FY 2026-27 Tax Slabs (AY 2027-28)
Old vs New Tax Regime Calculator India
Compare your exact income tax liability under both regimes with ₹75,000 standard deduction in New Regime and full 80C/80D/HRA deductions in Old Regime.
Your Income & Deductions
New Tax Regime Saves You Money!
You will save approximately ₹15,600 in taxes by selecting the New Tax Regime.
Direct Comparison Table
| Component | New Regime (Default) | Old Regime |
|---|---|---|
| Gross Income | ₹12,00,000 | ₹12,00,000 |
| Standard Deduction | ₹75,000 | ₹50,000 |
| Other Exemptions & Deductions | ₹0 (Not allowed) | ₹3,45,000 |
| Net Taxable Income | ₹11,25,000 | ₹8,05,000 |
| Base Income Tax | ₹68,750 | ₹73,500 |
| Surcharge (Income > ₹50L) | ₹0 | ₹0 |
| Marginal Relief (Section 89 Tax Protection) | ₹0 | ₹0 |
| Health & Education Cess (4%) | ₹2,750 | ₹2,940 |
| Total Tax Payable | ₹71,500 | ₹76,440 |
FY 2026-27 New Regime Slab Breakdown
Sec 87A Rebate up to ₹7LUnder FY 2026-27, standard deduction is ₹75,000. If your net taxable income is ₹7,00,000 or below, your net payable tax is ₹0.
₹0 - ₹3L
0%
0%
₹0
₹3L - ₹7L
5%
5%
₹0
₹7L - ₹10L
10%
10%
₹0
₹10L - ₹12L
15%
15%
₹0
₹12L - ₹15L
20%
20%
₹0
> ₹15L
30%
30%
₹0
Section 87A Full Tax Relief Active: Total taxable income is ≤ ₹7,00,000, reducing your effective base tax from 5% to ₹0!
Salary Breakeven Matrix (Old vs New Regime FY 2026-27)
Standard Deduction ₹75k vs ₹50kTo make the Old Tax Regime beneficial over the default New Tax Regime, your total eligible deductions (80C + 80D + HRA + Sec 24b Home Loan Interest) must strictly exceed the breakeven threshold below:
| Gross Salary (CTC) | New Regime Tax (₹75k Std Ded) | Old Regime Tax (Base) | Breakeven Deductions Needed | Verdict |
|---|---|---|---|---|
| ₹7.75 Lakh | ₹0 (87A Rebate) | ₹33,800 | ₹2,75,000 | New Regime 100% Tax-Free |
| ₹10.00 Lakh | ₹44,200 | ₹80,600 | ₹2,62,500 | Old Regime if deductions > ₹2.62L |
| ₹12.00 Lakh | ₹71,500 | ₹1,32,600 | ₹3,12,500 | Old Regime if deductions > ₹3.12L |
| ₹15.00 Lakh | ₹1,19,600 | ₹2,10,600 | ₹3,87,500 | Old Regime if deductions > ₹3.87L |
| ₹20.00 Lakh | ₹2,36,600 | ₹3,66,600 | ₹4,25,000 | Old Regime if deductions > ₹4.25L |
| ₹25.00 Lakh | ₹3,92,600 | ₹5,22,600 | ₹4,25,000 | Old Regime if deductions > ₹4.25L |
*Note: Includes 4% Health & Education Cess. Salaried standard deduction is factored as ₹75,000 in New Regime and ₹50,000 in Old Regime.
Statutory Authority & Calculation Methodology
This calculation engine runs deterministic mathematical models computed in strict compliance with:
- Section 115BAC of the Income Tax Act, 1961: Revised default progressive tax brackets and enhanced ₹75,000 standard deduction under Section 16(ia) for salaried employees.
- Section 87A Rebate: Complete tax forgiveness for total taxable income up to ₹7,00,000 under the New Tax Regime.
- Section 89 / Chapter VI-A Deductions: Surcharge thresholds (10% to 25%), Marginal Relief tax protection, and Chapter VI-A deductions under Old Regime.
Official Source: Income Tax Department of India (incometaxindia.gov.in).
Frequently Asked Questions: Old vs New Tax Regime
Yes. A salaried employee earning ₹7,75,000 gross annual income receives an automatic ₹75,000 standard deduction, reducing their net taxable income to ₹7,00,000. Under Section 87A of the New Tax Regime, taxable income up to ₹7 Lakh receives a full tax rebate, bringing net tax payable to exactly ₹0.
The breakeven threshold depends on your gross salary. For a ₹10 Lakh CTC, you need more than ₹2,62,500 in deductions. For ₹12 Lakh CTC, you need over ₹3,12,500. For ₹15 Lakh CTC and above, you generally need eligible deductions (such as ₹1.5L in 80C, ₹50k in 80D, HRA exemption, and ₹2L home loan interest) exceeding ₹3,87,500 to ₹4,25,000 to save more money under the Old Regime.
Yes. Salaried individuals without income from business or profession have the flexibility to switch between the Old and New Tax Regimes every financial year at the time of filing their Income Tax Return (ITR) under Section 139(1).
No. Under Section 115BAC (New Tax Regime), House Rent Allowance (HRA) under Section 10(13A) and self-occupied Home Loan interest under Section 24(b) are not permissible. Only standard deduction (₹75,000) and employer NPS contribution under Section 80CCD(2) up to 14% of basic are allowed.