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Old vs new regime, decided with your numbers

The new regime has lower rates and almost no deductions; the old regime has higher rates and every deduction. Which wins depends entirely on your rent, investments, and loans — so this platform computes both, side by side, with your inputs.

Compare regimes with my numbers

What it means

For FY 2026-27 the new regime taxes slabs from ₹4L at 5% up to 30% above ₹24L with a ₹75,000 standard deduction and a rebate that zeroes tax up to ₹12L taxable income. The old regime keeps the 5/20/30 structure from ₹2.5L with the full deduction menu.

The formula

Advantage = Net(old, with your deductions) − Net(new)

A break-even exists for every salary: the deduction total at which old overtakes new. Below it, take the new regime's simplicity; above it, the old regime pays for the paperwork.

Worked example

  • ₹20L CTC, no deductions: new regime wins comfortably.
  • Same CTC with ₹3L rent (metro), ₹1.5L 80C, ₹50k NPS, ₹25k 80D: the gap narrows sharply — the optimizer shows whether it flips.
  • The compare page prints both computations in full so you can audit the answer.

How to use it

  1. 1Enter salary and deductions once. The calculator holds your inputs.
  2. 2Open Compare. Both regimes are computed with identical inputs.
  3. 3Check the optimizer. It quantifies unused old-regime levers and issues a verdict.

Frequently asked questions

Which regime is default?

The new regime is the default; you may opt for the old regime when filing (salaried taxpayers can switch yearly).

At what deduction level does the old regime win?

It varies by income. As a rough guide, total deductions (beyond standard) upward of ₹3.5–4.5L are needed at mid incomes — but compute it with your numbers rather than rules of thumb.

Does the ₹12L zero-tax rebate apply to both regimes?

No — the ₹60,000 Section 87A rebate up to ₹12L taxable income (with marginal relief) is a new-regime feature for FY 2026-27; the old regime's rebate is ₹12,500 up to ₹5L.

Related tools & guides

Calculations on this site are based on official government provisions and should be verified against the latest government publications (incometax.gov.in).