Income Tax Calculator (Old Regime) FY 2026-27
Use this income tax calculator for the old regime to compute your tax liability for FY 2026-27 (AY 2027-28) while claiming all eligible deductions: Section 80C (₹1.5 lakh investments), 80D (medical insurance), HRA exemption, home loan interest, NPS contribution and more. The old regime offers higher slab rates than the new regime but compensates with substantially more deductions, often saving more tax for those who actively claim them.
The old regime is particularly attractive if you live on rent in a metro (large HRA), have a home loan with significant interest, contribute to PPF/ELSS/EPF, or have parents whose medical insurance you pay. Enter your income and deduction details — the calculator computes tax slab-by-slab and shows whether the old regime saves more than the new regime for your specific situation.
How this calculator works
The old tax regime explained
The old regime is the legacy tax structure that existed before Section 115BAC introduced the new regime in FY 2020-21. It has higher slab rates but allows over 70 different deductions and exemptions across Chapter VI-A (sections 80C through 80U), Section 10 exemptions (HRA, LTA), Section 24 (home loan interest), and the standard deduction. From FY 2023-24, the old regime is no longer the default — you must explicitly opt for it when filing your ITR.
Income tax slabs for FY 2026-27 (old regime)
| Income Range | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
For senior citizens (60-79 years), the basic exemption is ₹3,00,000. For super senior citizens (80+ years), it's ₹5,00,000.
Standard deduction
Salaried employees and pensioners get a flat ₹50,000 standard deduction in the old regime (lower than the ₹75,000 in the new regime). Family pensioners get the lower of ₹15,000 or one-third of family pension.
The Section 87A rebate — old regime version
If your taxable income (after all deductions) is up to ₹5 lakh, the rebate of ₹12,500 makes your tax liability zero. Income just above ₹5 lakh attracts the full slab tax — there's no marginal relief in the old regime. So a ₹5,00,001 income pays roughly ₹13,000 in tax while ₹5,00,000 pays ₹0.
Major deductions available
Section 80C (₹1,50,000 limit)
The most popular tax-saving section. Eligible investments include: PPF (₹1.5L/year), ELSS mutual funds (3-year lock-in), 5-year tax-saver FD, Life insurance premium, EPF employee contribution, NSC, NPS Tier-I (also under 80CCD(1)), Sukanya Samriddhi Yojana, ULIP, SCSS, principal repayment of home loan, tuition fees for two children.
Section 80CCD(1B) — additional ₹50,000 NPS
An exclusive ₹50,000 deduction for NPS Tier-I contribution, over and above the 80C limit. So an NPS contributor can effectively claim up to ₹2 lakh in deductions.
Section 80D — medical insurance
Medical insurance premium for self, spouse and children: up to ₹25,000 (₹50,000 if any insured is 60+). Additional ₹25,000 for parents' premium (₹50,000 if parents are 60+). Maximum total: ₹1 lakh per year.
HRA exemption (Section 10(13A))
Tax-free HRA is the lowest of: actual HRA received, rent paid minus 10% of basic salary, or 50% of basic salary in metros (40% in non-metros). Often the largest single tax saver for salaried employees in metros.
Section 24(b) — home loan interest
Up to ₹2 lakh deduction on home loan interest for self-occupied property. No upper limit for let-out (rented) property — full interest is deductible against rental income.
Other useful deductions
80E (education loan interest, no limit, 8 years), 80EEA (additional ₹1.5L home loan interest for affordable housing first-time buyers), 80G (donations, 50% or 100% of qualifying amount), 80U / 80DD (disability), 80TTA (savings interest up to ₹10,000), 80TTB (senior citizen interest up to ₹50,000).
Surcharge under the old regime
Old regime surcharge can go up to 37% (vs 25% cap in the new regime): 10% (₹50L-1Cr), 15% (₹1-2Cr), 25% (₹2-5Cr), 37% (above ₹5Cr) — making it less attractive for ultra-high earners. Effective top marginal rate: 30% × 1.37 × 1.04 = ~42.7%.
Worked example
Example 1 — Salaried employee earning ₹12 lakh, claiming all major deductions:
- Gross salary: ₹12,00,000
- Less: Standard deduction: ₹50,000
- Less: 80C (PPF + ELSS): ₹1,50,000
- Less: 80CCD(1B) NPS: ₹50,000
- Less: 80D health insurance: ₹25,000
- Less: HRA exemption (rent ₹25k/month, Mumbai): ₹2,40,000
- Less: Home loan interest (Sec 24): ₹2,00,000
- Taxable income: ₹4,85,000
- Tax: ₹0 (first ₹2.5L) + ₹11,750 (5% on ₹2.35L) = ₹11,750
- Section 87A rebate: −₹11,750
- 4% cess: ₹0
- Total tax: ₹0 — old regime wins big due to deductions.
