2026 India Old Tax Regime
India's optional old tax regime for FY 2026-27 (AY 2027-28): 2.5L/5L/10L slabs, full Chapter VI-A deductions (80C Rs 1.5L + 80CCD(1B) Rs 50K + 80D + HRA + 24(b) Rs 2L), and a live calculator that runs the math in your browser.
2026 Old Tax Regime - full table
| Annual income | Tax rate |
|---|---|
| Rs 0 - Rs 250,000 | Nil |
| Rs 250,000 - Rs 500,000 | 5% |
| Rs 500,000 - Rs 1,000,000 | 20% |
| Above Rs 1,000,000 | 30% |
2026 old regime income tax calculator (India)
Enter your gross salary and Section 80C / 80D / HRA / 24(b) deductions. The calculator applies the old-regime slabs for FY 2026-27 (AY 2027-28), the Rs 50,000 salaried standard deduction, the 87A rebate (income up to Rs 500,000), and 4% cess. Surcharge omitted.
FY 2026-27 (AY 2027-28) old regime: Rs 50,000 std deduction + 80C (max Rs 1.5L) + HRA + 24(b) (max Rs 2L) + 87A + 4% cess. Surcharge ignored.
What changed from 2025 to 2026 (old regime)
The old regime has not been touched since FY 2017-18. The basic exemption stays at Rs 2.5 lakh, the 5% / 20% / 30% slabs are unchanged, and the Section 87A rebate cap stays at Rs 12,500 for income up to Rs 5 lakh. Section 80C remains capped at Rs 1.5 lakh, plus Rs 50,000 additional under 80CCD(1B) for NPS. Section 24(b) home loan interest deduction stays at Rs 2 lakh for self-occupied property.
The Government has progressively de-emphasised the old regime in favour of the new (115BAC) regime, which became the default from AY 2024-25. Most taxpayers with limited 80C exposure now save more under the new regime.
- Basic exemption: Rs 2,50,000 (unchanged)
- 5% slab: Rs 2.5L - Rs 5L (unchanged)
- 20% slab: Rs 5L - Rs 10L (unchanged)
- 30% slab: above Rs 10L (unchanged)
- Section 80C cap: Rs 1,50,000 (unchanged since FY 2014-15)
- Section 24(b) self-occupied: Rs 2,00,000 (unchanged since FY 2014-15)
How 2026 old tax regime work
India's old tax regime for FY 2026-27 (AY 2027-28) keeps the same slab structure that has been in force since FY 2017-18: nil up to Rs 2.5 lakh, 5% on Rs 2.5L-Rs 5L, 20% on Rs 5L-Rs 10L, and 30% above Rs 10L. Where the old regime earns its keep is the rich menu of Chapter VI-A deductions that bring taxable income down before slabs apply.
Section 80C is the workhorse: up to Rs 1.5 lakh of investments in PPF, ELSS, EPF, LIC, tax-saver FD, NSC, principal repayment on home loan, and children's tuition fees can be subtracted from gross income. On top of that, Section 80CCD(1B) gives an additional Rs 50,000 deduction for NPS Tier 1 contributions, pushing combined retirement savings deductions to Rs 2 lakh.
Salaried taxpayers in the old regime get House Rent Allowance (HRA) exemption under Section 10(13A) - the minimum of actual HRA, rent paid minus 10% of basic, or 50%/40% of basic (metro/non-metro). HRA can shelter Rs 1-3 lakh annually for renters in expensive cities. Section 24(b) lets homeowners deduct up to Rs 2 lakh of home loan interest on self-occupied property. Add 80D health insurance (Rs 25K self/family + Rs 50K parents over 60), 80E education loan interest (no cap), 80TTA savings account interest (Rs 10K), and you can easily shelter Rs 4-6 lakh of taxable income.
The Section 87A rebate in the old regime is more modest: Rs 12,500 for taxable income up to Rs 5 lakh - much smaller than the new regime's Rs 60,000 at Rs 12L. This is the single biggest reason most taxpayers without large deductions now prefer the new regime.
How to use the 2026 brackets in practice
Step 1: Compute gross total income. Sum salary, business income, capital gains, house property income, and other income. Salaried taxpayers deduct the Rs 50,000 standard deduction from salary automatically.
Step 2: Subtract Chapter VI-A deductions. Section 80C (PPF, ELSS, LIC, etc.) up to Rs 1,50,000. Section 80CCD(1B) for NPS up to additional Rs 50,000. Section 80D health insurance (Rs 25,000 self/family + Rs 50,000 for parents 60+). Section 80E education loan interest (no cap, 8 years). Section 80TTA savings account interest up to Rs 10,000.
Step 3: Subtract Section 10 exemptions. HRA exemption under 10(13A) for rent-paying salaried employees, LTA under 10(5) for travel expenses, and others.
Step 4: Subtract Section 24(b) home loan interest. Up to Rs 2,00,000 for self-occupied property; full interest for let-out property (subject to Rs 2 lakh house-property-loss cap).
