Old vs New Tax Regime
Compare your tax under the old and new regimes side-by-side and see which one saves you more (FY 2025-26).
Formula last reviewed 4 August 2026 · How we verify our calculators
New regime saves you
- Old regime tax
- ₹33,800
- New regime tax
- ₹0
| Description | Old Regime | New Regime |
|---|---|---|
| Gross salary (after allowances exempt under both regimes) | ||
| Deductions allowed only in old regime (excl. standard deduction) | ₹3,25,000 | ₹0 |
| Less: standard deduction | ₹50,000 | ₹75,000 |
| Income from salary | ₹8,25,000 | ₹11,25,000 |
| Income from self-occupied house property | ||
| Income other than salary | ||
| Gross total income | ₹8,25,000 | ₹11,25,000 |
| Less: eligible deductions | ₹2,25,000 | ₹0 |
| Taxable income | ₹6,00,000 | ₹11,25,000 |
| Income tax after relief u/s 87A | ₹32,500 | ₹0 |
| Surcharge | ₹0 | ₹0 |
| Health and education cess | ₹1,300 | ₹0 |
| Total tax liability | ₹33,800 | ₹0 |
Updates live as you type
Frequently asked questions
It depends on your deductions. The new regime wins for most people with few deductions; the old regime can win if you claim large HRA, 80C and home-loan benefits. This tool computes both and recommends the cheaper one.
The same salary, taxed two different ways, two different answers
Every salaried taxpayer now makes an active annual choice: the new regime's lower slabs and bigger standard deduction, or the old regime's HRA, 80C, 80D and home-loan deductions. Guess wrong and it can cost tens of thousands of rupees — this calculator runs both in full on your exact numbers rather than leaving you to guess which one wins.
Running your numbers through the rules twice, not once
Enter income, HRA and rent details, and every deduction you're eligible for. The calculator applies the FY 2025-26 rules twice in parallel: once allowing only what the new regime permits (the ₹75,000 standard deduction and nothing else), and once allowing the old regime's full set — HRA exemption, the ₹50,000 standard deduction, Section 80C up to ₹1.5 lakh, 80D, home loan interest and more. Each pass then applies that regime's own slab rates, Section 87A rebate, surcharge and cess, producing two independent, directly comparable tax figures.
The same ₹12 lakh salary lands ₹33,800 apart
At the defaults — ₹12,00,000 gross salary, a ₹1,00,000 HRA exemption, and ₹2,25,000 of old-regime-only deductions across 80C, 80D and others — the new regime brings taxable income to ₹11,25,000, which falls entirely under the ₹12 lakh Section 87A rebate threshold, for ₹0 tax. The old regime, after the same HRA and deductions, gets taxable income down to ₹6,00,000 but still owes ₹33,800, because its rebate threshold sits at a lower ₹5 lakh. Net result for this profile: the new regime saves ₹33,800.
Why there's no single right answer — only your right answer
The pattern that tends to hold: the new regime wins for people with modest HRA and few Chapter VI-A claims, since its lower slabs and larger standard deduction outweigh whatever it disallows. The old regime pulls ahead instead for people with substantial HRA — especially renting in a metro city — a sizeable home loan, and maxed-out 80C and 80D investments; the more legitimate deductions you can genuinely claim, the more likely it wins. Because that crossover point depends entirely on your specific numbers rather than a rule of thumb anyone can quote you, running both scenarios here is the only reliable way to know which regime actually costs you less this year.
Sources
- Income Tax Department, Government of India — old and new regime slab comparison, FY 2025-26