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Which tax regime saves you more in 2026-27?
Most salaried people pay less under the new regime, where resident taxpayers owe nothing on taxable income up to ₹12 lakh and get a ₹75,000 standard deduction. The old regime can win if your 80C, health insurance, HRA and home loan deductions are large. Enter your figures to compare both.
Draft rules: not yet verified by a CA. Do not rely on this figure.
Deductions (old regime only)
The new regime saves you ₹89,700. Your tax would be ₹81,900.
How the new regime adds up
- Gross income₹14,00,000
- Standard deduction− ₹75,000
- ₹0 to ₹4,00,000 at 0%₹0
- ₹4,00,000 to ₹8,00,000 at 5%₹20,000
- ₹8,00,000 to ₹12,00,000 at 10%₹40,000
- ₹12,00,000 to ₹16,00,000 at 15%₹18,750
- Cess, 4%₹3,150
- Total tax₹81,900
Estimate for planning, not tax advice. Normal-rate income of individuals only. Special-rate income such as capital gains is not included.
Worked example
A salaried resident below 60 earning ₹14,00,000, with ₹1,50,000 in 80C and ₹25,000 in health insurance.
The new regime saves you ₹89,700. Your tax would be ₹81,900.
| New regime | ₹81,900 |
|---|---|
| Old regime | ₹1,71,600 |
| You save | ₹89,700 |
| Taxable | New regime: 13,25,000 · Old regime: 11,75,000 |
Common questions
Is income up to ₹12 lakh tax-free in 2026-27?
For resident individuals under the new regime, yes: the rebate brings tax to zero on taxable income up to ₹12 lakh. Salaried people also get a ₹75,000 standard deduction, so salary up to about ₹12.75 lakh pays no tax. NRIs do not get this rebate, and special-rate income such as some capital gains is treated separately.
What is the difference between AY 2026-27 and tax year 2026-27?
AY 2026-27 is the return for income earned from April 2025 to March 2026, under the 1961 Act. Tax year 2026-27 is income earned from April 2026 to March 2027, under the Income-tax Act, 2025. Choose the year you are working on above.
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