Old vs new tax regime calculator
Enter your salary and old-regime deductions to see which regime gives lower tax for AY 2026-27. This calculator is built for regular salaried income and is meant as a planning aid before you verify numbers on the income-tax portal.
Estimated saving: ₹1,40,400
Common old-regime deduction limits
Use this as a quick guide while entering the deduction total. Eligibility still depends on the exact section rules and documents available in your Form 16 / Form 12BB records.
| Benefit | Typical old-regime limit | Notes |
|---|---|---|
| HRA exemption | No fixed rupee cap | Lowest of actual HRA, rent paid minus 10% of salary, or 40%/50% of salary depending on city. Needs rent proof where applicable. |
| 80C / 80CCC / 80CCD(1) | Combined ₹1,50,000 | Includes EPF, PPF, ELSS, life insurance premium, tuition fees, principal repayment of home loan and similar eligible payments. |
| NPS 80CCD(1B) | Additional ₹50,000 | Separate from the ₹1.5 lakh 80C/80CCC/80CCD(1) combined limit. |
| 80D health insurance | ₹25,000 each for self/family and parents; ₹50,000 if senior citizen | Preventive health check-up up to ₹5,000 is included within the applicable limit, not over and above it. |
| Home-loan interest | Usually up to ₹2,00,000 for self-occupied purchase/construction | Lower ₹30,000 limit can apply for repair/older cases. Let-out property rules differ; set-off of house-property loss has limits. |
Source basis: Income Tax Department salaried-individual guidance for AY 2026-27. Verify final eligibility on the income-tax portal or with a CA.
Detailed comparison
| Item | New regime | Old regime |
|---|
How to use this during Form 16 season
Form 16 gives you salary, taxable income and TDS as reported by your employer. Before filing the return, many salaried taxpayers need one practical answer: does the old regime still save tax after deductions, or is the default new regime better?
Start with your gross salary. Add regular income such as bank interest under other income. Then enter deductions and exemptions that are useful only under the old regime: HRA, Section 80C, Section 80D, NPS 80CCD(1B), eligible home-loan interest and similar items.
If you pay rent and receive HRA, calculate the exemption first using the HRA exemption calculator, then include that exemption in the old-regime deductions/exemptions input above.
Why the answer changes by person
The new regime has lower slab rates, a ₹75,000 standard deduction for salaried users and a large Section 87A rebate for eligible resident individuals. The old regime has higher rates, but lets you use deductions and exemptions. If your old-regime deductions are small, the new regime often wins. If your old-regime deductions are large, the old regime can still be better.
What this calculator does not cover
- Capital gains taxed at special rates, including equity STCG/LTCG.
- Surcharge and marginal relief above ₹50 lakh income.
- Business or professional income and Form 10-IEA decisions.
- Foreign assets, foreign income, ESOP deferral or complex residential status cases.
Use the result as a working estimate. The final return should be checked against Form 16, AIS/TIS, Form 26AS and the official income-tax portal.
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FAQs
Which tax regime is default for AY 2026-27? v
The new tax regime is the default regime. Salaried taxpayers without business income can generally choose between old and new regime every year while filing the return before the due date.
What standard deduction does this calculator use? v
For AY 2026-27, this calculator uses ₹75,000 standard deduction in the new regime and ₹50,000 in the old regime for salaried individuals.
Does the new tax regime allow 80C and HRA? v
Most common deductions and exemptions such as 80C, 80D, HRA and home-loan interest for self-occupied property are old-regime benefits. This calculator applies the deduction field only to the old regime.
Can this replace filing on the income tax portal? v
No. This is an educational estimate for regular salaried income. Verify the final numbers on the income-tax portal or with a qualified tax professional, especially if you have capital gains, foreign assets, business income or surcharge-level income.