Old vs New Tax Regime Calculator
TaxCompare income tax under old and new regime for FY 2025-26. Enter your income and deductions to instantly see which tax regime saves you more money.
New regime allows only ā¹75,000 standard deduction. Old regime allows ā¹50,000 + all above deductions.
New Regime
Default from FY 2023-24
ā¹0
total tax (incl. cess)
Old Regime
Opt-in required
ā¹0
total tax (incl. cess)
Both regimes result in equal tax for these inputs.
Includes 87A rebate, surcharge, and 4% health & education cess. FY 2025-26 slabs.
What is a Tax Regime?
The Old vs New Tax Regime Calculator compares your income tax liability under both regimes for Financial Year 2025-26, using your actual gross income and deductions. Rather than navigating tax slabs manually, you enter five numbers and instantly see which regime saves you more money ā expressed in rupees, not percentages.
India operates two parallel income tax systems for individuals. The old regime has been the default structure for decades: salaried employees claim deductions under Section 80C (PPF, ELSS, life insurance), Section 80D (health insurance), HRA exemption, home loan interest under Section 24(b), and standard deduction ā all reducing taxable income before slab tax is applied. The new regime, introduced in 2020 and significantly restructured in Budget 2023 and Budget 2025, eliminates nearly all these deductions in exchange for lower slab rates and a substantially higher 87A rebate.
The pivotal change in FY 2025-26 is the new regime's Section 87A rebate threshold: individuals whose net taxable income (after the ā¹75,000 standard deduction) does not exceed ā¹12 lakh pay zero income tax. This makes the new regime compelling for a large fraction of India's salaried population. For those above ā¹12 lakh, the calculus depends on the quantum of deductions ā particularly HRA, home loan interest, and 80C investments ā which remain available only under the old regime.
The Income Tax Calculator models both regimes with the same slab structure and is useful for more granular income breakdowns. This calculator focuses specifically on the regime comparison with your deduction inputs, making the decision immediately actionable.
How to use this Tax Regime calculator
Enter your Annual Gross Income ā your total salary before any deductions (CTC minus non-cash benefits like gratuity and ESOPs is a reasonable proxy). Use your gross taxable salary, not net-of-TDS income. Common values are ā¹5 lakh to ā¹30 lakh for most salaried employees.
Enter 80C Investments ā the total of eligible investments and payments under Section 80C in the financial year: EPF employee contribution, PPF deposits, ELSS mutual fund investments, life insurance premiums, home loan principal repayment, children's tuition fees, and tax-saving FD. The maximum deductible limit is ā¹1.5 lakh ā any amount beyond that has no additional tax benefit under the old regime.
Enter 80D Health Insurance Premium ā total health insurance premiums paid for self, spouse, children (up to ā¹25,000 or ā¹50,000 if you are a senior citizen) and for parents (an additional ā¹25,000 or ā¹50,000 if parents are senior citizens). The maximum deductible limit here is ā¹75,000.
Enter your HRA Exemption ā if you live in rented accommodation and your employer pays HRA, compute your eligible exemption using our HRA Exemption Calculator and enter the figure here. HRA exemption is one of the most impactful old-regime deductions for metro residents and can run into lakhs per year.
Enter Other Deductions ā include Section 80CCD(1B) additional NPS deduction (up to ā¹50,000), Section 80TTA/TTB savings account interest (up to ā¹10,000/ā¹50,000), Section 80G donations, home loan interest under Section 24(b) (up to ā¹2 lakh for self-occupied property), and any other eligible deductions.
Compare the results ā read Tax ā New Regime and Tax ā Old Regime side by side. The regime with the lower tax is your optimal choice. Confirm by checking the You Save figure to understand the annual financial impact of the decision.
Formula & Methodology
New Regime Taxable Income: Taxable_New = max(0, Gross_Income ā 75,000) Old Regime Taxable Income: Taxable_Old = max(0, Gross_Income ā 50,000 ā min(80C, 1,50,000) ā min(80D, 75,000) ā HRA ā Others) Slab Tax ā New Regime FY 2025-26: | Taxable Income (ā¹) | Rate | |---|---| | 0 ā 4,00,000 | 0% | | 4,00,001 ā 8,00,000 | 5% | | 8,00,001 ā 12,00,000 | 10% | | 12,00,001 ā 16,00,000 | 15% | | 16,00,001 ā 20,00,000 | 20% | | 20,00,001 ā 24,00,000 | 25% | | Above 24,00,000 | 30% | 87A Rebate ā New Regime: If Taxable_New ā¤ ā¹12,00,000 ā Tax = 0; else marginal relief applies (Tax ā¤ Taxable_New ā 12,00,000) Slab Tax ā Old Regime FY 2025-26: | Taxable Income (ā¹) | Rate | |---|---| | 0 ā 2,50,000 | 0% | | 2,50,001 ā 5,00,000 | 5% | | 5,00,001 ā 10,00,000 | 20% | | Above 10,00,000 | 30% | 87A Rebate ā Old Regime: If Taxable_Old ā¤ ā¹5,00,000 ā Tax = 0 Surcharge on Base Tax (both regimes): - Income > ā¹50 lakh: 10% surcharge - Income > ā¹1 crore: 15% - Income > ā¹2 crore: 25% - Income > ā¹5 crore: 37% (old) / 25% (new regime cap) Final Tax = (Base_Tax + Surcharge) Ć 1.04 (4% cess) Worked example ā ā¹10 lakh gross income, 80C ā¹1.5 lakh, 80D ā¹25,000: - New regime taxable: ā¹10,00,000 ā ā¹75,000 = ā¹9,25,000 - Slab tax: ā¹0 + ā¹20,000 (4ā8L @5%) + ā¹12,500 (8ā9.25L @10%) = ā¹32,500 - 87A rebate: taxable ā¤ ā¹12L ā tax = 0. Total new tax = ā¹0 - Old regime taxable: ā¹10,00,000 ā ā¹50,000 ā ā¹1,50,000 ā ā¹25,000 = ā¹7,75,000 - Slab tax: ā¹12,500 (2.5ā5L @5%) + ā¹55,000 (5ā7.75L @20%) = ā¹67,500 - 87A rebate: taxable > ā¹5L ā no rebate - Cess: ā¹67,500 Ć 1.04 = ā¹70,200. Total old tax = ā¹70,200 - Result: New regime saves ā¹70,200 in this scenario. For employees wanting a complete salary breakdown including PF contributions and professional tax before using this calculator, start with the Salary / CTC Calculator.
Frequently Asked Questions