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Enter deductions — instantly see which regime saves more
Add the deductions you actually expect to claim, then compare the estimated total tax under both regimes.
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Choosing between tax regimes for FY 2026-27 is not a one-size-fits-all decision. The New Regime offers lower slab rates and zero tax up to Rs 12 lakh, while the Old Regime rewards disciplined investors who fully utilize 80C, HRA, home loan interest, and NPS deductions. This optimizer applies both sets of rules to your actual income and declared deductions, then surfaces the regime that results in a lower net tax outgo.
Under the Old Regime, the tool applies age-based slab rates (standard, senior, super senior) after subtracting Section 80C (up to Rs 1.5 lakh), 80D, HRA exemption under Section 10(13A), home loan interest under Section 24(b), and NPS under 80CCD(1B). Surcharge thresholds and the 4% cess are applied on the computed tax.
Under the New Regime for FY 2026-27, only the Rs 75,000 standard deduction is applied. The revised slabs — 0% up to Rs 4 lakh, 5% from 4-8L, 10% from 8-12L, 15% from 12-16L, 20% from 16-20L, 25% from 20-24L, and 30% above 24L — are used. The Section 87A rebate (full tax waiver up to Rs 12 lakh taxable income) is checked before cess.
The tool then shows the tax delta between regimes so you can see in rupees — not just percentages — which choice saves more this financial year.
A government employee with Rs 22 LPA gross income trying to decide whether NPS employer contribution and HRA still justify the Old Regime.
A first-time taxpayer earning Rs 11 LPA wondering if the New Regime zero-tax benefit applies to their income.
A couple where one spouse has high deductions and the other does not, checking regime choices independently to optimize combined household tax.
A freelancer under 44ADA with variable income checking regime optimality before the March 15 advance tax deadline.
Scope note: Calculations use FY 2026-27 slab rates and deduction limits. Does not model surcharge on incomes above Rs 50 lakh or marginal relief near threshold bands. Assumes all declared deductions are supported by valid investment proofs. Consult a chartered accountant before finalizing your regime selection in the ITD filing portal.
Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Results are estimates based on publicly available tax slabs and formulas. Consult a qualified Chartered Accountant, tax professional, or financial advisor for guidance specific to your situation. Built and maintained by the WOWHOW Team with 14+ years of software development experience.
Enter your annual gross income and choose your age group
Add key deductions like 80C, 80D, HRA, NPS, and home-loan interest
Compare taxable income, rebate impact, and total tax under both regimes
Use the result card to see which regime saves more tax for FY 2026-27
About the Old vs New Tax Regime Optimizer
Yes. The comparison uses the FY 2026-27 slab structure for the New Regime and the relevant Old Regime slabs by age band, along with standard deduction, rebate, surcharge, and cess logic.
Usually people with materially high deductions like 80C, HRA, NPS, and home-loan interest should compare carefully, because those deductions can outweigh the lower-rate simplicity of the New Regime.
It is a practical estimate, not professional tax advice. Use it to shortlist the better option, then verify your final choice with exact payroll and filing data before submission.
Salaried individuals can switch between Old and New regimes every year by informing their employer before April. However, if you have business income, switching back to the Old Regime is allowed only once in a lifetime. This is a critical planning decision for freelancers and consultants.
The New Regime allows only a few deductions: Rs 75,000 standard deduction for salaried employees, employer NPS contribution under 80CCD(2), and a few minor exemptions like gratuity and leave encashment. Most popular deductions — 80C, 80D, HRA, home loan interest — are not available under the New Regime.
Section 87A is a rebate, not a zero-tax slab. If your taxable income after deductions is up to Rs 12 lakh under the New Regime, the entire computed tax is rebated to zero. If income exceeds Rs 12 lakh by even Rs 1, the rebate does not apply — but marginal relief prevents your effective tax from exceeding the excess over Rs 12 lakh.
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