Income Tax Calculator Old and New Regime (FY 2026-27 & FY 2025-26)
Compare tax liabilities under Section 115BAC New Tax Regime vs Old Tax Regime with updated ₹75,000 standard deduction, Section 87A rebate thresholds up to ₹12.75 Lakhs, slab-by-slab breakdown, and investment breakeven analysis.
Annual Earnings & Deductions
Select a preset profile below or enter custom salary detailsNEW TAX REGIME
⚡ How the Old vs New Tax Regime Calculator Works
Enter Gross Earnings
First, input your annual salary and other taxable incomes. As a result, the engine establishes your baseline gross earnings before deductions.
Declare Eligible Deductions
Next, enter Section 80C, 80D health insurance, home loan interest, and NPS. Consequently, the tool calculates total deductions applicable to the Old Regime.
Apply Standard Deductions & Slabs
After that, the algorithm applies ₹75,000 standard deduction for the New Regime and ₹50,000 for the Old Regime across revised tax brackets (0–4L nil, 4–8L 5%, 8–12L 10%, up to 30%).
Compare Net Tax & Breakeven
Finally, review net tax liability under both regimes, verify Section 87A rebate eligibility (up to ₹60,000), and identify the exact breakeven deduction tipping point.
Old vs New Tax Regime: Key Differences for FY 2026-27 & FY 2025-26
Choosing between the Old Tax Regime and the revised New Tax Regime under Section 115BAC is one of the most critical financial planning decisions for Indian taxpayers. With the revised slabs under Finance Act 2025 (retained for FY 2026-27), the Central Government has sweetened the New Tax Regime with an enhanced ₹75,000 Standard Deduction, widened brackets (0–4L nil, 4–8L 5%, 8–12L 10%, 12–16L 15%, 16–20L 20%, 20–24L 25%, >24L 30%), and a massive Section 87A rebate making income up to ₹12 Lakhs (₹12.75 Lakhs for salaried individuals) completely tax-free.
3-Card Breakdown: Income Slabs, Standard Deductions & Breakeven Tipping Points under Budget 2024
1. The Zero-Tax Threshold: ₹12.75 Lakhs for Salaried Employees
Under the New Tax Regime, Section 87A provides a full tax rebate of up to ₹60,000 for taxable income up to ₹12,00,000. When combined with the enhanced standard deduction of ₹75,000 under Section 16(ia), a salaried employee with a gross total income of up to ₹12,75,000 pays absolutely zero income tax. In contrast, under the Old Regime, the zero-tax threshold remains capped at ₹5,50,000 (₹5,00,000 taxable income after ₹50,000 standard deduction).
2. Breakeven Deduction Tipping Points
Whether you should opt for the Old Regime depends entirely on your total Chapter VI-A deductions (Section 80C, 80D, Section 24(b) home loan interest, NPS under 80CCD(1B), and HRA exemption):
- Gross Income up to ₹12.75 Lakhs: The New Tax Regime is automatically superior because your tax liability is ₹0 with zero locked-in investments.
- Gross Income at ₹15 Lakhs: The breakeven point is ₹5,43,750 of deductions (excluding standard deduction). If your combined eligible deductions exceed ₹5.44 Lakhs, the Old Regime delivers lower tax liability; otherwise, the New Regime wins hands down.
- Gross Income at ₹25 Lakhs and above: The breakeven point climbs to ₹8,00,000 of deductions. Unless you have massive home loan interest, HRA, and medical expenses, the New Regime saves over ₹1.24 Lakhs annually.
3. High Net-Worth Individuals (HNIs) & Surcharge Cap
For affluent taxpayers earning over ₹2 Crore, the New Tax Regime caps the maximum surcharge rate at 25%, bringing the peak effective tax rate down to 39% (compared to 42.74% under the Old Regime with its 37% surcharge on incomes exceeding ₹5 Crore). Model your portfolio rebalancing and surcharge drag with our Portfolio Rebalancing Calculator.
Old Regime vs New Regime: Comprehensive Feature Comparison
| Feature / Parameter | Old Tax Regime | New Tax Regime (Sec 115BAC) | Strategic Advantage |
|---|---|---|---|
| Standard Deduction | ₹50,000 | ₹75,000 (Enhanced Standard Deduction) | New Regime provides an additional ₹25,000 tax-free buffer. |
| Zero-Tax Threshold | ₹5,50,000 Gross | ₹12,75,000 Gross | Salaried earners up to ₹12.75L pay zero income tax under New Regime. |
| Tax Slabs | 0-2.5L Nil 2.5-5L 5% 5-10L 20% >10L 30% |
0-4L Nil 4-8L 5% 8-12L 10% 12-16L 15% 16-20L 20% 20-24L 25% >24L 30% |
New Regime features progressive 5% increments across 7 brackets. |
| Sec 87A Rebate | Up to ₹12,500 (Income ≤ ₹5L) | Up to ₹60,000 (Income ≤ ₹12L) | Full tax immunity for taxable income up to ₹12 Lakhs under New Regime. |
| Section 80C & 80D | Allowed (Up to ₹2.5 Lakhs) | Not Allowed | Old Regime rewards high insurance, EPF, and PPF allocations. |
| Home Loan Interest 24(b) | Deduction up to ₹2,00,000 | Not Allowed (Self-Occupied) | Homeowners with heavy EMIs often save significantly under Old Regime. |
| Peak Surcharge Rate | 37% (> ₹5 Crore) | Capped at 25% | High-income earners enjoy a 3.74% lower peak effective tax bracket. |
| Default Tax System | Optional (Must opt in) | Default Regime | New Regime applies automatically unless explicitly opted out in ITR. |
🛠️ More Helpful Tools & Calculators
📋 Regulatory References & Data Sources
- Income Tax Act 1961, Proviso to Section 2(1)(a) — Statutory Marginal Relief on Surcharge
- Finance Act 2024 — Surcharge slabs for FY 2024-25 / AY 2025-26 under Section 115BAC
- Central Board of Direct Taxes (CBDT) Circular No. 04/2024 on TDS and surcharge thresholds
- Income Tax Department of India Notification on Section 87A rebate and surcharge parity
- Proviso to Section 115BAC(1A) — marginal relief under the new tax regime
Disclaimer: This calculator is for educational and planning purposes only. It does not constitute financial advice. Consult a SEBI-registered investment advisor for personalised guidance. Tax rules are updated as per the latest Finance Act — verify with a qualified CA before filing.