Reviewed by Artha Research·Last updated 8 April 2026
Old vs New Tax Regime — Which Saves More?
Side-by-side comparison of India's old and new tax regimes for AY 2026-27 under your specific deduction profile.
Your numbers
Enter income and the deductions you can actually claim. The slabs follow AY 2026-27.
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.
Old regime vs new regime
Old regime
₹1.5L
WinnerNew regime
₹1.4L
Old regime wins by 5.39%.
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
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.
Sibling tools
Comparison pages
No direct comparison yet.