Guide

Old vs new tax regime for Tax Year 2026-27

Budget 2026 left slab rates unchanged. Here is how rebate, standard deduction, and 80C change the comparison.

New regime (default)

Exemption up to ₹4 lakh, then 5–30% in ₹4 lakh bands up to ₹24 lakh. Salaried standard deduction is ₹75,000. Rebate u/s 87A can make taxable income up to ₹12 lakh effectively tax-free, plus 4% cess on the tax that remains.

Old regime

Lower exemption (₹2.5 lakh for those under 60) but you can claim HRA, 80C, 80D, and home-loan interest. Standard deduction is ₹50,000. If deductions are large, old regime can still win — compare both in the calculator.

Salary tax, CTC, and regime choice

Worked salary tables, CTC to in-hand, and a live slab readout from the FY config sit under Popular finance questions so this guide does not become a second copy of the tax engine.