Compare New vs Old Tax Regime and find out which saves you more tax – FY 2025-26.
Compare New vs Old Regime – FY 2025-26
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New Regime Note: New Regime only allows Standard Deduction of ₹75,000. All other deductions are not applicable.
New regime is better because your deductions are low relative to the lower slab rates
Total Tax
₹1,56,000
Total Tax
₹0
You pay 0.00% of your income as tax
Monthly Tax
₹0
Monthly In-hand
₹1,00,000
You have ₹1,50,000 unused 80C limit. Invest ₹1,50,000 more to potentially save ₹44,200 in taxes.
You have ₹25,000 unused 80D limit.
See how additional deductions affect your tax
With ₹0 additional deductions, Old Regime tax = ₹1,56,000
You need ₹6,25,000 more in deductions for Old Regime to become better
The choice between New and Old Tax Regime depends primarily on your total deductions. If your deductions under the old regime (80C, 80D, HRA, etc.) exceed approximately ₹3.75 lakh for income above ₹15L, the old regime is generally better. For those with fewer investments or just starting their careers, the new regime's lower slab rates often result in lower taxes.
| Feature | New Regime | Old Regime |
|---|---|---|
| Standard Deduction | ₹75,000 | ₹50,000 |
| Section 80C | Not allowed | Up to ₹1.5L |
| Section 80D | Not allowed | Up to ₹25,000 |
| HRA Exemption | Not allowed | Allowed |
| Basic Exemption | ₹4,00,000 | ₹2,50,000 |
| Tax Rebate (87A) | Up to ₹12L income | Up to ₹5L income |
| Best for | Low deductions | High deductions |
For salaried employees with significant investments (80C maxed, HRA, 80D), the old regime is often better. If you have minimal deductions or are just starting out, the new regime's lower slab rates may result in lower taxes. Use this calculator to compare both.
Salaried individuals can switch between regimes every financial year when filing their ITR. However, if you have business income, you can switch to the old regime only once. It's advisable to calculate both options each year as your income and investments change.
The new tax regime allows only the standard deduction of ₹75,000 for salaried employees. Deductions like 80C, 80D, HRA, LTA, and home loan interest are not available. However, employer's contribution to NPS under 80CCD(2) is still allowed.
Yes! Under Section 87A, if your taxable income is up to ₹12 lakh under the new regime, you get a full tax rebate — meaning zero tax payable. Under the old regime, this rebate applies if taxable income is up to ₹5 lakh.
Free Income Tax Calculator for India FY 2025-26. Compare New vs Old Tax Regime side-by-side with instant calculation, smart recommendation, and tax saving suggestions.
Enter your annual income, age group, and deductions. The calculator instantly computes your tax under both regimes and recommends the better option.
Tax is calculated using the latest FY 2025-26 slab rates for both regimes. Section 87A rebate is applied where eligible. 4% Health & Education Cess is added to the final tax.
For ₹12L income with ₹1.5L 80C + ₹25K 80D: Old Regime tax ≈ ₹1.17L, New Regime tax ≈ ₹1.17L. Results vary based on your specific deductions.