🇮🇳 Income Tax Old vs New Regime Calculator — FY 2025-26
Enter your salary and deductions to instantly compare tax under both regimes. See which one saves you more money — updated for AY 2026-27.
India's dual income tax regime — introduced in Budget 2020 and significantly revised in Budget 2023 — gives salaried employees a genuine choice for the first time. The new regime offers lower slab rates and a ₹75,000 standard deduction but strips away most Chapter VI-A deductions. The old regime keeps higher rates but lets you claim HRA, 80C (up to ₹1.5 lakh), 80D medical insurance, home loan interest, and other exemptions.
The break-even point depends entirely on your deduction profile. In our analysis, if your total deductions (80C + 80D + HRA + others) exceed roughly ₹3.75 lakh, the old regime generally saves more tax. Below that threshold, the new regime's lower slabs win. But edge cases — like the Section 87A rebate making income up to ₹7 lakh tax-free under the new regime — can shift the answer unexpectedly.
This calculator models both regimes side-by-side using the exact slab structure from the Income Tax Act. Enter your gross salary, any bonuses, and your claimed deductions — it computes tax, surcharge (for income above ₹50 lakh), and 4% health and education cess for both regimes so you can make an informed choice before telling your employer which regime to apply for TDS.
Quick answer
FY 2025-26: compare old regime (deductions) vs new regime (lower slabs, ₹75k standard deduction)
The new regime uses updated slabs and a ₹75,000 standard deduction. The old regime allows 80C, 80D, HRA, and other deductions. Enter your numbers below to see which saves more tax.
Your income details
Enter amount in lakhs — e.g. 12 for ₹12,00,000
Old Regime Deductions (₹ Lakhs)
PPF, ELSS, LIC, home loan principal
Health insurance premium
House rent allowance
80E, 80G, NPS 80CCD(1B), home loan interest etc
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Enter your salary to compare regimes
Results update instantly
🆕 New Regime Slabs FY 2025-26
Std deduction: ₹75,000
| Taxable Income | Rate |
|---|---|
| ₹0 – ₹4.00 L | 0% |
| ₹4.00 L – ₹8.00 L | 5% |
| ₹8.00 L – ₹12.00 L | 10% |
| ₹12.00 L – ₹16.00 L | 15% |
| ₹16.00 L – ₹20.00 L | 20% |
| ₹20.00 L – ₹24.00 L | 25% |
| Above ₹24.00 L | 30% |
📋 Old Regime Slabs FY 2025-26
Std deduction: ₹50,000
| Taxable Income | Rate |
|---|---|
| ₹0 – ₹2.50 L | 0% |
| ₹2.50 L – ₹5.00 L | 5% |
| ₹5.00 L – ₹10.00 L | 20% |
| Above ₹10.00 L | 30% |
How to use and formula
How to compare old vs new regime
Enter gross salary in lakhs, then deductions available only under the old regime.
- Enter annual gross salary (lakhs).
- Add 80C, 80D, HRA, and other deductions for the old regime.
- Compare total tax, cess, and take-home for both regimes.
- Choose the regime with lower tax before filing your return.
Tax = slab tax on taxable income
Taxable income = gross − standard deduction − other deductions
Cess = 4% on tax + surcharge
Higher deductions usually favour the old regime; minimal deductions often favour the new regime.
India income tax — old regime vs new regime
Individual income tax in India is levied by the Union government on taxable income above the basic exemption limit. For Assessment Year 2026-27 (Financial Year 2025-26), taxpayers choose between the old regime (with deductions under sections 80C, 80D, HRA, etc.) and the new regime (lower slab rates but fewer deductions). Salary earners, freelancers, and pensioners must evaluate which regime minimizes tax for their specific income mix.
The new regime is the default for salaried employees unless they opt into the old regime each year where permitted. Old regime benefits high savers who fully use 80C (up to ₹1.5 lakh), home loan interest, and health insurance premiums. New regime suits those with limited deductions and simpler finances. This calculator compares both side by side using FY 2025-26 slabs — not a substitute for Form 16 reconciliation or advance tax planning.
Tax slabs, surcharge, and cess
Progressive slabs apply: income in each bracket is taxed at its rate, not the entire income at the top rate. Surcharge applies on high incomes (thresholds vary by regime) and health and education cess (4%) applies on tax plus surcharge. Senior citizen and super senior citizen exemption limits differ under the old regime.
Capital gains, special rate income, and presumptive taxation under 44AD/44ADA are outside this calculator's scope. Include only salary, pension, and other ordinary income you enter. For accurate withholding, employers use TDS tables that may differ slightly from annual return due to timing of declarations and proofs.
Key deductions under the old regime
Section 80C bundles PPF, ELSS, life insurance premium, principal home loan repayment, and other qualifying investments up to ₹1.5 lakh. Section 80D covers health insurance premiums with limits that increase for senior citizens. HRA exemption requires rent paid and metro/non-metro rules. Standard deduction for salaried employees reduces taxable salary before other deductions.
Enter realistic deduction amounts — overstating 80C in the calculator understates tax versus what the Income Tax Department will accept without proof. New regime allows a higher standard deduction for salaried taxpayers but disallows most Chapter VI-A deductions except specified items like employer NPS contributions under 80CCD(2).
TDS, advance tax, and ITR filing
Employers deduct TDS monthly under Section 192 based on declared regime and investments. Freelancers face TDS under 194J and other sections. If total tax liability exceeds ₹10,000 after TDS, pay advance tax in quarterly instalments to avoid interest under Sections 234B and 234C.
File the appropriate ITR form (ITR-1, ITR-2, etc.) by the due date, typically July 31 for non-audit individuals. Reconcile AIS and Form 26AS with your calculations. This tool estimates annual liability; verify with the Income Tax e-filing portal or a chartered accountant before paying self-assessment tax.
Worked examples — salary comparison
Example: ₹12 lakh gross salary, ₹1.5 lakh 80C, ₹25,000 80D, old regime standard deduction — compare output to new regime with only standard deduction. The calculator shows tax, cess, and effective rate for each. A middle-income earner with heavy 80C and HRA often saves under old regime; a young professional with no investments may pay less under new regime.
Adjust inputs for NPS employer contribution, professional tax, and other allowances taxable per your offer letter. Metro HRA calculations need basic salary, DA, and rent paid — use employer worksheets for exact HRA if available.
What this calculator does not cover
Foreign income, DTAA relief, house property loss set-off, business income, and cryptocurrency reporting require specialized treatment. Senior citizen slab benefits and marginal relief on surcharge are approximated — verify on official charts for edge cases near surcharge thresholds.
Tax law changes in Union Budget may alter slabs mid-planning season. We update rates for FY 2025-26; check incometax.gov.in for notifications. Use results for planning and education, not as legal advice or filing authority.
Common mistakes to avoid
Ignoring surcharge and cess
High incomes attract surcharge; 4% health & education cess applies on tax plus surcharge.
Comparing regimes without the same gross income
Use identical salary, bonus, and other income when comparing old vs new.
Assuming HRA works in the new regime
Most Chapter VI-A deductions including HRA apply only under the old regime.
Using this for TDS filing without Form 16
Employer TDS and Form 16 may include exemptions not captured here.
Official source and review note
Rates and rules on this page were last reviewed in May 2026 against Income Tax Department, India. Use the linked authority for filing, registrations, or address-specific compliance.
Pick the regime that lowers your tax for FY 2025-26
Compare both regimes each financial year — your optimal choice can change when salary or deductions change.