Income Tax Slab Comparison 2026-27
Compare income tax under old and new tax regime for AY 2027-28. Find out which regime is better for you.
About this calculator
Tax Slab Comparison puts the old and new regime for FY 2026-27 next to each other for a salaried taxpayer. You enter gross income and the main deductions, and it shows the standard deduction, other deductions and the final tax with cess under each regime, along with which one is better and by how much.
It focuses on the deductions most salaried people actually have: Section 80C, HRA, home loan interest under Section 24(b), health insurance under 80D, and NPS or other deductions. That makes it a quick way to answer one question honestly: do my deductions justify staying in the old regime?
How to use it
- Enter your Gross Annual Income.
- Fill in the deductions you will actually claim: 80C, HRA exemption, home loan interest, 80D and other.
- The comparison table updates and shows tax under both regimes.
- Read the line at the bottom for the better regime and the saving.
What changes between the regimes
The old regime allows a ₹50,000 standard deduction plus HRA, 80C (up to ₹1.5 lakh), 80D, home loan interest up to ₹2 lakh for a self-occupied house, NPS and others, then taxes at 5, 20 and 30% above ₹2.5 lakh. The new regime allows only a ₹75,000 standard deduction (and employer NPS), with lower rates across wider slabs and a rebate that makes income up to ₹12 lakh tax-free. Both add 4% cess.
Worked example
Gross ₹15,00,000 with 80C ₹1.5 lakh and 80D ₹25,000
| Item | Old / New |
|---|---|
| Standard deduction | ₹50,000 / ₹75,000 |
| Other deductions (old) | ₹1,75,000 |
| Tax with cess, old regime | ₹2,02,800 |
| Tax with cess, new regime | ₹97,500 |
| Saving with new regime | ₹1,05,300 |
Even with ₹1.75 lakh of deductions the new regime saves about ₹1.05 lakh. Add a home loan interest claim of ₹2 lakh and the gap narrows but the new regime still leads at this income.
Tips and common mistakes
- Count only deductions you will really claim and can document.
- If your total old-regime deductions are small, the new regime almost always wins above ₹12 lakh.
- At incomes below roughly ₹12.75 lakh the new regime is usually free of tax, which no old-regime deduction can beat.
- Employer NPS contributions are deductible under the new regime too, which narrows the gap further.
- Recheck after every raise or a change in rent or loan.
Frequently asked questions
How do I decide between old and new regime?
Compute both. If the old regime's tax is lower after all your real deductions, choose it. Otherwise choose the new regime and enjoy the lower paperwork.
What deductions does the new regime allow?
The standard deduction of ₹75,000 for salaried individuals, employer contribution to NPS under 80CCD(2) and a few others such as the Agniveer fund. Most Chapter VI-A deductions and HRA are not allowed.
Is the new regime the default?
Yes. You are in the new regime unless you opt for the old one.
Can I switch every year?
Salaried individuals can choose each year. Taxpayers with business income have restrictions on switching back to the old regime.
Does the comparison include surcharge?
The comparison includes 4% cess. At incomes above ₹50 lakh surcharge applies, and the income tax calculator handles it fully.
Which assessment year is this?
FY 2026-27, assessed in AY 2027-28.