Clarowl

Tool 1.2 · FY 2026-27 (AY 2027-28)

New vs Old Tax Regime Comparator

Find the exact break-even point — and which regime saves you more money.

Calculated entirely in your browser — nothing you type is sent anywhere.

Your Salary

Not your CTC — this is CTC minus your employer's PF, gratuity, and insurance contributions

Check your payslip or Form 16 for 'Gross Salary' or 'Gross Total Income' — usually 75-85% of your CTC.

Your comparison will appear here

Enter your salary and expand any deductions that apply to you, then compare to see which regime wins.

Estimates for educational use only — not financial advice, and not from a SEBI-, RBI-, IRDAI-, or AMFI-registered entity. Verify before acting.

How this works

The new regime has lower slab rates and a bigger standard deduction (₹75,000), but almost no deductions. The old regime has higher slab rates but lets you subtract HRA, 80C investments, 80D health insurance, NPS, and home loan interest before tax is calculated. Which one wins depends entirely on how much you can actually claim in the old regime.

Under the new regime, income up to ₹12L pays effectively no tax after the rebate. Under the old regime, that rebate only applies up to ₹5L. If your deductions are large enough to pull your taxable income down significantly, the old regime can still win — this tool runs both calculations on your real numbers rather than assuming one is always better.

Worked Example

Say you earn ₹20,00,000 a year, you own your home (so there's no HRA to claim), and you haven't started any 80C investments yet. You want to know which regime costs less before changing anything.

What you enter

Gross salary (per year)
₹20,00,000
HRA, 80C, 80D, NPS, home loan
all left off

What the tool shows

New regime — total tax
₹1,92,400
Old regime — total tax
₹4,10,280
New regime saves
₹2,17,880 / year (≈ ₹18,157 / month)

What this tells you

With nothing to deduct, the new regime is far cheaper here — its lower slab rates and ₹75,000 standard deduction beat the old regime outright. The old regime only pulls ahead once you can claim large exemptions: at this income you'd need very roughly ₹3–4 lakh of HRA, 80C and home-loan interest combined before switching back is worth it. If you rent or have a home loan, turn those toggles on and compare again with your real figures.

Frequently Asked Questions

Which regime should I pick — is the new regime always better now?
Not always. It depends on how much you can genuinely claim in deductions. The new regime tends to win for people with few deductions; the old regime can still win if you have a home loan, high HRA, or max out 80C/80D. Run your real numbers — that's exactly what this tool is for.
What is the 87A rebate and does it apply to me?
It's a rebate that brings your tax to zero if your taxable income is under a threshold — ₹12L for the new regime, ₹5L for the old regime. If you're near either line, small changes to your deductions can swing your result a lot.
Can I switch tax regimes every year?
If you're salaried with no business income, yes — you can choose either regime each financial year. (Self-employed taxpayers face more restrictions — this tool assumes a salaried scenario.)
What if I don't have all my 80C/80D proofs yet — should I still fill this in?
Yes, use your best estimate. The comparison is only as accurate as your inputs, but an estimate is still far more useful than guessing which regime wins.
Does this account for HRA and home loan interest?
Yes — turn on the HRA toggle (using your basic salary, HRA received, and rent paid) and the home loan toggle (up to the ₹2L Section 24(b) cap) and both flow into the old regime calculation.

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