Compare your income tax under the old and new regimes for FY 2026–27 (AY 2027–28) and see which saves you more. Enter your salary and any deductions you claim.
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New regime slabs (default)
| Taxable income | Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4–8 lakh | 5% |
| ₹8–12 lakh | 10% |
| ₹12–16 lakh | 15% |
| ₹16–20 lakh | 20% |
| ₹20–24 lakh | 25% |
| Above ₹24 lakh | 30% |
Salaried people get a ₹75,000 standard deduction, and a rebate makes tax nil on taxable income up to ₹12 lakh. So a salary of up to ₹12.75 lakh pays no tax in the new regime. Just above ₹12 lakh, marginal relief means you never pay more tax than the income above ₹12 lakh.
Old regime slabs
| Taxable income (under 60) | Rate |
|---|---|
| Up to ₹2.5 lakh | Nil |
| ₹2.5–5 lakh | 5% |
| ₹5–10 lakh | 20% |
| Above ₹10 lakh | 30% |
The old regime has a ₹50,000 standard deduction and allows deductions such as 80C (up to ₹1.5 lakh), 80D, HRA and home loan interest. The basic exemption is ₹3 lakh for ages 60–79 and ₹5 lakh for 80 and over. Both regimes add 4% health and education cess.
Worked examples
| Salary | New regime tax | Old regime tax* |
|---|---|---|
| ₹12 lakh | ₹0 | ₹1,11,800 |
| ₹15 lakh | ₹97,500 | ₹2,02,800 |
| ₹25 lakh | ₹3,19,800 | ₹5,14,800 |
*Old regime figures assume ₹1.5 lakh of 80C and ₹25,000 of 80D deductions, for someone under 60. In these cases the new regime is cheaper. The old regime usually only wins if you claim large deductions, such as HRA in a big city plus home loan interest.
Budget 2026 made no change to slabs or rates. The new Income-tax Act, 2025 took effect from 1 April 2026 and replaced the 1961 Act, but the slabs stayed the same.
Frequently asked questions
Is income up to ₹12 lakh tax-free?
Yes, in the new regime. A rebate makes tax nil on taxable income up to ₹12 lakh, and with the ₹75,000 standard deduction, salaries up to ₹12.75 lakh pay no tax.
Which regime is better for me?
The new regime is better for most people. The old regime can work out cheaper if your deductions (80C, 80D, HRA, home loan interest and so on) are large. The calculator compares both.
Did Budget 2026 change tax slabs?
No. Slabs and rates for FY 2026–27 are the same as FY 2025–26.
Can I switch regimes?
Salaried people can choose each year when filing their return. People with business income have limited switching.
Sources
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