Compare your income tax liability under the Old and New tax regimes side-by-side, and find out which regime saves you more money.
How to Use the Old vs New Tax Regime Calculator
Enter your "Annual Gross Income (₹)".
Enter your "Total Deductions" - the sum of exemptions/deductions like 80C, 80D, HRA exemption, and home loan interest, which apply only under the Old Regime.
Click "Compare Regimes" to see the taxable income and tax payable under both regimes, and which one saves you more.
How the Comparison Is Worked Out
The calculator runs your income through both regimes in parallel, using the rates that apply to an individual below 60 for FY 2025-26 and later years (the Budget 2025 rates):
Old regime: Gross income − ₹50,000 standard deduction − the deductions you enter = taxable income. Tax is worked out on the old slabs, and if taxable income is ₹5 lakh or less, a rebate of up to ₹12,500 brings the tax to nil.
New regime: Gross income − ₹75,000 standard deduction = taxable income. Your deductions are ignored. Tax is worked out on the new slabs, and if taxable income is ₹12 lakh or less, a rebate of up to ₹60,000 brings the tax to nil.
4% Health and Education Cess is then added to the tax in each regime, and the two totals are compared.
Tax Slabs Used (FY 2025-26 onwards)
Taxable income
Old regime rate
New regime rate
Up to ₹2.5 lakh
Nil
Nil
₹2.5 – 4 lakh
5%
Nil
₹4 – 5 lakh
5%
5%
₹5 – 8 lakh
20%
5%
₹8 – 10 lakh
20%
10%
₹10 – 12 lakh
30%
10%
₹12 – 16 lakh
30%
15%
₹16 – 20 lakh
30%
20%
₹20 – 24 lakh
30%
25%
Above ₹24 lakh
30%
30%
Under the new regime, a salaried person with gross salary up to ₹12.75 lakh pays no tax at all, because the ₹75,000 standard deduction brings taxable income down to ₹12 lakh and the rebate covers the rest. Just above ₹12 lakh of taxable income, marginal relief applies: the tax cannot be more than the income earned above ₹12 lakh. The calculator applies this relief too.
Worked Example
Suppose your gross salary is ₹18 lakh and you claim ₹3.5 lakh of old-regime deductions: ₹1.5 lakh under 80C, ₹25,000 for health insurance under 80D and ₹1.75 lakh of home loan interest.
Old regime: Taxable income = 18,00,000 − 50,000 − 3,50,000 = ₹14,00,000. Tax = 12,500 + 1,00,000 + 1,20,000 = ₹2,32,500. With 4% cess, ₹2,41,800.
New regime: Taxable income = 18,00,000 − 75,000 = ₹17,25,000. Tax = 20,000 + 40,000 + 60,000 + 25,000 = ₹1,45,000. With 4% cess, ₹1,50,800.
Even with ₹3.5 lakh of deductions, the new regime is cheaper here by ₹91,000. At this salary, the old regime only starts to win once deductions go above roughly ₹6.4 lakh.
How Much in Deductions Makes the Old Regime Worth It?
The table shows the approximate total deductions (on top of the standard deduction) at which both regimes give the same tax, using this calculator's rules. If your deductions are below this figure, the new regime costs less.
Gross income
Deductions needed to break even
₹12.75 lakh
New regime tax is nil, so the old regime can at best match it
₹15 lakh
about ₹5.4 lakh
₹18 lakh
about ₹6.4 lakh
₹20 lakh
about ₹7.1 lakh
₹25 lakh and above
about ₹8 lakh
Few people reach these levels with 80C and 80D alone, which are capped at ₹1.5 lakh and (for most families) ₹25,000 to ₹75,000. The old regime usually wins only when you also have a large HRA exemption and home loan interest on a self-occupied house (up to ₹2 lakh).
Things to Keep in Mind
Enter only deductions you can actually claim and prove: HRA exemption (use the HRA calculator for the exact figure), 80C investments, 80D premiums, home loan interest, NPS under 80CCD(1B) and so on. Do not include the standard deduction, which is already applied.
Employer contributions to NPS (80CCD(2)) are allowed in both regimes, so they do not change the comparison much; this calculator does not model them separately.
Salaried people can choose a regime every year when filing the return. People with business income can switch back from the new regime only once in their lifetime, so they should decide more carefully.
Rates for senior citizens differ under the old regime, and surcharge applies above ₹50 lakh of income. The calculator does not include either.
From 1 April 2026 the Income-tax Act, 2025 replaces the 1961 Act, and section numbers such as 80C, 80D and 87A are renumbered in the new law. The rates above are as announced in Budget 2025; confirm current rules on the Income Tax Department's e-filing portal before filing.
Frequently Asked Questions
This calculator applies a ₹50,000 standard deduction under the Old Regime, and a ₹75,000 standard deduction under the New Regime, before applying the respective slab rates.
Most common deductions like 80C, 80D, and HRA exemption are not available under the New Regime (other than the standard deduction), so this calculator only subtracts your entered deductions from the Old Regime's taxable income.
It is an estimate for a resident individual below 60. It applies the current slabs, the rebate for taxable income up to ₹5 lakh (old regime) or ₹12 lakh (new regime), marginal relief and 4% cess. It does not include surcharge on income above ₹50 lakh, senior citizen slabs, or special rates on capital gains. Check your final figures on the Income Tax Department's e-filing portal or with a tax professional.
The new regime is the default. Salaried employees are usually asked by their employer at the start of the year which regime to use for TDS, and can still pick the other regime when filing the return, as long as it is filed by the due date.
Taxable income up to ₹12 lakh carries no tax under the new regime, because the rebate cancels the slab tax. For a salaried person, that means a gross salary up to ₹12.75 lakh after the ₹75,000 standard deduction. Income taxed at special rates, such as capital gains on shares, does not get this rebate.