Which tax regime should I choose for AY 2026-27?

It depends on your deductions. The new regime is the default and is usually better if you claim few deductions, thanks to lower slabs and zero tax up to Rs 12 lakh. The old regime can win if you have large 80C, 80D, HRA or home-loan-interest claims. This calculator computes both and shows which is lower for your numbers.

Is income up to Rs 12 lakh tax-free?

For FY 2025-26 (AY 2026-27), the Section 87A rebate makes taxable income up to Rs 12 lakh tax-free under the new regime. For salaried taxpayers, the Rs 75,000 standard deduction raises the effective tax-free salary to about Rs 12.75 lakh.

Does this calculator include cess and surcharge?

Yes. It adds the 4% health and education cess to both regimes, and applies surcharge for higher incomes, with the new-regime surcharge capped at 25%. It is an estimate for normal slab income and does not cover capital gains taxed at special rates.

Income Tax Calculator 2026 (AY 2026-27): Old vs New Regime

Old vs New Regime Tax Calculator

Compare your income tax under the new and old regime in seconds for FY 2025-26 (AY 2026-27) and FY 2024-25 (AY 2025-26). Enter your income, pick your age and add deductions to see which regime saves you more.

Your details

Financial year

Age group (affects old-regime exemption)

Annual income (gross, before deductions)

I am salaried / a pensioner (adds standard deduction)

Deductions & exemptions

Allowed under both regimes

Employer's NPS — 80CCD(2) employer's contribution to NPS

Other allowed 80CCH (Agniveer), family pension 57(iia)

Old regime only

Section 80C PF, ELSS, LIC, PPF — max ₹1.5L

Section 80D Health insurance

NPS 80CCD(1B) max ₹50k

Home loan interest 24(b) max ₹2L

HRA / other exemptions

Your estimated tax

Enter your income to see the comparison.

New regime DEFAULT

₹0

Total tax payable

Old regime WITH DEDUCTIONS

₹0

Total tax payable

Get expert help filing your ITR

How this works & assumptions. This is an estimate for a resident individual with normal slab income. The new regime applies the standard deduction of ₹75,000 (salaried), any employer-NPS contribution under Section 80CCD(2) you enter, and the Section 87A rebate that makes income up to ₹12 lakh tax-free for FY 2025-26 (up to ₹7 lakh for FY 2024-25), with marginal relief just above the limit. The old regime applies your deductions, a ₹50,000 standard deduction (salaried) and the ₹12,500 rebate up to ₹5 lakh. Both include 4% health & education cess and surcharge for higher incomes (new-regime surcharge is capped at 25%). It does not cover capital gains taxed at special rates, presumptive business income, or every exemption. This is a guide, not tax advice — confirm with a qualified professional before filing.

How to choose between the old and new regime

The new tax regime is the default for AY 2026-27. It has lower slab rates and makes income up to ₹12 lakh tax-free, but it removes most deductions. The old regime keeps deductions like 80C, 80D, HRA and home-loan interest but has higher slabs. As a rule of thumb, the more you claim in deductions, the more likely the old regime wins — this calculator settles it with your actual numbers. For a deeper explanation, read our guide on new vs old tax regime in 2026 and our complete ITR filing guide for AY 2026-27.

Once you know your regime, our Saket team can handle the filing end to end — see ITR filing & tax advisory, or book a free consultation.

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