Old vs New Tax Regime Calculator

Since FY 2023-24, the New Tax Regime is the default option for all taxpayers in India, though you can still opt for the Old Regime when filing your return. For FY 2025-26, the New Regime offers lower slab rates and a higher rebate threshold: income up to ₹12,00,000 (₹12.75 lakh including the ₹75,000 standard deduction) attracts zero tax under Section 87A. The Old Regime, meanwhile, keeps its wider set of exemptions and deductions — Section 80C investments, 80D health insurance premiums, HRA, home loan interest under Section 24(b) and the NPS benefit under 80CCD(1B) — but taxes income above ₹5,00,000 at higher rates without those breaks.

Which one should you pick? If you don't invest heavily in tax-saving instruments or pay significant home loan interest, the New Regime almost always works out cheaper because of its lower rates and larger standard deduction. If you claim ₹3,00,000 or more in combined deductions (80C + 80D + HRA + home loan interest), the Old Regime frequently comes out ahead, especially in the middle income brackets. This calculator runs both scenarios side by side using your actual numbers so you don't have to guess.

Note: This tool provides an estimate for salaried individuals and is not a substitute for professional tax advice. It does not account for capital gains, business income, or every possible deduction. Cess of 4% is added to tax in both regimes as per current law, and marginal relief is applied near the New Regime's ₹12,00,000 rebate threshold.