New vs Old Tax Regime FY 2026-27: Which Saves More?
Updated 5 November 2026
For most salaried people the new regime now gives lower tax, because income up to ₹12.75 lakh is tax-free and the slabs are wider. The old regime wins only when you claim large deductions.
Example: salaried, with ₹3.75 lakh of old-regime deductions
(₹1.5 lakh 80C, ₹25,000 80D and ₹2 lakh home loan interest.)
| Salary | Tax, new regime | Tax, old regime |
|---|---|---|
| ₹10 lakh salary | ₹0 | ₹28,600 |
| ₹15 lakh salary | ₹97,500 | ₹1,40,400 |
| ₹25 lakh salary | ₹3,19,800 | ₹4,52,400 |
How to decide
- Add up the deductions you will really claim: 80C, 80D, HRA, home loan interest and others.
- Put your salary and that total into the income tax calculator; it shows both regimes and the saving.
- Salaried people can switch every year when filing the return.
Try it
Open the income tax calculator and enter your own numbers. Words you don't know are explained in the money glossary.