FY 2025-26 | AY 2026-27

Old vs New Tax Regime Calculator

Compare income tax under both regimes side by side. Enter salary, HRA, 80C, 80D and home loan interest to see which regime saves you more.

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Annual Gross Salary₹12,00,000

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₹1,00,000₹50,00,000

Annual Basic Salary₹4,80,000

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Basic + DA, used for HRA exemption

HRA Details (Old Regime)

HRA Received (per year)₹2,40,000

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Rent Paid (per year)₹3,00,000

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City Type

Metro: Delhi, Mumbai, Kolkata, Chennai only

Chapter VI-A Deductions

Section 80C (per year)₹1,50,000

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Max ₹1,50,000 (PPF, ELSS, LIC, EPF etc.)

Section 80D (per year)₹25,000

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Self/family up to ₹25K; parents extra if senior citizens

Home Loan Interest | Section 24(b)₹0

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Max ₹2,00,000 for self-occupied property

Updates live as you type

Old vs New Tax Regime: Which Should You Choose in FY 2025-26?

Every salaried employee in India faces the same question at the start of each financial year: should I opt for the old tax regime or the new tax regime? The answer is not universal - it depends entirely on how much you can claim in deductions. Our old vs new tax regime calculator gives you a precise, side-by-side comparison using your actual salary, HRA, investments, and home loan details.

The new tax regime is the default from FY 2023-24 onwards. It offers lower slab rates and a higher standard deduction of ₹75,000, but you cannot claim HRA, Section 80C, 80D, or home loan interest. The old regime has higher slab rates but allows all these deductions. For many salaried people paying rent with active investments, the old regime still wins by a significant margin.

New Tax Regime Slabs | FY 2025-26

Income Slab	Tax Rate
₹0L - ₹4L	Nil
₹4L - ₹8L	5%
₹8L - ₹12L	10%
₹12L - ₹16L	15%
₹16L - ₹20L	20%
₹20L - ₹24L	25%
Above ₹24 lakh	30%

Old Tax Regime Slabs | FY 2025-26

Income Slab	Tax Rate
₹0L - ₹3L	Nil
₹3L - ₹5L	5%
₹5L - ₹10L	20%
Above ₹10 lakh	30%

When Does the Old Regime Save More Tax?

Choose the old regime if you have most of these:

HRA exemption - you pay rent in a city where HRA is part of your salary
Full 80C utilisation - ₹1.5 lakh in PPF, ELSS, LIC, or EPF
Health insurance - Section 80D premium for self, family, or parents
Home loan interest - up to ₹2 lakh deduction under Section 24(b)
Combined deductions above ~₹3.5 lakh - the tipping point for most salary levels

Sample Comparison: ₹15 Lakh Salary

Component	Old Regime	New Regime
Gross Salary	₹15,00,000	₹15,00,000
Standard Deduction	₹50,000	₹75,000
HRA + 80C + 80D + Home Loan	~₹4,97,000	Not allowed
Taxable Income	~₹9,53,000	₹14,25,000
Total Tax + Cess	Lower	Higher

Exact figures depend on your HRA exemption. Use the calculator above with your numbers for a precise comparison. Also try our HRA Exemption Calculator to compute your exact HRA benefit.

Frequently Asked Questions

Common questions about tax regime

It depends on your total deductions. If your combined deductions (HRA exemption, 80C, 80D, home loan interest) exceed roughly ₹3.5-4 lakh, the old regime usually saves more tax. If you have few deductions, the new regime with its lower slab rates and ₹75,000 standard deduction is typically better. Use this calculator with your exact numbers to get a definitive answer.

Under the new tax regime for FY 2025-26: Nil up to ₹4 lakh, 5% from ₹4-8 lakh, 10% from ₹8-12 lakh, 15% from ₹12-16 lakh, 20% from ₹16-20 lakh, 25% from ₹20-24 lakh, and 30% above ₹24 lakh. Salaried employees get a ₹75,000 standard deduction. Section 87A rebate of up to ₹60,000 makes income up to ₹12 lakh effectively tax-free.

No. HRA exemption under Section 10(13A) is only available under the old tax regime. The new regime does not allow HRA, 80C, 80D, or home loan interest deductions - only the standard deduction of ₹75,000 applies.

Under the old regime, you can claim: standard deduction (₹50,000), HRA exemption, Section 80C up to ₹1.5 lakh (PPF, ELSS, LIC, EPF), Section 80D health insurance premium, Section 24(b) home loan interest up to ₹2 lakh, and additional deductions like 80CCD(1B) for NPS.

For FY 2025-26, salaried individuals with taxable income up to ₹12 lakh pay zero tax due to the enhanced Section 87A rebate of ₹60,000. With the ₹75,000 standard deduction, gross salary up to approximately ₹12.75 lakh can be effectively tax-free under the new regime.

Salaried employees can switch between old and new regime each financial year when filing their ITR, regardless of what they declared to their employer for TDS. Business income earners who opt out of the new regime cannot switch back easily.

HRA exemption is the minimum of three values: (1) actual HRA received, (2) rent paid minus 10% of basic salary, and (3) 50% of basic salary for metro cities or 40% for non-metro. Only Delhi, Mumbai, Kolkata, and Chennai qualify as metro cities for HRA. Use our HRA Exemption Calculator for the exact amount.

Salaried employees get ₹75,000 standard deduction under the new tax regime and ₹50,000 under the old regime for FY 2025-26. This is automatically deducted from gross salary - no proof or bills required.

Yes. Home loan interest up to ₹2 lakh per year under Section 24(b) is deductible only under the old regime. Combined with 80C and HRA, a home loan can make the old regime significantly cheaper for many salaried taxpayers.

Choose the old regime if you pay rent (HRA exemption), invest ₹1.5 lakh in 80C instruments, have health insurance (80D), or pay home loan interest. Run both scenarios in this calculator - if old regime tax is lower, opt for old regime when filing your ITR.