Tax by salary, 2026-27
For every salary in the table, the new regime costs the same or less than the old regime, even with the deductions listed.
| Salary | New regime | Old regime, no deductions | Old regime, with deductions | Cheaper |
|---|---|---|---|---|
| ₹6,00,000 | ₹0 | ₹23,400 | ₹0 | New regime |
| ₹8,00,000 | ₹0 | ₹65,000 | ₹28,600 | New regime |
| ₹10,00,000 | ₹0 | ₹1,06,600 | ₹70,200 | New regime |
| ₹12,00,000 | ₹0 | ₹1,63,800 | ₹1,11,800 | New regime |
| ₹15,00,000 | ₹97,500 | ₹2,57,400 | ₹2,02,800 | New regime |
| ₹20,00,000 | ₹1,92,400 | ₹4,13,400 | ₹3,58,800 | New regime |
| ₹30,00,000 | ₹4,75,800 | ₹7,25,400 | ₹6,70,800 | New regime |
How the table is made
Each row is a salary with no HRA, no other income and no savings interest. The “with deductions” column adds ₹1,50,000 under section 123 and ₹25,000 of health insurance, which the old regime allows. Your own numbers will differ, so use the calculator above for your case.
The example in the calculator, which includes rent and HRA, comes to ₹87,050 in the new regime and ₹1,10,660 in the old one for a salary of ₹14 lakh.
Frequently asked questions
Which regime is better, old or new?
It depends on your deductions. For the example on the calculator above: The new regime costs ₹87,050 against ₹1,10,660 — ₹23,610 less for tax year 2026-27. The old regime would only match it with about ₹1,13,500 more in deductions. For a salary-only person with ₹1,50,000 under section 123 and ₹25,000 of health insurance, the table on this page shows which regime costs less at each salary.
Why does the new regime win for so many salaries?
It has lower slab rates and a rebate that makes income up to ₹12,00,000 tax-free (₹12,75,000 of salary after the ₹75,000 standard deduction). The old regime only pulls ahead when your deductions are large.
Which deductions work only in the old regime?
Section 123 savings (PPF, EPF, ELSS, tuition fees), HRA, health insurance premium, home-loan interest on a house you live in, and the extra NPS deduction. The new regime allows very few of these.
Can I change regime every year?
If you have no business income, you can choose again each year when you file your return for tax year 2026-27. People with business income have limits on switching back.
How fresh are the rules here?
The slabs and limits are for tax year 2026-27 under the Income-tax Act, 2025 as amended by the Finance Act, 2026, last checked on 8 October 2026.