Income tax calculator: old vs new regime
Your tax for FY 2026-27 under both regimes, side by side, the tax your employer cuts each month, and where to invest if you want to pay less in the old regime.
The short answer
For FY 2026-27, the new regime has lower rates and a ₹75,000 standard deduction, and no tax at all if your taxable income is ₹12 lakh or less. The old regime has higher rates but lets you deduct rent (HRA), 80C investments, NPS, health insurance and home loan interest. The old regime wins only when those deductions are big enough.
An example
A yearly salary of ₹18 lakh with ₹7.2 lakh basic and ₹30,000 rent a month. New regime: about ₹1,50,800 in tax. Old regime, with HRA and ₹1.26 lakh in 80C: about ₹2,20,900. The new regime saves about ₹70,000. The calculator also shows that the old regime would only win after about ₹2.25 lakh more in deductions.
Where to invest to pay less tax in the old regime
- Section 80C (now Section 123 under the Income-tax Act, 2025): up to ₹1.5 lakh. PPF, ELSS tax-saver funds (3-year lock-in), Sukanya Samriddhi, 5-year tax-saver FD or NSC, life insurance premium, home loan principal and your children's tuition fees. Your own PF already counts.
- Your own NPS: an extra ₹50,000 over and above 80C.
- Health insurance (80D): up to ₹25,000 for you and your family (₹50,000 if you're a senior citizen), and up to ₹25,000 more for your parents (₹50,000 if they're 60 or older).
- Home loan interest: up to ₹2 lakh for a home you live in.
- Employer NPS: if HR moves part of your salary into NPS (up to 10% of basic in the old regime, 14% in the new), it lowers tax in both regimes.
The calculator works out what each one saves for you and how much room you have left. Only invest in something because it suits you: a lock-in you don't need can cost more than the tax it saves.
Questions people ask
Can I change my regime later?
Salaried people without business income choose a regime with HR for the monthly TDS, and can still pick either regime when they file their return.
Did the new Income-tax Act change the limits?
The Income-tax Act, 2025 applies from April 2026. Section names and numbers changed (80C is now Section 123), but the main limits stayed the same.
Is this tax advice?
No. It's a close estimate from the numbers you enter. For decisions, check your Form 16 and AIS, or ask a chartered accountant.
Official sources
The rules behind these numbers come from official government websites. Check them yourself any time:
- Income tax rules: incometax.gov.in (Income Tax Department)
- Professional tax, Maharashtra: mahagst.gov.in (Maharashtra GST Department)
Job Shift Careers is an independent app by Cutting Chai Studio. It is not a government app and is not linked to any government or government body.