How to compare old and new salary tax regimes fairly
Use the same gross salary, separate eligible deductions from payroll costs, and check the scope of the tax comparison.
Read the guideIncome tax calculator
Old regime or new? Let the numbers decide.
Lower estimated annual tax
₹1,50,800
New regime saves ₹1,53,400 a year for these inputs.
New-regime tax₹1,50,800
Old-regime tax₹3,04,200
New-regime taxable income₹17,25,000
Old-regime taxable income₹16,00,000
Potential annual saving₹1,53,400
FY 2026–27 · Resident individuals below 60 · Ordinary income up to ₹50 lakh.
Estimates, not promises. Explore different scenarios.
The new-regime tax slabs.
| Taxable income band · new regime | Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4–8 lakh | 5% |
| ₹8–12 lakh | 10% |
| ₹12–16 lakh | 15% |
| ₹16–20 lakh | 20% |
| ₹20–24 lakh | 25% |
| Above ₹24 lakh | 30% |
Understand your result.
Compare estimated old- and new-regime salary tax for FY 2026–27 using the same gross salary. This page is for resident individuals below 60 with ordinary income within the stated ₹50 lakh scope.
Compare both taxable-income figures as well as the final tax. Old-regime exemptions and deductions change that comparison; only enter amounts you are eligible to claim.
A worked example.
Using this calculator’s default inputs, lower estimated annual tax is ₹1,50,800. This is an illustration of the stated formula, not a forecast.
See the example inputs
| Annual gross salary | ₹18,00,000 |
|---|---|
| Eligible old-regime deductions | ₹1,50,000 |
A common mistake to avoid
Entering CTC as gross salary without removing employer-only and non-cash costs.
Questions you might have.
Does the lower number mean I should choose that regime?
It shows the lower estimate for the entered ordinary salary and deductions. Eligibility, other income and filing requirements still need to be assessed.
Are capital gains and surcharge included?
No. Special-rate income, surcharge and the other exclusions listed in the assumptions are outside this model.
Prepared by INDwise · Calculation checks: 29 October 2026 · How we check the maths · Report a correction
How we calculate it
Tax is computed progressively for each slab, reduced by the applicable resident rebate and increased by 4% cess. Both regimes are compared after their salary standard deductions.
Assumptions & things to know
FY 2026–27 planning estimate for resident individuals below 60, ordinary income up to ₹50 lakh. Includes the ₹75,000 new / ₹50,000 old salary standard deduction, resident rebate, new-regime rebate marginal relief and 4% cess. Excludes capital gains, surcharge, foreign tax credits, agricultural income and special-rate income. Inputs are rounded to the nearest ₹10 for taxable income; final tax to the nearest ₹10. Check eligibility and current rules before filing.
Income Tax Department — tax ratesSource references checked 29 October 2026. Rates and rules may change.
Your privacy & sharing
Your financial inputs are used only within this page. Saved calculators use this browser’s local storage. Sharing creates a link with the entered values, so anyone with that link can see those values. A downloaded summary stays on your device.