Rajkumar Anguluri·Software Engineer · Founder, Artha Engine·Last reviewed 8 April 2026·Methodology
Independent decision-support tool. Artha Engine is not a financial services provider, does not sell loans or insurance, and has no commission relationships with banks or insurers.
Old vs New Tax Regime — Which Saves More?
Should you file under the old or new tax regime this year? Enter your salary and deductions to see which regime saves more, what deduction level tips the scale, and how to lock in the lower tax bill.
Your numbers
Enter income and the deductions you can actually claim. The slabs follow AY 2026-27.
Save & share this scenario
Bookmark these inputs, copy a link, or send the result to someone.
Monthly take-home (new regime)
₹1,47,333
New regime wins
The lower slab rates and higher standard deduction beat your current deduction stack.
Don't force deductions just to chase the old regime unless they fit your wider plan.
If you chose the old regime instead
Old regime
₹1.5L
WinnerNew regime
₹1.4L
Old regime wins by 6.32%.
New regime wins by ₹1,05,040/yr.
Gross income
₹19.5L
Old regime tax
₹2.9L
New regime tax
₹1.8L
Annual difference
₹1,05,040
Tax savings the winning regime delivers each year.
Take-home (old)
₹1,38,580
Take-home (new)
₹1,47,333
Other benchmarks
If 80C is fully used (₹1.5L)
You
₹1.5L
Benchmark
₹1.5L
Max out PPF / ELSS / EPF / insurance before filing.
If you claimed zero deductions
You
₹1.5L
Benchmark
₹1.5L
This is what the new regime effectively assumes.
What moves the result most
Holding everything else fixed, here is how the headline shifts when each input swings by a typical range.
The new regime wins by simplicity
Lower slab rates and the larger standard deduction beat your current deduction stack.
Annual saving vs old
₹1,05,040
Next best actions
The result hints at what to look at next. Each link carries your current numbers so you never re-enter them.
What loan can this take-home actually carry?
Translate the post-tax monthly figure into a safe home-loan budget.
Walk through the old-vs-new regime comparison
See the slab-by-slab breakdown that produced the verdict above.
Could this take-home fund early retirement?
Run the FIRE calculator with your post-tax cash flow as the contribution.
At a glance
- Question answered
- For your salary and deduction profile, which tax regime leaves more take-home?
- Typical verdict
- New regime wins for most salaried users at AY 2026-27 slabs. Old regime wins only if combined deductions (80C + HRA + home loan interest) exceed ~₹5L per year.
- What it models
- Same gross income run through both slab structures. Old regime subtracts your eligible deductions; new regime applies the updated slabs with only the standard deduction.
- Best used for
- Picking your tax regime at the start of each financial year, or stress-testing a job offer's take-home impact.
How It Works
This is the drill-down layer. The flagship flow leads with a recommendation, and this page lets you inspect the underlying model.
- Both regimes start from the same gross income and apply their respective standard deductions.
- Old regime then subtracts your eligible 80C, 80D, HRA, and home-loan-interest claims.
- New regime applies its updated slab structure with no additional deductions.
Assumptions
The recommendation stays blunt, but the assumptions remain visible.
- Slabs follow the AY 2026-27 announcement.
- Surcharge and special-rate income are excluded for clarity.
- All claimed deductions are assumed valid.
FAQ
The follow-up questions people usually ask after the main recommendation is already clear.
When does the old regime still win?
When your verifiable deductions push the old-regime taxable income meaningfully below the new-regime taxable income — typically when 80C, HRA, and home-loan interest are all maxed out.
Is the new regime better for higher salaries?
Often yes at AY 2026-27 — the wider slabs and ₹75k standard deduction beat thinly-claimed deductions. Use this calculator to verify against your specific numbers.
Can I switch regimes every year?
Salaried taxpayers can switch each year. Business income has more restrictive rules. Verify with a CA before filing.
Sources & references
Every formula and assumption above is grounded in these authoritative sources.
Related tools & decisions
Keep going from here — each link carries the same cluster context.
What to do next
Comparison pages
No direct comparison yet.
Calculations and decision frameworks, not personalised financial advice. The numbers on this page are based on the inputs you supplied and the regulatory rules in effect when this page was last reviewed. They are not a recommendation to buy, sell, hold, port, or surrender any specific financial product. Consult a SEBI-registered investment advisor, a qualified tax professional, or a licensed insurance broker before acting on a financial decision involving your money.
Artha Engine is an educational decision-support website. We do not offer loans, sell insurance, distribute mutual funds, provide regulated investment advice, collect loan applications, or receive commissions from banks, insurers, AMCs, brokers, or other financial providers. References to RBI, SEBI, IRDAI, Income Tax Department, or other authorities are source citations only. Artha Engine is not affiliated with, endorsed by, or sponsored by any government authority, regulator, bank, insurer, AMC, or broker. Artha Engine does not charge users fees for using calculators, comparison tools, articles, or financial health scoring. Mailing address: India.
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