New vs Old Tax Regime
Enter your income and deductions — see which regime wins live, with exact tax under each and a slab-wise breakdown.
Old vs New — detailed breakdown
Not sure which regime suits you?
Our CA experts analyse your full income profile and pick the regime that saves the most — free.
Disclaimer: Indicative estimate for individual residents. Actual tax may vary with exemptions, capital gains and special-rate income. Rates per Finance Act 2025.
Budget 2025 — what changed in the new regime
The new tax regime is now the default. For FY 2025-26, the rebate under Section 87A was raised so a resident individual pays zero tax up to ₹12 lakh of taxable income — and with the ₹75,000 standard deduction, salaried people are effectively tax-free up to ₹12.75 lakh.
When does the old regime still win?
The old regime charges higher slab rates but lets you claim 80C, 80D, HRA and home-loan interest. It beats the new regime only once your deductions are large enough to offset the rate gap. Here is roughly how much you need to claim before the old regime becomes cheaper (over and above the standard deduction).
Low income (up to ₹12.75L)
The new regime is almost always better — zero tax up to ₹12.75L via the 87A rebate. The old regime can only match this with very heavy deductions, which most people at this level do not have.
Break-even deductions
Around ₹3.75L–₹4.25L of total deductions (beyond the standard deduction) is where the old regime overtakes the new one for incomes of ₹15L–₹24L. Below that, stay on new.
Home-loan + HRA households
₹2L home-loan interest + ₹1.5L (80C) + HRA + 80D easily crosses ₹4L. For salaried people renting and repaying a home loan, the old regime frequently wins — enter your numbers above.
Very high income
The new regime caps surcharge at 25% versus 37% in the old regime, so for income above ₹2Cr the new regime has a structural advantage unless deductions are exceptional.
Income tax slabs — FY 2025-26
The new regime has lower rates but almost no deductions; the old regime has higher rates but lets you claim 80C, 80D, HRA and home-loan interest. A 4% health & education cess applies on top of tax in both regimes.
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Old vs new — worked examples
What a salaried person pays under each regime. The first two take only the standard deduction; the third shows how ₹4.25L of old-regime deductions can flip the result. Enter your own numbers above to compare exactly.
Frequently asked questions
- Enter your annual gross income and pick salaried or business.
- Fill in Old Regime deductions like 80C, HRA, home loan interest, 80D and NPS.
- Click Calculate to see tax under both regimes side by side.
- Read the winner banner and effective tax rate to pick the regime that saves more.
Which regime is default for FY 2025-26?
The New Regime is the default. If you do not actively opt for the Old Regime, the New Regime applies. Salaried employees can still switch at ITR filing time.
When is the Old Regime better?
The Old Regime helps when your total deductions (80C, HRA, home loan interest, 80D and more) are large, usually above ₹3.75L to ₹5L, so the extra deductions outweigh the lower New Regime slabs.
Is standard deduction available in both regimes?
Yes. It is ₹75,000 for salaried and pensioners under the New Regime and ₹50,000 under the Old Regime. It is deducted from salary before applying slabs.
Can I switch regimes every year?
Salaried individuals can switch between regimes every year while filing the ITR. Taxpayers with business income can move from Old to New only once.
Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.