{"id":2344,"date":"2026-10-13T21:10:18","date_gmt":"2026-10-13T15:40:18","guid":{"rendered":"https:\/\/www.tiwaripedia.com\/index.php\/2026\/10\/13\/new-vs-old-tax-regime-2026-27\/"},"modified":"2026-10-13T21:18:19","modified_gmt":"2026-10-13T15:48:19","slug":"new-vs-old-tax-regime-2026-27","status":"publish","type":"post","link":"https:\/\/www.tiwaripedia.com\/index.php\/2026\/10\/13\/new-vs-old-tax-regime-2026-27\/","title":{"rendered":"New vs Old Tax Regime 2026-27: Slabs, \u20b912 Lakh Rebate and Which One Saves More Tax"},"content":{"rendered":"

Last updated: October 2026 \u00b7 3 min read<\/em><\/p>\n

Budget 2026 kept income tax slabs unchanged, so for the financial year 2026-27<\/b> (called Tax Year 2026-27<\/b> under the new Income-tax Act, 2025), salaried individuals again choose between the new tax regime<\/b> (default) and the old tax regime<\/b>. Here is how they compare.<\/p>\n

\"Infographic:
New vs Old Tax Regime 2026-27: Slabs, \u20b912 Lakh Rebate and Which One Saves More Tax \u2013 infographic by Tiwaripedia<\/figcaption><\/figure>\n

New tax regime slabs (FY 2026-27)<\/h2>\n
Taxable income<\/th>Tax rate<\/th><\/tr><\/thead>
Up to \u20b94 lakh<\/td>Nil<\/td><\/tr>
\u20b94-8 lakh<\/td>5%<\/td><\/tr>
\u20b98-12 lakh<\/td>10%<\/td><\/tr>
\u20b912-16 lakh<\/td>15%<\/td><\/tr>
\u20b916-20 lakh<\/td>20%<\/td><\/tr>
\u20b920-24 lakh<\/td>25%<\/td><\/tr>
Above \u20b924 lakh<\/td>30%<\/td><\/tr><\/tbody><\/table><\/figure>

A rebate of up to \u20b960,000 means no tax on taxable income up to \u20b912 lakh<\/b>. With the \u20b975,000 standard deduction, a salaried person earning up to \u20b912.75 lakh<\/b> pays nil tax. Marginal relief applies just above \u20b912 lakh. Health and education cess of 4% is added to tax.<\/p>\n

Old tax regime slabs (below 60 years)<\/h2>\n
Taxable income<\/th>Tax rate<\/th><\/tr><\/thead>
Up to \u20b92.5 lakh<\/td>Nil<\/td><\/tr>
\u20b92.5-5 lakh<\/td>5%<\/td><\/tr>
\u20b95-10 lakh<\/td>20%<\/td><\/tr>
Above \u20b910 lakh<\/td>30%<\/td><\/tr><\/tbody><\/table><\/figure>

Rebate makes tax nil up to \u20b95 lakh taxable income. Standard deduction is \u20b950,000. Senior citizens (60-80) get a \u20b93 lakh basic exemption; super seniors (80+) get \u20b95 lakh.<\/p>\n

What each regime allows<\/h2>\n
Deduction\/exemption<\/th>New regime<\/th>Old regime<\/th><\/tr><\/thead>
Standard deduction (salary)<\/td>\u20b975,000<\/td>\u20b950,000<\/td><\/tr>
Section 80C (PPF, ELSS, LIC, EPF, tuition, principal)<\/td>No<\/td>Up to \u20b91.5 lakh<\/td><\/tr>
80D health insurance<\/td>No<\/td>Yes<\/td><\/tr>
HRA and LTA<\/td>No<\/td>Yes<\/td><\/tr>
Home loan interest (self-occupied)<\/td>No<\/td>Up to \u20b92 lakh<\/td><\/tr>
Employer NPS contribution<\/td>Yes (up to 14% of salary)<\/td>Yes (up to 10%)<\/td><\/tr>
Extra NPS \u20b950,000 (80CCD(1B))<\/td>No<\/td>Yes<\/td><\/tr>
Family pension deduction<\/td>Yes<\/td>Yes<\/td><\/tr><\/tbody><\/table><\/figure>

Under the Income-tax Act, 2025, these sections have new numbers (for example, 80C becomes Section 123 and the rebate under 87A becomes Section 156), but the benefits work the same way.<\/p>\n

Worked example<\/h2>\n

Ravi earns a salary of \u20b915 lakh. Under the new regime<\/b>, taxable income after the \u20b975,000 standard deduction is \u20b914.25 lakh, and tax works out to about \u20b993,750 + cess. Under the old regime<\/b>, he needs deductions of roughly \u20b95 lakh or more (80C \u20b91.5 lakh, 80D, HRA, home loan interest, NPS) for the old regime to beat the new one.<\/p>

Rule of thumb:<\/b> if your total deductions and exemptions are small, the new regime usually wins; if you have large HRA, home loan interest and full 80C\/80D use, compare both with a calculator.<\/p>\n

How to choose and switch<\/h2>\n