New vs Old Regime: Which One Saves You More?
FY 2026-27 makes the New Regime the default. But "default" doesn't always mean "cheaper." Enter your numbers below and the calculator decides for you.
Income-Bracket Decision Table
Quick rule of thumb before you crunch numbers. The New Regime wins in most brackets because of the wider 0% band (₹0–₹4L vs ₹0–₹2.5L) and the massive ₹75K standard deduction. But heavy deductions can swing it.
| Taxable Income | New Regime Wins? | When Old Wins |
|---|---|---|
| ₹0 – ₹4L | Always New | Never. 0% rate in New Regime (vs 5% after ₹2.5L in Old). |
| ₹4L – ₹8L | Usually New | Old can win if you have ₹1.5L 80C + HRA metro + 80D ₹25K. Marginal, ~₹5K–15K difference. |
| ₹8L – ₹12L | Usually New | Old wins if deductions exceed ₹3.75L (80C 1.5L + HRA 1.5L + 80D 25K + 80CCD(1B) 50K + PT 25K). |
| ₹12L – ₹12.75L | New wins (rebate band) | Rebate 87A makes tax ₹0 up to ₹12L. Marginal relief between ₹12L–₹12.75L. Very hard for Old to beat. |
| ₹12.75L – ₹16L | New usually wins | Old wins if heavy deductions push you below New Regime slab. Check with calculator. |
| ₹16L – ₹20L | Depends on deductions | ₹16L+ is where Old Regime deductions start to matter. If total deductions > ₹4L, Old may win. |
| ₹20L+ | Depends on deductions | HRA metro + 80C ₹1.5L + 80D ₹50K + Home Loan ₹2L + NPS = Old can save ₹20K–₹80K+. |
* This table is a rule of thumb. Use the calculator below for your exact numbers. Amounts exclude cess (4%).
Regime Comparator Calculator
Enter your salary details and deductions. The calculator computes tax under both regimes and shows you the winner — with exact savings.
Surcharge & Cess Impact
Both regimes add 4% Health & Education Cess on (tax + surcharge). Surcharge kicks in at higher incomes:
| Total Income | Surcharge Rate | New Regime Cap |
|---|---|---|
| Up to ₹50L | Nil | — |
| ₹50L – ₹1Cr | 10% | 10% |
| ₹1Cr – ₹2Cr | 15% | 15% |
| ₹2Cr – ₹5Cr | 25% | 25% |
| Above ₹5Cr | 37% (Old) / 25% (New) | 25% cap |
New Regime caps surcharge at 25% regardless of income. Old Regime goes up to 37% above ₹5Cr. This alone can save ₹1L+ for very high earners.
Edge Cases & Gotchas
If you're paying rent and relying on HRA exemption — that's only available in the Old Regime. Switching to New means your full rental outgo is ignored. Run the calculator with your rent to see if the slab savings outweigh losing HRA.
PPF, ELSS, LIC, home loan principal — none of these reduce tax in the New Regime. Only employer NPS (80CCD(2)) and 80CCD(1B) survive. If your 80C is maxed at ₹1.5L, that's ₹1.5L × your slab rate of savings you lose by going New.
New Regime SD is ₹75,000 vs Old's ₹50,000 — a ₹25,000 advantage. At 20% slab, that's ₹5,000 extra saving. At 30%, it's ₹7,500. This alone narrows the gap for many taxpayers.
In the New Regime, if your taxable income is ≤₹12L (after SD), you pay zero tax via Rebate 87A. This is the single biggest win for salaried employees earning ₹12–13L. Even ₹12.1L triggers marginal relief — you don't jump to a full slab, but you start paying ~₹1,000+. The sweet spot is ₹12L exactly.