Last reviewed: 20 August 2026. With the AY 2026-27 ITR filing deadline extended to 31 August 2026 and the same slab structure carrying into the running FY 2026-27, this is the one number most of our clients want first: old regime or new, and what do I actually owe? Most calculators online get the easy part right and the hard part wrong — they apply the wrong Section 87A marginal relief near the Rs 12 lakh cliff, ignore Section 80CCD(2)'s different caps under each regime, or lump capital gains into the slab computation when they should be taxed separately. This one does not. Enter your numbers once and see both regimes side by side, plus an estimated monthly take-home.
How this calculator works
If you want the concepts explained first, our old vs new regime break-even guide and Income-tax Act 2025 regime explainer cover the reasoning with fixed illustrative examples. This tool is the companion to those — plug in your own numbers instead of reading someone else's example. Three things most free calculators skip, that this one does not:
- Section 87A marginal relief, correctly. Under the new regime, net taxable income up to Rs 12,00,000 pays nil tax via rebate. Between Rs 12,00,000 and roughly Rs 12,70,588, tax is capped at the amount by which income exceeds Rs 12 lakh — not the full slab-computed tax. The same logic applies under the old regime around its Rs 5,00,000 rebate cliff (relief zone up to about Rs 5,15,625).
- Section 80CCD(2) with the correct, regime-specific cap. Employer NPS contribution is deductible in both regimes, but the cap is 14% of basic salary under the new regime (both private and government employees) versus only 10% of basic salary for private-sector employees under the old regime (government employees get 14% either way).
- Capital gains kept separate from the slab race. STCG on equity (20%) and LTCG on equity above the Rs 1,25,000 exemption (12.5%) are taxed at flat rates regardless of regime and are not eligible for the slab-rate rebate — the calculator adds them on top rather than blending them into your slab comparison.
Running a business or professional practice instead of drawing a salary? Enter your net income after regular business deductions here, but check our presumptive taxation guide first if you qualify under Section 44AD/44ADA/44AE — that computation happens before this calculator's stage.
New vs old regime at a glance — AY 2026-27 / FY 2026-27
| Item | New regime | Old regime |
|---|---|---|
| Slabs | 0-4L nil, 4-8L 5%, 8-12L 10%, 12-16L 15%, 16-20L 20%, 20-24L 25%, above 24L 30% | 0-2.5L nil, 2.5-5L 5%, 5-10L 20%, above 10L 30% (senior/super-senior get a higher exempt slab) |
| Standard deduction | Rs 75,000 | Rs 50,000 |
| Section 87A rebate | Up to Rs 60,000 (income up to Rs 12L) | Up to Rs 12,500 (income up to Rs 5L) |
| 80C / 80D / HRA / home loan interest | Not available | Available, each within its own cap |
| 80CCD(2) employer NPS | Up to 14% of basic salary | Up to 10% (private) / 14% (government) of basic salary |
| Surcharge cap on regular income | 25% (income above Rs 5 crore) | 37% (income above Rs 5 crore) |
Old vs New Regime Calculator — AY 2026-27
Enter your numbers once; the tool computes both regimes side by side, applies Section 87A marginal relief correctly, and estimates take-home. Capital gains are taxed separately from your slab income in both regimes.
1. Income & profile
2. Deductions — used only under the old regime
3. Employer NPS contribution — Section 80CCD(2), allowed in both regimes
| Old regime | New regime | |
|---|---|---|
| Net taxable income | - | - |
| Tax on slab income | - | - |
| Surcharge | - | - |
| Capital gains tax (if any) | - | - |
| Cess (4%) | - | - |
| Total tax payable | - | - |
| Estimated take-home / month | - | - |
Estimates for planning only — surcharge marginal relief near Rs 50L/1Cr/2Cr/5Cr thresholds is not modelled here; get an exact figure from us if you're close to one of those. Not a substitute for filing your actual ITR.
Worked examples
Example 1 — light deductions, new regime wins. Gross income Rs 18,50,000 (salary Rs 18,00,000 + other income Rs 50,000), basic+DA Rs 9,00,000, claiming Rs 1,50,000 (80C) + Rs 25,000 (80D) + Rs 50,000 (80CCD(1B)) + Rs 1,20,000 (HRA) + Rs 2,00,000 (home loan interest) + Rs 20,000 (other) + Rs 90,000 employer NPS. Old regime: net taxable income Rs 11,45,000, tax Rs 1,62,240. New regime: net taxable income Rs 16,85,000, tax Rs 1,42,480. New regime wins by about Rs 19,760.
Example 2 — heavy deductions, old regime wins. Gross income Rs 15,00,000, basic+DA Rs 7,00,000, claiming Rs 1,50,000 (80C) + Rs 25,000 (80D) + Rs 50,000 (80CCD(1B)) + Rs 3,00,000 (HRA, high-rent city) + Rs 2,00,000 (home loan interest), no employer NPS. Old regime: net taxable income Rs 7,25,000, tax Rs 59,800. New regime: net taxable income Rs 14,25,000, tax Rs 97,500. Old regime wins by about Rs 37,700 — a reminder that a high HRA claim in an expensive rental city can flip the comparison decisively.
NPS employer contribution — the one deduction both regimes share
If your employer contributes to your NPS account under a corporate NPS scheme, that contribution (Section 80CCD(2)) is deductible whichever regime you pick, which makes it one of the few genuine "have it both ways" levers left after the new regime removed most deductions. The cap difference is real money: on a Rs 10,00,000 basic salary, the new-regime cap is Rs 1,40,000 versus the old regime's Rs 1,00,000 for a private-sector employee — a Rs 40,000 larger deduction simply for choosing the new regime, on top of whatever the slab comparison already favours.
