New vs Old Tax Regime Comparison — Tax Year 2026/27

Enter your CTC and Old Regime deductions below to instantly see which tax regime puts more money in your pocket.

Your Salary Details

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Old Regime Deductions
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New Tax Regime saves you more

You save ₹87,157 more in taxes annually by choosing the New Regime.

New Regime

Best
₹1,01,577
Monthly In-Hand
Annual In-Hand₹12,18,921
Income Tax-₹79,357
Taxable Income₹13,08,700
Standard Deduction₹75,000

Old Regime

₹94,314
Monthly In-Hand
Annual In-Hand₹11,31,764
Income Tax-₹1,66,514
Taxable Income₹11,58,700
Standard Deduction₹50,000

Detailed Breakdown

ComponentNew RegimeOld Regime
Annual CTC₹15,00,000₹15,00,000
Taxable Income₹13,08,700₹11,58,700
Income Tax + Cess-₹79,357-₹1,66,514
Employee EPF-₹83,022-₹83,022
Monthly In-Hand₹1,01,577₹94,314

New vs Old Tax Regime: The Definitive Guide

Choosing between the New Tax Regime (Income Tax Act 2025) and the Old Tax Regime is the most critical financial decision for Indian taxpayers this year. While the New Regime offers lower tax rates, the Old Regime allows for significant deductions.

The New Tax Regime (FY 2026-27)

The New Regime has been redesigned to be the default choice for most taxpayers. It features:

  • Lower Tax Slabs: Reduced rates across all income levels.
  • Higher Rebate: No tax on income up to ₹7 Lakhs (effective limit up to ₹7.75 Lakhs with standard deduction).
  • Standard Deduction: Increased to ₹75,000 for salaried employees.

When to Stick with the Old Regime?

The Old Regime remains beneficial if your total deductions exceed a certain threshold (usually around ₹3.75 - ₹4.25 Lakhs for high earners). You should consider the Old Regime if you have:

A Home Loan with annual interest payments of ₹2 Lakhs or more.
High HRA exemptions (living in a high-rent city like Mumbai or Bangalore).
Maximum 80C (₹1.5L), 80D (₹25k-50k), and NPS (₹50k) investments.

Frequently Asked Questions

The breakeven point depends on your income level. Generally, for an income of ₹15 Lakhs, if your total deductions (80C, 80D, HRA, etc.) are less than ₹3.75 Lakhs, the New Regime is usually better. If your deductions are higher, the Old Regime wins.
Yes, for the Financial Year 2026-27 (Assessment Year 2027-28), the standard deduction of ₹75,000 is available for salaried individuals under both the New and Old Tax Regimes.
Salaried individuals without business income can switch between the New and Old regimes every year at the time of filing their Income Tax Return (ITR). However, once you declare it to your employer, it's easier to stay consistent for payroll purposes.
The New Tax Regime is now the 'default' regime. If you do not explicitly inform your employer or choose one during ITR filing, your taxes will be calculated based on the New Tax Regime slabs.