Step 5: Apply the slabs above. Taxable income (after all deductions) goes through 2.5L/5L/10L slabs at 0%/5%/20%/30%.
Step 6: Apply 87A rebate, surcharge and cess. Rs 12,500 rebate if taxable income up to Rs 5 lakh. Surcharge (10/15/25/37%) above Rs 50L of income. 4% cess on tax + surcharge.
Frequently asked questions - 2026 old tax regime
What is the old tax regime in India for 2026?
The old (pre-115BAC) personal income tax regime, with slabs of nil up to Rs 2.5L, 5% on Rs 2.5L-Rs 5L, 20% on Rs 5L-Rs 10L, and 30% above Rs 10L. For FY 2026-27 (AY 2027-28), the old regime continues to be optional - salaried taxpayers can opt back into it each year on the ITR. The slabs themselves have not changed since FY 2017-18.
Is Section 80C still available in 2026 (old regime)?
Yes. Under the old regime, you can claim deductions up to Rs 150,000 under Section 80C for PPF, EPF, ELSS, LIC, principal repayment on home loan, tuition fees, NSC, tax-saver FD, and similar. The 80CCD(1B) additional Rs 50,000 for NPS Tier 1 also remains available, pushing the combined retirement-savings deduction to Rs 2,00,000.
Can I claim HRA in 2026 old regime?
Yes. House Rent Allowance exemption under Section 10(13A) is available only in the old regime. The exemption is the minimum of: actual HRA received, rent paid minus 10% of basic salary, or 50% of basic salary (metro cities) / 40% (non-metro). HRA is not available in the new regime.
What is the Section 24(b) home loan deduction in 2026?
Up to Rs 2,00,000 of interest on a home loan for self-occupied property under Section 24(b). For let-out property, the full interest is deductible against rental income, subject to the Rs 2 lakh loss-from-house-property carry-back cap. Combined with Section 80C principal repayment (Rs 1.5L limit), this gives a single homeowner up to Rs 3.5 lakh in housing-related deductions in 2026.
What is the Section 87A rebate in the 2026 old regime?
Tax rebate of Rs 12,500 if total taxable income does not exceed Rs 5,00,000 under the old regime. Note the new regime offers a much larger rebate of Rs 60,000 at a Rs 12 lakh threshold - one of the strongest arguments for the new regime if you do not have many old-regime deductions.
Should I choose old or new regime for 2026?
Use the Rs 4-5 lakh deduction rule: if your total deductions (80C + 80D + HRA + 24(b) + 80E + others) exceed Rs 4-5 lakh, the old regime usually wins; below that the new regime wins. Run both regimes through our calculator to be precise - the breakeven shifts with income level and HRA city tier.
Does the old regime still apply to senior citizens differently?
Yes. Senior citizens (60-79) get a higher basic exemption of Rs 3 lakh; super-senior citizens (80+) get Rs 5 lakh exemption. The 5%/20%/30% slabs above the basic exemption are the same. Both senior categories can still claim Section 80TTB (Rs 50,000 interest deduction) which is unavailable to non-seniors.
Are old regime slabs going to change in 2026?
Very unlikely. The Government has progressively de-emphasised the old regime - it became 'optional' from AY 2024-25, the new regime is now the default, and 80C-style deductions are signalled as a transition mechanism away from gross-of-tax savings. Most economists expect the old regime to be phased out entirely within a few years.
How does the 2026 old regime calculator work?
Enter gross salary, claim Rs 50,000 standard deduction, your 80C investments (cap Rs 1.5L), HRA exemption, and Section 24(b) home loan interest (cap Rs 2L). The calculator applies the 2.5L/5L/10L slabs, the 87A rebate if applicable, and 4% cess - and shows tax payable plus take-home.
What's the maximum I can save under the 2026 old regime?
A salaried single filer with no kids, full 80C (Rs 1.5L), full 80CCD(1B) NPS (Rs 50K), 80D health insurance (Rs 25K), HRA exemption (depends on rent), and full 24(b) home-loan interest (Rs 2L) can shelter Rs 4-6 lakh of taxable income annually. At a 30% marginal slab, that's Rs 1.2-1.8 lakh of tax saved versus claiming nothing.
Methodology and sources
Source for 2026 old tax regime: Unchanged from FY 2024-25; old regime continues to be optional under Section 115BAC.
What the calculator does NOT model:
- State / provincial / regional income tax (US states, Scottish rates, UK devolved nations have separate schedules)
- Local city / municipal income tax
- Investment income surcharges (US Net Investment Income Tax 3.8%, UK dividend allowance, etc.)
- Surcharge on very high incomes (India: 10/15/25% on tax for Rs 50L+ earners)
- Salary sacrifice, pension contributions, salary packaging
- Cesses and levies beyond the main income tax (where applicable)
- Self-employment tax (SE tax in US, Class 2/4 NI in UK)
Last updated 2026. Tax rules change frequently; if a Budget or Revenue Procedure is published between this page's update date and the tax year it covers, the numbers may shift. Always cross-check with the relevant tax authority before filing. This is an informational page, not tax advice.