Common mistakes taxpayers make comparing regimes
- Comparing gross tax without standard deduction — the Rs 75,000 vs Rs 50,000 gap alone can tip a close call.
- Forgetting that capital gains are taxed at flat rates in both regimes and don't benefit from the 87A rebate the way slab income does.
- Assuming the choice is permanent — salaried individuals can switch regimes every year; only those with business/professional income face the one-time-switch restriction (see FAQ).
- Applying the private-sector 10% NPS employer cap even under the new regime, where it is actually 14%.
- Not re-running the comparison after a salary revision, a new home loan, or a change in HRA — the better regime can flip year to year.
Frequently asked questions
Which regime is better — old or new tax regime?
There is no single answer; it depends entirely on how much you claim under Chapter VI-A. If your combined 80C, 80D, home loan interest, HRA exemption and NPS deductions comfortably exceed roughly Rs 4.5-5.5 lakh (the exact crossover shifts with income level), the old regime usually wins. With fewer deductions, the new regime's wider slabs and Rs 75,000 standard deduction typically win. Run both numbers — that is exactly what the calculator on this page does — rather than assuming either way.
Is income up to Rs 12 lakh really tax-free under the new regime?
Only if that is your entire net taxable income after standard deduction, and only for slab-rate income — not for short-term or long-term capital gains, which are taxed separately at flat rates regardless of your total income. Up to Rs 12,00,000 of slab-rate net taxable income, the Section 87A rebate (up to Rs 60,000) brings tax to nil. Between Rs 12,00,000 and roughly Rs 12,70,588, marginal relief caps the tax at the amount by which income exceeds Rs 12 lakh — most online calculators skip this and overstate tax in that narrow band.
Does the new regime allow any deductions at all?
Very few. The standard deduction of Rs 75,000 applies, and Section 80CCD(2) — your employer's contribution to your NPS account, up to 14% of basic salary for both private-sector and government employees — is allowed in the new regime too. Popular deductions like 80C, 80D, HRA exemption and home loan interest on a self-occupied property are not available under the new regime.
What is Section 80CCD(2) and why does the calculator ask for it separately?
It is the deduction for your employer's own contribution to your NPS account — separate from and in addition to any NPS contribution you make yourself. It is one of the only deductions common to both regimes, but the cap differs: up to 14% of basic salary (plus DA, where applicable) under the new regime for both private and government employees, but only 10% of basic salary under the old regime for private-sector employees (government employees get 14% under either regime). Asking for it separately lets the calculator apply the correct cap for each regime rather than lumping it in with 80C.
Are capital gains taxed differently from my salary income?
Yes. Short-term capital gains on listed equity/equity mutual funds (Section 111A) are taxed at a flat 20%, and long-term capital gains on the same (Section 112A) at 12.5% on the amount above the Rs 1,25,000 annual exemption — in both cases regardless of which regime you pick and regardless of your slab. They sit outside the regime comparison and are simply added to your final tax; the calculator handles this separately rather than folding capital gains into the slab-rate comparison.
I'm a business owner or professional, not salaried — does this calculator still work for me?
Yes, for the regime-comparison and tax-liability math — enter your net business/professional income (after regular business deductions, before Chapter VI-A) in the income field. Two caveats specific to business income: once you opt for the new regime as a business/professional taxpayer, switching back to the old regime in a later year is restricted (unlike salaried individuals, who can switch every year), and if you are eligible for presumptive taxation under Section 44AD/44ADA, that computation happens before this calculator's deductions stage — see our separate presumptive taxation guide for that step.
What if my income is well above Rs 50 lakh — does the calculator apply surcharge marginal relief?
The calculator applies the standard surcharge rates (10% above Rs 50 lakh, 15% above Rs 1 crore, 25% above Rs 2 crore, capped at 25% under the new regime and rising to 37% above Rs 5 crore under the old regime) but does not model marginal relief at those surcharge thresholds, since it depends on the exact mix of slab versus capital-gains income and is genuinely easy to get subtly wrong in a generic tool. If your income sits within a percent or two of Rs 50 lakh, Rs 1 crore, Rs 2 crore or Rs 5 crore, get an exact figure from us rather than relying on the estimate here.
Can I switch between old and new regime every year?
Salaried individuals with no business income can choose either regime freely each year at the time of filing, simply by selecting it in the ITR. If you have business or professional income, the position is more restrictive: you can switch from new to old regime only once in your lifetime after having opted out, and once you revert to the old regime after that one switch, you cannot go back to the new regime again if you continue to have business income (with a narrow exception if you cease to have business income).
We handle regime selection, full ITR preparation, tax audit and notice replies for salaried individuals, professionals and business owners.
Income tax filing Tax audit services Notice management Talk to usThis calculator gives planning estimates based on AY 2026-27 / FY 2026-27 slabs, standard deductions and Section 87A rebate rules as reviewed on 20 August 2026. It does not model surcharge marginal relief near the Rs 50L/1Cr/2Cr/5Cr thresholds, and it is not a substitute for filing your actual return or for professional advice on your specific facts. Related reading: Section 87A Rebate AY 2026-27: The Rs 12 Lakh Limit, HRA Exemption Calculator and Advance Tax Calculator FY 2026-27.