while the New Regime (default from FY 2023-24) has lower tax rates but removes most deductions. Only a standard deduction of ₹75,000 is available under the New Regime for FY 2025-26.
If your total deductions (80C + 80D + HRA + Home Loan Interest + NPS + others) exceed approximately ₹3-4 lakh, the Old Regime may save you more tax. For lower deductions, the New Regime with its lower slab rates is usually beneficial. Use this calculator to compare both side by side.
Under the New Regime, if your taxable income is up to ₹12,00,000, you get a full rebate (zero tax). Under the Old Regime, the rebate applies if taxable income is up to ₹5,00,000. The rebate effectively makes your tax liability zero if you qualify.
The standard deduction is ₹75,000 under the New Tax Regime and ₹50,000 under the Old Tax Regime for FY 2025-26 (AY 2026-27). This deduction is available to all salaried individuals without requiring any investment proof.
A 4% Health and Education Cess is charged on the total income tax amount (after applying rebate, if any). This cess applies equally to both Old and New Regime and is used to fund health and education initiatives.
Yes, salaried individuals can switch between Old and New Regime every financial year. However, individuals with business income can switch only once from New to Old Regime. The New Regime is the default regime from FY 2023-24 onwards.