Confused about whether the old or new tax regime saves you more in FY 2025-26 (AY 2026-27)? This free calculator compares your income tax under both regimes for your actual salary structure — factoring in the ₹75,000 standard deduction, Section 80C, HRA, home loan interest, NPS, the ₹60,000 Section 87A rebate and the 4% cess — and tells you exactly which regime is cheaper and by how much.
All styles are scoped under #stg-regime-calc so they won't touch your theme. -->Old vs New Tax Regime — which saves you more?
Enter your income and deductions. We compute tax under both regimes for your salary structure — including the ₹60,000 rebate, standard deduction, and 4% cess.
Your income
Enables the standard deduction (₹75k new · ₹50k old).
Deductions & exemptions
⚑ These mostly reduce tax under the old regime only. The new regime ignores them (bar the standard deduction & employer NPS).
Not sure of your HRA exemption? A dedicated HRA calculator is coming — for now enter the exempt figure from your Form 16.
New Regime
Old Regime
How this works: Estimates for resident individuals, FY 2025-26 (AY 2026-27). New regime: ₹75,000 standard deduction, slab rates from ₹4L, and full §87A rebate (up to ₹60,000) when taxable income ≤ ₹12,00,000, with marginal relief just above it. Old regime: ₹50,000 standard deduction, age-based slabs, and §87A rebate (up to ₹12,500) when taxable income ≤ ₹5,00,000. Both add 4% health & education cess. Surcharge is applied above ₹50L (new regime capped at 25%); surcharge marginal relief near those thresholds is not yet modelled, so very high incomes are indicative. This is an educational estimate, not tax advice — confirm with a professional before filing.
How to use this old vs new regime calculator
- Enter your gross annual salary and any other income.
- Pick your age group (it changes the old-regime exemption for senior citizens).
- Fill in your deductions — 80C, 80D, HRA exemption, home loan interest, NPS. These mostly help under the old regime.
- The result updates instantly, showing tax under each regime, your yearly saving, and a full breakdown.
New tax regime slabs — FY 2025-26
The new regime is the default. After the Budget 2025 changes, income up to ₹12,00,000 is effectively tax-free because of the enhanced Section 87A rebate (up to ₹60,000). Salaried employees also get a ₹75,000 standard deduction, making salary up to about ₹12.75 lakh tax-free.
| Taxable income | Tax rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Old tax regime slabs — FY 2025-26 (below 60)
The old regime keeps lower slab thresholds but lets you claim deductions such as 80C (up to ₹1.5 lakh), 80D, HRA, home loan interest (up to ₹2 lakh) and NPS. A ₹50,000 standard deduction applies to salaried individuals, and a Section 87A rebate makes income up to ₹5,00,000 tax-free.
| Taxable income | Tax rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Senior citizens (60-80) get a ₹3,00,000 basic exemption and super-senior citizens (80+) get ₹5,00,000. The calculator applies this automatically.
Worked examples: which regime wins?
Here are three salaried scenarios for FY 2025-26. Notice how the new regime wins even when you claim significant deductions — because its slabs and rebate are now so generous.
| Your profile | Old regime tax | New regime tax | You save with |
|---|---|---|---|
| ₹9,00,000 salary, ₹1.5L in 80C | ₹54,600 | ₹0 | New — ₹54,600 |
| ₹15,00,000 salary, 80C + 80D + ₹2L home loan + NPS | ₹1,24,800 | ₹97,500 | New — ₹27,300 |
| ₹25,00,000 salary, full deductions + ₹2L HRA | ₹3,66,600 | ₹3,19,800 | New — ₹46,800 |
The old regime typically only wins if your total deductions are very large relative to your income — for example, high HRA in a metro city combined with a full home loan and 80C. That is exactly what the calculator above checks for your numbers.
Frequently asked questions
Which is better, the old or new tax regime for FY 2025-26?
It depends on your deductions. The new regime is the default and, after Budget 2025, is better for most salaried people because tax is nil up to ₹12 lakh of taxable income (₹12.75 lakh for the salaried). The old regime only wins when your deductions — 80C, 80D, HRA, home loan interest, NPS — are large. Use the calculator above to see your exact answer.
How much income is tax-free under the new regime in FY 2025-26?
Up to ₹12,00,000 of taxable income is effectively tax-free thanks to the Section 87A rebate of up to ₹60,000. For salaried individuals, the ₹75,000 standard deduction pushes the tax-free gross salary to about ₹12,75,000.
Can I claim 80C, HRA and home loan interest under the new regime?
No. The new regime does not allow most deductions and exemptions such as 80C, 80D, HRA or home loan interest on a self-occupied house. The main exceptions are the standard deduction and the employer’s NPS contribution under Section 80CCD(2).
Which regime is the default, and can I switch every year?
The new regime is the default since FY 2023-24. A salaried person without business income can choose between the two regimes every year while filing. Those with business or professional income face restrictions and must use Form 10-IEA to opt out.
Is this tax calculator accurate, and is it tax advice?
The calculator uses the official FY 2025-26 (AY 2026-27) slabs, standard deduction, Section 87A rebate with marginal relief, surcharge and 4% cess. It is an educational estimate, not tax advice. Please confirm with a qualified professional before filing.
Related tool: curious what actually lands in your bank each month? Try our Take-Home Salary Calculator to convert your CTC into monthly in-hand pay.
Need your HRA figure? Work out how much House Rent Allowance is tax-free with our HRA Exemption Calculator before entering it above.
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