New regime or old regime?
The new regime has lower rates and a bigger standard deduction, but almost no other deductions. The old regime has higher rates but lets you subtract HRA, 80C, 80D, NPS, home loan interest and more. Which one costs less depends on how much you can claim. The calculator works out both, and also shows roughly how much you would need to claim before the old regime wins at your income.
Salaried people can choose their regime every year when they file their return. Tell your employer which one you want at the start of the year so the right amount of TDS is deducted.
New regime slabs, 2026-27
| Taxable income (new regime) | Rate |
|---|---|
| up to ₹4 lakh | 0% |
| ₹4 lakh – ₹8 lakh | 5% |
| ₹8 lakh – ₹12 lakh | 10% |
| ₹12 lakh – ₹16 lakh | 15% |
| ₹16 lakh – ₹20 lakh | 20% |
| ₹20 lakh – ₹24 lakh | 25% |
| above ₹24 lakh | 30% |
- Standard deduction for salaried people: ₹75,000.
- Rebate: tax is nil if taxable income is up to ₹12 lakh (rebate of up to ₹60,000). Just above that, marginal relief caps your tax at the amount by which your income exceeds ₹12 lakh. The rebate does not cover special-rate income such as capital gains.
- Surcharge: 10% above ₹50 lakh, 15% above ₹1 crore, and 25% above ₹2 crore (the new regime’s maximum), each with marginal relief.
Old regime slabs, 2026-27
| Taxable income (old regime, below 60) | Rate |
|---|---|
| up to ₹2.5 lakh | 0% |
| ₹2.5 lakh – ₹5 lakh | 5% |
| ₹5 lakh – ₹10 lakh | 20% |
| above ₹10 lakh | 30% |
- Senior citizens (60 to 79) pay nothing up to ₹3 lakh; those 80 and older pay nothing up to ₹5 lakh.
- Standard deduction: ₹50,000. Rebate: tax is nil if taxable income is up to ₹5 lakh (rebate of up to ₹12,500).
- Surcharge: 10%, 15%, 25% and 37% above ₹50 lakh, ₹1 crore, ₹2 crore and ₹5 crore.
Both regimes add a 4% health and education cess on tax plus surcharge. Income and tax are rounded to the nearest ₹10. Budget 2026-27 did not change these slabs, and the Income-tax Act, 2025, in force from 1 April 2026, kept the same rates under new section numbers.
Not covered: capital gains and other special-rate income, agricultural income, business income, and deductions for employer NPS contributions.
Sources
- Income Tax Department: tax rates for individuals
- Union Budget 2026-27
- Income Tax Department: Income-tax Act, 2025 in force from 1 April 2026 (PDF)
- e-Filing portal: objective and scope of the new Act (FAQ)
Figures last checked against these sources on 4 November 2026. This tool gives an estimate for planning, not tax, legal or financial advice.