In FY 2026-27, taxable income up to ₹12 lakh pays no tax in the new regime because of the section 87A rebate. With the ₹75,000 standard deduction, salaries up to ₹12.75 lakh pay no tax.

When deductions like 80C, 80D, HRA and home loan interest add up to a large amount. The break-even point depends on your income; this calculator shows both side by side.

People without business or professional income can choose a regime every year when filing their return. Those with business income face limits on switching.

A 4% health and education cess applies to all tax. A surcharge also applies on taxable income above ₹50 lakh.