Old vs New Tax Regime FY 2026-27
Side-by-side comparison with worked numbers. Skip the guesswork — see which regime saves you the most.
The 30-second answer
- Income up to ₹12 lakh taxable: New Regime always wins (87A rebate makes tax zero).
- Income between ₹12L and ₹15L: New Regime wins unless you have ₹3L+ of deductions (80C + 80D + HRA + home loan interest).
- Income above ₹15L: depends on your deductions. Break-even is roughly ₹3.5–4.5 lakh in total deductions.
- Salaried with HRA + home loan + full 80C: Old Regime usually wins.
- Tech salary, no major deductions: New Regime wins.
Run the exact comparison for your numbers in the Income Tax Calculator.
Side-by-side comparison
| Feature | Old Regime | New Regime |
|---|---|---|
| Standard deduction (salaried) | ₹50,000 | ₹75,000 |
| Section 87A rebate | Up to ₹12,500 (income ≤ ₹5L) | Full rebate up to ₹12L taxable |
| 80C deduction (PPF, ELSS, etc.) | Up to ₹1.5L | Not available |
| 80D (health insurance) | Up to ₹1L | Not available |
| HRA exemption | Available (Sec 10(13A)) | Not available |
| Home loan interest | Up to ₹2L (Sec 24) | Self-occupied: not available |
| NPS 80CCD(1B) | Extra ₹50K | Not available |
| Employer NPS 80CCD(2) | Up to 10% basic | Up to 14% basic |
| Slab structure | 4 slabs (0/5/20/30%) | 7 slabs, lower at all levels |
| Surcharge max | 37% | 25% (capped) |
Worked examples at different income levels
Assumptions: Salaried, age <60, metro resident. Old regime deductions assumed: standard deduction + 80C ₹1.5L + 80D ₹25K + HRA exemption (where applicable). 4% cess included in all numbers.
| Step | Old Regime | New Regime |
|---|---|---|
| Standard deduction | ₹50,000 | ₹75,000 |
| 80C + 80D | ₹1,75,000 | — |
| Taxable | ₹3,75,000 | ₹5,25,000 |
| Tax before rebate | ₹6,250 | ₹6,250 |
| 87A rebate | − ₹6,250 | − ₹6,250 |
| Net tax | ₹0 | ₹0 |
| Step | Old Regime | New Regime |
|---|---|---|
| Standard deduction | ₹50,000 | ₹75,000 |
| 80C + 80D | ₹1,75,000 | — |
| Taxable | ₹7,75,000 | ₹9,25,000 |
| Tax before rebate | ₹67,500 | ₹32,500 |
| 87A rebate | — | − ₹32,500 |
| Net tax (incl. cess) | ₹70,200 | ₹0 |
| Step | Old Regime | New Regime |
|---|---|---|
| Standard deduction | ₹50,000 | ₹75,000 |
| HRA exemption | ₹1,50,000 | — |
| 80C + 80D | ₹1,75,000 | — |
| Taxable | ₹11,25,000 | ₹14,25,000 |
| Tax + 4% cess | ₹1,49,500 | ₹1,17,000 |
| Step | Old Regime | New Regime |
|---|---|---|
| Standard deduction | ₹50,000 | ₹75,000 |
| HRA exemption | ₹3,00,000 | — |
| 80C + 80D | ₹1,75,000 | — |
| Home loan interest | ₹2,00,000 | — |
| Taxable | ₹7,75,000 | ₹14,25,000 |
| Tax + 4% cess | ₹70,200 | ₹1,17,000 |
| Step | Old Regime | New Regime |
|---|---|---|
| Deductions | ₹2,00,000 | ₹75,000 |
| Taxable | ₹23,00,000 | ₹24,25,000 |
| Tax + 4% cess | ₹5,07,000 | ₹3,57,000 |
| Step | Old Regime | New Regime |
|---|---|---|
| Deductions | ₹7,00,000 | ₹75,000 |
| Taxable | ₹43,00,000 | ₹49,25,000 |
| Tax + 4% cess | ₹11,38,000 | ₹11,17,000 |
Decision framework
- Add up your deductions: 80C + 80D + 80CCD(1B) + HRA exemption + home loan interest.
- If total deductions < ₹3 lakh: choose New Regime. Almost always wins.
- If total deductions are ₹3-5 lakh: run the exact numbers in the Income Tax Calculator. Result depends on income.
- If total deductions > ₹5 lakh: Old Regime usually wins, especially for incomes between ₹15-30 lakh.
- If income ≤ ₹12 lakh: New Regime always wins regardless of deductions (87A rebate).
- If income > ₹5 crore: New Regime wins on surcharge alone (37% vs 25%).
Things New Regime takes away
The New Regime does not allow: 80C (PPF/ELSS/insurance/home loan principal), 80D (health insurance), 80CCD(1B) (NPS extra ₹50K), HRA exemption, home loan interest under Section 24 (self-occupied), LTA, professional tax, education loan interest (80E), donations (80G), and most other deductions.
The Old Regime keeps these but charges higher rates at lower slabs.
Practical tip: don't invest just for tax
If the only reason you're investing in PPF / LIC / ELSS is the 80C deduction, the New Regime usually beats the Old once you factor in the lock-in and lower returns of those instruments. Pick the regime first, then invest based on your actual financial goals.
Run your own comparison
GSTBox Income Tax Calculator shows both regimes side-by-side and recommends the winner for your numbers — including HRA exemption, 80C/80D/80CCD(1B), surcharge with marginal relief, and 4% cess.