Old vs new tax regime for FY 2026-27
How the two regimes differ
| FY 2026-27 | Old regime | New regime |
|---|---|---|
| Nil-tax slab | Up to ₹2,50,000 | Up to ₹4,00,000 |
| Standard deduction (salaried) | ₹50,000 | ₹75,000 |
| Rebate — no tax if taxable income is up to | ₹5,00,000 | ₹12,00,000 |
| Highest slab rate | 30% | 30% |
| 80C, 80D, NPS 80CCD(1B), home loan | Allowed | Not allowed |
| HRA exemption | Allowed | Not allowed |
| Highest surcharge | 37% | 25% |
Tax rules for FY 2026-27 · last updated 3 October 2026. Calculations are estimates. Actual salary may vary based on employer payroll structure, exemptions, deductions and state-specific rules.
Compare with your numbers
Salary before tax and deductions — not CTC
Interest, rent received, etc.
Deductible in old regime only
New regime
₹97,500
total tax for FY 2026-27
Old regime
₹2,56,620
total tax for FY 2026-27
| Metric | Old regime | New regimeLower tax |
|---|---|---|
| Gross income | ₹15,00,000 | ₹15,00,000 |
| Standard deduction | ₹50,000 | ₹75,000 |
| Exemptions & deductions | ₹2,500 | ₹0 |
| Taxable income | ₹14,47,500 | ₹14,25,000 |
| Tax on slabs | ₹2,46,750 | ₹93,750 |
| Rebate | ₹0 | ₹0 |
| Cess (4%) | ₹9,870 | ₹3,750 |
| Total tax | ₹2,56,620 | ₹97,500 |
Based on the information entered, the estimated tax liability differs by ₹1,59,120 between the two regimes, with the new regime lower. Your actual liability depends on deductions you can claim. Review both before choosing.
| Income slab | Rate | Taxed amount | Tax |
|---|---|---|---|
| ₹0 – ₹4,00,000 | 0% | ₹4,00,000 | ₹0 |
| ₹4,00,000 – ₹8,00,000 | 5% | ₹4,00,000 | ₹20,000 |
| ₹8,00,000 – ₹12,00,000 | 10% | ₹4,00,000 | ₹40,000 |
| ₹12,00,000 – ₹16,00,000 | 15% | ₹2,25,000 | ₹33,750 |
| Income slab | Rate | Taxed amount | Tax |
|---|---|---|---|
| ₹0 – ₹2,50,000 | 0% | ₹2,50,000 | ₹0 |
| ₹2,50,000 – ₹5,00,000 | 5% | ₹2,50,000 | ₹12,500 |
| ₹5,00,000 – ₹10,00,000 | 20% | ₹5,00,000 | ₹1,00,000 |
| ₹10,00,000 – above | 30% | ₹4,47,500 | ₹1,34,250 |
Deductions needed for the old regime to match
| CTC | Deductions needed |
|---|---|
| ₹10 Lakh | ₹3,81,000 |
| ₹12 Lakh | ₹5,76,000 |
| ₹15 Lakh | ₹5,06,000 |
| ₹20 Lakh | ₹6,62,000 |
| ₹25 Lakh | ₹7,67,000 |
| ₹30 Lakh | ₹7,76,000 |
| ₹40 Lakh | ₹7,76,000 |
| ₹50 Lakh | ₹7,76,000 |
For context, the main capped deductions — 80C (₹1.5 lakh), NPS 80CCD(1B) (₹50,000) and home-loan interest on a self-occupied house (₹2 lakh) — add up to ₹4 lakh, before HRA exemption and health insurance. This is information, not a recommendation; review your own deductions or speak to a tax professional.