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Old vs New Tax Regime Calculator

Our Tax Regime Calculator operates as an old vs new regime calculator and breakeven deduction calculator. Compare tax slabs side-by-side to find your customized tax-saving threshold.

Tax Regime Calculator
A tax optimization tool that compares tax liabilities under the Old and New Tax Regimes side-by-side.
Breakeven Deduction Threshold
The exact amount of tax deductions required under the Old Regime to match the tax liability of the New Regime.
✓ Updated Budget Slabs
✓ Sec 87A Rebate limits
✓ Breakeven point analysis
✓ 100% free tool
Old vs New Tax Regime Comparator FY 2026-27
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Old Regime Deductions

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Combined maximum tax savings limit: ₹1,500,000.
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Regime Optimization Engine

Input your gross annual income and target tax-saving deductions to generate comparative column charts, verify regime winners, and inspect breakeven limits.

Old vs New Tax Regime Rules for FY 2026-27

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Written by CTC Calculator Editorial Team Reviewed by K. Sharma (Chartered Accountant) | Updated: June 15, 2026

The Major Paradigm Shift: Default Tax System

Starting from FY 2023-24 and continuing with major expansions in **FY 2026-27**, the **New Tax Regime** has been designated as the default tax system in India. If you do not explicitly declare your choice to your employer or file your ITR opting for the Old Regime, your taxes will be automatically calculated and deducted under the New Tax Regime slabs (read our detailed Old vs New Tax Regime comparison guide).

New Tax Slabs FY 2026-27

In the Union Budget, the New Tax Regime slabs were restructured to provide substantial tax relief to middle-income families, making taxable income up to ₹12 Lakhs effectively tax free due to the expanded Section 87A rebate:

  • Up to ₹4,00,000: Nil
  • ₹4,00,001 to ₹8,00,000: 5%
  • ₹8,00,001 to ₹12,00,000: 10%
  • ₹12,00,001 to ₹16,00,000: 15%
  • ₹16,00,001 to ₹20,00,000: 20%
  • ₹20,00,001 to ₹24,00,000: 25%
  • Above ₹24,00,000: 30%

Additionally, salaried employees receive an increased standard deduction of ₹75,000 under the New Regime (up from ₹50,000).

Old Tax Slabs FY 2026-27

The Old Tax Regime slabs remain completely unchanged and continue to reward individuals with heavy home loans, high rent HRA claims, and statutory savings:

  • Up to ₹2,50,000: Nil
  • ₹2,50,001 to ₹5,00,000: 5% (Tax rebate under Sec 87A up to ₹5,00,000)
  • ₹5,00,001 to ₹10,00,000: 20%
  • Above ₹10,00,000: 30%

Salaried employees under the Old Regime receive a standard deduction of ₹50,000.

Related Tools & Guides: Run a complete take-home estimation under both systems using our CTC Calculator or evaluate HRA exemptions under the Old Regime using the HRA Calculator. Read our detailed comparison article Old vs New Tax Regime: Slab Comparison.

Disclaimer: CTC Calculator provides calculations based on standard Indian payroll and tax slabs (Budget FY 2026-27) for educational purposes. Actual structures and deductions may vary based on company policy. Please consult a Chartered Accountant or tax professional for financial decisions.

Calculation Methodology: Calculations run client-side in your browser using pure JavaScript. No personal salary data is transmitted to our servers or stored. EPF calculations default to 12% of basic salary, gratuity is projected at 4.81% of basic, and Professional Tax is based on selected state boundaries.

Calculation Methodology & Statutory Slabs

Our salary intelligence engine runs entirely local client-side scripts in your browser. No private salary figures or professional parameters are transmitted to external servers or logged, guaranteeing absolute data safety. Calculations align with standard Indian corporate payroll systems and regulatory guidelines:

  • Income Tax Slabs (Budget FY 2026-27): Updated to incorporate standard deductions and slabs. Tax calculations default to the New Tax Regime (the national default scheme) but support comparative breakeven projections under the Old Tax Regime. Standard deduction is projected at ₹75,000 for the New Regime and ₹50,000 for the Old Regime.
  • Employees' Provident Fund (EPF): Calculated at the statutory rate of 12% of Basic Salary under the Employees' Provident Fund Scheme, 1952. Support is provided for standard capping (restricted to ₹15,000 basic limit, resulting in ₹1,800/month employee contribution) and uncapped contributions.
  • Gratuity Provision: Projected at 4.81% of Basic Salary (equivalent to 15/26 of basic salary per year of service) under the Payment of Gratuity Act, 1972. Statutory tax exemption is capped at ₹20 Lakhs.
  • Professional Tax (PT): State-wise slabs are based on the latest boundaries and limits enacted by respective state departments.

For more details, please review our Editorial Policy, read our full Disclaimer, or consult a Chartered Accountant for corporate tax planning.

Tax Regime Calculator FAQs

Clear up your doubts about choosing the right tax system for your income and investments

Which tax regime is better for salaried employees?
For salaried individuals with minimal savings or no rent HRA claims, the New Tax Regime is usually much better because of lower tax slabs and a high Section 87A rebate. However, if your annual gross income is above ₹15 Lakhs and you claim deductions (such as HRA, 80C, 80D, and Home Loan interest) totaling more than ₹3.75 Lakhs, the Old Tax Regime will likely save you more tax. Use our breakeven analysis above to find your exact threshold.
Can I claim HRA and Section 80C in the New Tax Regime?
No. Standard HRA exemptions, Section 80C (PPF, EPF, ELSS, LIC), Section 80D (medical premium), and Section 24b (interest on home loans) are completely disallowed under the New Tax Regime. The only major deductions allowed under the New Regime are standard deduction of ₹75,000, employer contribution to NPS (Section 80CCD(2)), and transport allowance for physically disabled employees.
How does Section 87A rebate work under both regimes?
Under the New Tax Regime, if your net taxable income (after standard deduction) is up to ₹12 Lakhs, you receive a full tax rebate of up to ₹60,000, making your tax liability zero. Under the Old Tax Regime, the Section 87A rebate only applies if your taxable income is up to ₹5 Lakhs, with a maximum rebate of ₹12,500.
What is the standard deduction for family pension under the New Regime?
Under the New Tax Regime, family pensioners are eligible for a standard deduction of ₹25,000 or 1/3rd of the pension, whichever is lower. Under the Old Regime, it remains ₹15,000 or 1/3rd of the pension.
How is the custom breakeven deduction threshold calculated?
The breakeven threshold is calculated by setting the tax liability under both regimes equal and back-solving for the required old regime deductions. It represents the exact tipping point where the Old Regime tax matches the New Regime tax. Any additional rupee claimed beyond the breakeven deduction makes the Old Regime the winner.