Example 2 — Salaried employee earning ₹15 lakh, only ₹1.5L 80C and ₹50k 80CCD(1B):
- Gross salary: ₹15,00,000
- Less standard deduction: ₹50,000
- Less 80C: ₹1,50,000; Less 80CCD(1B): ₹50,000
- Taxable income: ₹12,50,000
- Tax: ₹0 + ₹12,500 (5% on ₹2.5L) + ₹1,00,000 (20% on ₹5L) + ₹75,000 (30% on ₹2.5L) = ₹1,87,500
- 4% cess: ₹7,500
- Total tax: ₹1,95,000 — vs ~₹97,500 under new regime. New regime wins here.
Example 3 — Senior citizen earning ₹8 lakh, no major deductions:
- Pension income: ₹8,00,000
- Less standard deduction: ₹50,000
- Less 80TTB (interest income): ₹50,000
- Less 80D senior citizen medical: ₹50,000
- Taxable income: ₹6,50,000
- Tax: ₹0 (up to ₹3L senior exemption) + ₹10,000 (5% on ₹2L) + ₹30,000 (20% on ₹1.5L) = ₹40,000
- 4% cess: ₹1,600
- Total tax: ₹41,600
Frequently asked questions
Is the old regime still available for FY 2026-27?
Yes. The old regime has not been discontinued. You can choose it while filing your ITR. However, it is no longer the default — if you don't actively select it, you will be taxed under the new regime. Salaried employees can switch between regimes every year, but business owners can switch only once in their lifetime.
Which regime saves more tax for me?
Run both calculators and compare. As a rough rule: if your combined deductions (80C, 80D, HRA, home loan interest, NPS, etc.) exceed approximately ₹4 lakh, the old regime usually saves more for income above ₹12 lakh. If you don't maximise deductions or have simple income, the new regime is better. There is no universal answer — it depends on your specific situation.
Can I claim 80C if I'm self-employed?
Yes. Section 80C deductions are available to all individual taxpayers regardless of income source — salary, business, profession, or freelance. The ₹1.5 lakh limit and the eligible investment list are identical for everyone. Self-employed taxpayers also get an additional ₹50,000 under 80CCD(1B) for NPS Tier-I contributions.
What if my taxable income is exactly ₹5 lakh — do I pay any tax?
No. Section 87A rebate of ₹12,500 wipes out the ₹12,500 of tax that would otherwise apply (5% slab on ₹2.5L excess over the ₹2.5L exemption). However, even ₹5,00,001 income pays the full ₹13,000+ tax — there is no marginal relief in the old regime. Aim to keep taxable income at ₹5 lakh or below if you're close to the threshold.
How much HRA exemption can I claim?
HRA exemption is the lowest of three values: (1) actual HRA received from employer, (2) rent paid minus 10% of basic salary, (3) 50% of basic salary if you live in a metro (Mumbai, Delhi, Kolkata, Chennai), 40% otherwise. You must have a valid rent agreement and pay rent through traceable means (UPI, cheque, bank transfer) to claim it without questions.
Can I claim home loan interest deduction in both regimes?
For self-occupied property, only the old regime allows the ₹2 lakh deduction under Section 24(b). For let-out (rented) property, both regimes allow full interest deduction against rental income. So if you live in your own home with a loan, the old regime is significantly better. If you've rented out your property, both regimes treat home loan interest similarly.
What is the ₹50,000 NPS deduction under 80CCD(1B)?
It's an exclusive ₹50,000 deduction for NPS Tier-I contributions, over and above the ₹1.5 lakh limit of Section 80C. So you can claim ₹1.5 lakh under 80C plus ₹50,000 under 80CCD(1B) for a combined ₹2 lakh tax-saving investment cap. This ₹50,000 deduction is unavailable in the new regime.
Are senior citizens better off in old or new regime?
Often the old regime, because: (1) higher basic exemption (₹3 lakh for 60-79, ₹5 lakh for 80+) vs ₹4 lakh in the new regime, (2) Section 80TTB lets seniors deduct up to ₹50,000 of interest income, (3) higher 80D medical insurance limit (₹50,000 for senior parents). The new regime offers no senior-citizen-specific benefits.
Can I claim multiple insurance policies under 80C?
Yes, but the combined deduction is capped at ₹1.5 lakh. You can claim premiums on life insurance for self, spouse and children. The premium must not exceed 10% of the sum assured (15% if the policy was issued after April 2012). Term insurance premiums always qualify; ULIPs qualify if issued before Feb 2021 with annual premium under ₹2.5 lakh.
What is the difference between 80E and 80EEA?
Section 80E allows unlimited deduction on interest paid on education loans for self, spouse, children or wards — for up to 8 years from start of repayment. Section 80EEA gives an additional ₹1.5 lakh deduction (over and above Section 24's ₹2 lakh) on home loan interest for first-time affordable housing buyers, subject to property value below ₹45 lakh.
What is the surcharge structure under the old regime?
Surcharge applies on the tax amount (not income): 10% (₹50L-1Cr), 15% (₹1-2Cr), 25% (₹2-5Cr), 37% (above ₹5Cr). The new regime caps surcharge at 25%, so for income above ₹5 crore, switching to the new regime can save significant tax. The effective top marginal rate in the old regime hits about 42.7% with surcharge and cess.