Tax 6M+ Monthly Searches 📅 June 2026 · ✍️ Karthik, Vijayawada AP · ⏱ 7 min read

New Tax Regime vs Old Tax Regime 2026-27 Complete Comparison Guide

Complete guide to new vs old tax regime for FY 2026-27. Updated slabs, who benefits from each, exact tax calculations for every salary level from ₹5L to ₹50L.

New vs Old Tax Regime — Updated Slabs 2026-27

Income Range	New Regime	Old Regime
Up to ₹3,00,000	Nil	Nil
₹3,00,001 – ₹6,00,000	5%	5% (₹2.5L-₹5L)
₹6,00,001 – ₹9,00,000	10%	20% (₹5L-₹10L)
₹9,00,001 – ₹12,00,000	15%	20%
₹12,00,001 – ₹15,00,000	20%	30%
Above ₹15,00,000	30%	30%

Tax Comparison — Which Regime Saves More?

Annual Salary	New Regime Tax	Old Regime (No deductions)	Old Regime (Full deductions)	Best Choice
₹7,00,000	₹0 (87A rebate)	₹25,000	₹0	New Regime
₹10,00,000	₹54,600	₹1,12,500	₹7,800	Old Regime
₹12,00,000	₹80,600	₹1,62,500	₹31,200	Old Regime
₹15,00,000	₹1,45,600	₹2,62,500	₹62,400	Old Regime
₹20,00,000	₹2,96,400	₹4,12,500	₹1,71,600	Old Regime
₹50,00,000	₹11,96,400	₹14,62,500	₹9,96,000	Old Regime

Old regime deductions assumed: 80C ₹1.5L + HRA ₹60K + NPS ₹50K + Home Loan Interest ₹2L + Standard Deduction ₹50K

Who Should Choose New Tax Regime?

Income up to ₹7 lakh — zero tax in new regime (87A rebate)
Those with minimal deductions (no home loan, no HRA, no NPS)
Retired individuals with simple income structure
Those who want simpler compliance without tracking deductions

Who Should Choose Old Tax Regime?

Home loan borrowers (Section 24b: ₹2 lakh interest deduction)
HRA beneficiaries in Delhi, Mumbai, Bangalore (significant deduction)
Those maxing out 80C + NPS (total ₹2 lakh deduction)
Income above ₹15 lakh with full deductions — old regime saves ₹50,000-₹1 lakh more

Calculate your exact tax under both regimes using our Income Tax Calculator.

Frequently Asked Questions

Can I switch between new and old regime every year? +

Salaried employees can switch between regimes every financial year when filing ITR. Self-employed individuals can switch only once. Best practice: Calculate tax under both regimes every March before submitting Investment Declaration to employer.

What is default tax regime in 2026? +

New Tax Regime is the default regime from FY 2024-25 onwards. If you want Old Regime, you must explicitly opt for it when filing ITR or submitting Form 10-IEA. If you don't declare, your employer will deduct TDS under New Regime by default.