Old vs New Tax Regime
IndiaOne question, answered with your numbers: which regime costs you less in FY 2026-27, by how much — and how many rupees of deductions it takes before the old regime wins.
OLD VS NEW REGIME · FY 2026-27
The NEW regime wins for you
saving ₹89,700 a year vs the old regime
New regime tax
₹97,500
Old regime tax
₹1,87,200
Your deductions
₹2.25 L
Break-even deductions
₹5,44,000
Salary + other taxable income for the year, before any deductions.
Old-regime deductions you could claim
Old regime
with ₹2.25 L deductions
New regime
no deductions needed
Your break-even is ₹5,44,000 of old-regime deductions. Below that the new regime wins; above it the old regime starts saving you money. You entered ₹2,25,000.
| FY 2026-27 | Old regime | New regime |
|---|---|---|
| Standard deduction | ₹50,000 | ₹75,000 |
| Other deductions counted | ₹2.25 L | not allowed |
| Taxable income | ₹12,25,000 | ₹14,25,000 |
| Tax from slabs | ₹1,80,000 | ₹93,750 |
| 87A rebate | — | — |
| Health & education cess (4%) | ₹7,200 | ₹3,750 |
| Total tax | ₹1,87,200 | ₹97,500 |
| Effective rate on income | 12.5% | 6.5% |
An estimate, not tax advice: FY 2026-27 (AY 2027-28) slabs, standard deduction (₹50,000 old / ₹75,000 new), 87A rebate and 4% cess for a resident individual under 60. Excludes surcharge above ₹50L, marginal relief and senior-citizen slabs. Statutory caps are applied to 80C/80D/NPS/home-loan interest. Planning your deductions? Try the Tax & Investment Planner.
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Most asked questions
The new regime is the default since FY 2023-24. If you do nothing, your employer deducts TDS on new-regime slabs. You actively opt for the old regime when declaring investments or filing your return.
Salaried taxpayers with no business income can pick either regime each year when filing. If you have business or professional income, you can opt out of the new regime essentially once — switching back later is heavily restricted.
Very few: the ₹75,000 standard deduction on salary, the employer's NPS contribution under 80CCD(2), and a handful of others. 80C, 80D, HRA exemption and home-loan interest on a self-occupied house are old-regime-only — which is exactly why this comparison depends on your deductions.
Section 87A wipes out new-regime tax when taxable income is up to ₹12 lakh (rebate up to ₹60,000) — about ₹12.75 lakh of salary once the ₹75,000 standard deduction is applied. Slightly above that, marginal relief softens the jump.
It's the total old-regime deductions (80C, 80D, HRA, home-loan interest, NPS and the rest, beyond the standard deduction) at which the old regime's tax drops to match the new regime's at your income. Below it, the new regime wins; above it, the old regime starts saving you money.
It's a close estimate for a resident individual under 60 on FY 2026-27 (AY 2027-28) rules — slabs, standard deduction, the 87A rebate and 4% cess. It leaves out the surcharge on incomes above ₹50 lakh, marginal relief and senior-citizen slabs. Confirm with the latest official rules or a professional before filing.