Old vs New Tax Regime Calculator
India, FY 2025-26. The new regime has lower slabs but almost no deductions. The old regime has higher slabs but lets you claim 80C, HRA and home-loan interest. Enter your numbers — see which one wins.
Your income
Old-regime deductions
Not sure? Work it out with the HRA exemption calculator.
Verdict
Old regime New regime
Salary income only. Includes 4% health & education cess and the Section 87A rebate under both regimes. Does not model surcharge above ₹50 L, capital gains, or business income. Confirm with a CA before you declare a regime to your employer.
The two slab tables (FY 2025-26)
| New regime | Rate | Old regime | Rate |
|---|---|---|---|
| Up to ₹4,00,000 | Nil | Up to ₹2,50,000 | Nil |
| ₹4 L – ₹8 L | 5% | ₹2.5 L – ₹5 L | 5% |
| ₹8 L – ₹12 L | 10% | ₹5 L – ₹10 L | 20% |
| ₹12 L – ₹16 L | 15% | Above ₹10 L | 30% |
| ₹16 L – ₹20 L | 20% | — | — |
| ₹20 L – ₹24 L | 25% | — | — |
| Above ₹24 L | 30% | — | — |
Standard deduction: ₹75,000 (new) · ₹50,000 (old). Section 87A rebate: taxable income up to ₹12 L (new) · up to ₹5 L (old). 4% cess applies on top of tax under both.
How to read the verdict
There is a break-even level of deductions for every income. Below it the new regime is cheaper; above it the old regime wins. The calculator shows that number for your salary — if your real 80C + 80D + HRA + home-loan interest adds up to more than it, stay on the old regime.
In practice the old regime tends to win for people with a home loan plus rent-free HRA plus a full ₹1.5 L in 80C. The new regime tends to win for young earners, renters in small cities, and anyone whose only 80C is their EPF contribution.
Frequently asked questions
Which tax regime is better for me?
It depends entirely on your deductions. There is a break-even level of deductions for every income — below it the new regime is cheaper, above it the old regime wins. The calculator computes that exact figure for your salary. As a rough guide, the old regime tends to suit people with a home loan plus HRA plus a full ₹1.5 lakh in 80C; the new regime suits everyone else.
Can I switch between regimes every year?
Salaried individuals without business income can choose afresh each financial year while filing their return, regardless of what they declared to their employer. Taxpayers with business or professional income get only one switch back to the old regime in their lifetime, after which the choice is locked.
Which deductions are lost under the new regime?
Most of them: Section 80C, 80D, HRA exemption, LTA, home-loan interest on a self-occupied property, and the ₹50,000 NPS deduction under 80CCD(1B). What survives is the ₹75,000 standard deduction, the employer NPS contribution under 80CCD(2), and a handful of niche items.
Is the new regime the default now?
Yes. Since FY 2023-24 the new regime is the default. If you want the old regime you must actively opt in — with your employer at the start of the year for TDS purposes, and again when you file your return.
Does this calculator handle surcharge?
No. It covers salary income with slab tax and the 4% health and education cess, plus the Section 87A rebate under both regimes. Surcharge applies above ₹50 lakh of total income and is not modelled here — at those levels the new regime is generally more favourable because its top surcharge is capped at 25% rather than 37%.
Know your tax before March, not after.
Money Track tags every investment and premium so your 80C total is never a last-minute scramble.
Start free trial