Old vs New Tax Regime Calculator
Tax under both regimes for 2026-27 and the break-even deductions the old regime needs at your income, with a chart from ₹5 lakh to ₹50 lakh.
A ₹15 lakh salary pays ₹97,500 of income tax in tax year 2026-27 under the new regime, or ₹8,125 a month. The old regime only does better if your deductions reach ₹5,43,750, and for most people that takes a big HRA claim. The calculator below starts at ₹15 lakh with the usual investments filled in.
By Bulan Sarkar · Updated
Part of the system: Old vs new regime in 3 steps. Steps, checks and a free printable page.
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Rates checked on 6 October 2026 against the CBDT Tax Reference Tables for the Income-tax Act, 2025 on incometaxindia.gov.in (Tax Rates page, last reviewed 28 September 2026): new-regime slabs under section 202, old-regime slabs, and 4% health and education cess. The ₹75,000 and ₹50,000 standard deductions and the employer-NPS limits (14% of basic plus DA in the new regime, 10% in the old) were checked on the same tables on 30 September 2026.
Under the new regime a ₹15 lakh salary pays ₹97,500 in tax for tax year 2026-27, or ₹8,125 a month. The ₹75,000 standard deduction leaves ₹14,25,000 taxable, slab tax on that is ₹93,750, and 4% cess adds ₹3,750. To match it, the old regime needs ₹5,43,750 of deductions on top of its ₹50,000 standard deduction. Full section 123 (old 80C), ₹50,000 of your own NPS, ₹25,000 of health insurance and professional tax add up to ₹2,27,500. A renter would need about ₹3.16 lakh of HRA exemption on top of that, which means rent of roughly ₹31,400 a month or more. If you pay less, stay on the new regime.
You are in the 15% slab, which runs to ₹16 lakh of taxable income, or a ₹16.75 lakh salary. Each extra ₹1,000 of salary up to there costs ₹156 in tax with cess.
| Deductions you claim (on top of the ₹50,000 standard deduction) | Total | Old-regime tax | Against ₹97,500 new |
|---|---|---|---|
| s.123 ₹1.5 lakh, s.126 ₹25,000, own NPS ₹50,000, professional tax ₹2,500 | ₹2,27,500 | ₹1,86,420 | ₹88,920 more |
| The same plus ₹2 lakh home loan interest | ₹4,27,500 | ₹1,24,020 | ₹26,520 more |
| Row 1 plus ₹2.4 lakh HRA exemption | ₹4,67,500 | ₹1,13,360 | ₹15,860 more |
| Row 1 plus ₹3 lakh HRA exemption | ₹5,27,500 | ₹1,00,880 | ₹3,380 more |
| Row 2 plus ₹1.2 lakh HRA exemption | ₹5,47,500 | ₹96,720 | ₹780 less |
The line sits at ₹5,43,750. Without rent, the usual deductions (section 123, your own NPS, health insurance, home loan interest and professional tax) add up to ₹4,27,500, or ₹5,02,500 if you claim the full ₹1 lakh of health insurance for yourself and senior-citizen parents. Both fall short, so without HRA the old regime only wins at this salary with something unusual, such as large education loan interest or donations. Row 2 is someone who did everything else and still pays ₹26,520 more.
HRA exemption is the smallest of three amounts: the HRA your employer pays, your rent minus 10% of basic plus DA, and 50% of basic plus DA (40% outside Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad). For a renter with no home loan who already claims the ₹2,27,500 in row 1, the exemption has to reach ₹3,16,250.
| Basic + DA a year | City | HRA cap | Rent needed |
|---|---|---|---|
| ₹6,00,000 (40% of salary) | 50% city | ₹3,00,000 | Not possible: the cap is below ₹3,16,250 |
| ₹6,00,000 | Other | ₹2,40,000 | Not possible |
| ₹7,50,000 (50% of salary) | 50% city | ₹3,75,000 | ₹3,91,250 a year, about ₹32,600 a month |
| ₹7,50,000 | Other | ₹3,00,000 | Not possible |
The cap usually settles this before rent does. In one of the eight 50% cities your basic plus DA has to be at least ₹6,32,500, and your HRA allowance at least ₹3,16,250. Elsewhere the basic would have to be ₹7,90,625, more than half the salary, which few pay structures allow. Outside the big cities, a ₹15 lakh earner without a home loan is almost always better off on the new regime.
Suppose you own a house with a loan in your home town and rent a flat in the city where you work. You can claim the home loan interest, up to ₹2 lakh, and HRA for the flat at the same time. That puts you at row 2 (₹4,27,500), and only ₹1,16,250 of HRA exemption is left to find. On a ₹6 lakh basic that is rent of ₹1,76,250 a year, about ₹14,700 a month. Put your own figures into the calculator to check.
Your employer's NPS contribution is deductible in the new regime under section 124(1) (old 80CCD(2)), up to 14% of basic plus DA. On a ₹6 lakh basic that is ₹84,000. If your employer moves ₹84,000 of your pay into NPS, taxable income falls to ₹13,41,000 and the tax drops to ₹84,400, a saving of ₹13,100 a year. The old regime allows only 10% (₹60,000), so the break-even rises slightly, to ₹5,46,750. The money stays in your NPS account, and most of it can't be withdrawn until you turn 60. Ask HR before the year starts; most employers only change the salary structure then.
At ₹16 lakh the new-regime tax is ₹1,13,100, ₹15,600 more than at ₹15 lakh, and the break-even goes up to ₹5,68,750. Someone who was just over the line at ₹15 lakh can end up under it after a ₹1 lakh raise without changing anything else. In the old regime the same raise costs ₹31,200, twice as much, because old-regime income above ₹10 lakh is taxed at 30%. Check again every April, before you tell your employer which regime to use for TDS.
HRA allowance ₹3,75,000. The three limits are ₹3,75,000 received, ₹4,20,000 − ₹75,000 = ₹3,45,000, and 50% of basic = ₹3,75,000, so the exemption is ₹3,45,000. Add section 123 ₹1,50,000, own NPS ₹50,000, health insurance ₹25,000 and professional tax ₹2,500: deductions ₹5,72,500, which is past the ₹5,43,750 line.
Old regime: ₹15,00,000 − ₹50,000 − ₹5,72,500 = ₹8,77,500 taxable. Tax ₹12,500 + ₹75,500 = ₹88,000, plus cess = ₹91,520. That is ₹5,980 less than the new regime's ₹97,500, so this person should pick the old regime.
Lucknow is not a 50% city, so the cap is 40% of basic, ₹2,40,000. Rent minus 10% of basic is also ₹2,40,000, and so is the HRA allowance, so the exemption is ₹2,40,000. With section 123 ₹1,50,000, health insurance ₹25,000 and professional tax, deductions come to ₹4,17,500.
Old regime: ₹10,32,500 taxable, tax ₹1,22,250 plus cess = ₹1,27,140. The new regime saves ₹29,640. Adding ₹84,000 of employer NPS brings the new-regime tax down to ₹84,400, so the gap grows to ₹42,740.
Written by Bulan Sarkar, who checked the results by hand and against a second public calculator. Use it for planning; it isn't tax or investment advice.
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