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New companyUpdated Sept 2026

Income Tax Calculator: New vs Old Regime (FY 2026-27)

Estimate and compare income tax under both regimes for FY 2026-27 using the deductions you enter. Verify the result against your full income and filing circumstances.

Your Annual Income

Presets:

Deductions (Old Regime)

Recommendation

Based on your declared investments, the new Tax Regime saves you ₹1,05,300 per year.
✨ AI Tax Advisor

Breakeven Deduction Threshold

Required: ₹5,43,750

To make the Old Regime cheaper than the New Regime at ₹15.0 LPA, you need at least ₹5,43,750 in tax-saving deductions (excluding standard deduction). You currently claim ₹1,75,000, so the New Tax Regime saves you ₹1,05,300 per year.

Your Deductions: ₹1,75,000Breakeven Threshold: ₹5,43,750
32% of required deductions reachedNeed ₹3,68,750 more to break even
💡 Tax Saving Optimization Tips:
  • Tier-1 NPS under Section 80CCD(1B) offers an exclusive extra deduction of up to ₹50,000 under the Old Regime.
  • If paying rent, claiming HRA exemption with rent receipts is usually the single largest deduction available under the Old Regime.

New Regime (FY 2026-27)Recommended

Taxable Income₹14,25,000
Tax Before Cess₹93,750
Health & Education Cess (4%)₹3,750
Total Annual Tax₹97,500
Monthly Tax (TDS)₹8,125
Effective Tax Rate6.5%

Old Regime

Taxable Income₹12,75,000
Tax Before Cess₹1,95,000
Health & Education Cess (4%)₹7,800
Total Annual Tax₹2,02,800
Monthly Tax (TDS)₹16,900
Effective Tax Rate13.5%

Tax Calculation Basis:

Based on the rates applicable for FY 2026-27. Automatically applies Standard Deduction of ₹75,000 for the New Regime and ₹50,000 for the Old Regime. Full tax rebate under Section 87A is factored in for taxable income up to ₹12,00,000 under the New Tax Regime.

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What this tool includes

  • ✓FY 2026-27 rates with a ₹75,000 New Regime standard deduction
  • ✓Full Section 87A rebate calculation up to ₹12 Lakhs income
  • ✓Side-by-side deduction analysis for 80C, 80D, HRA, and home loan interest
  • ✓Clear recommendation showing exact rupee tax savings

Authoritative References & Acts

Frequently asked questions

Which tax regime is better for salaried employees in FY 2026-27?

The New Tax Regime is generally more beneficial for most salaried individuals with income up to ₹12 Lakhs due to zero tax liability after the Section 87A rebate. For higher incomes, it depends on whether your total eligible deductions (80C, 80D, HRA, etc.) exceed the breakeven threshold.

Can I switch between Old and New Tax Regimes every year?

Yes, salaried employees without business or professional income can choose between the New and Old Tax Regimes each financial year at the time of filing their Income Tax Return (ITR).

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SwitchPilot provides general planning estimates, editable drafts, and contract review aids: not formal legal, tax or employment advice. Verify your contract terms and calculations with your employer or a qualified adviser.