About this income tax calculator
India old vs new tax regime calculator for FY 2025-26
Since 2020 India has offered two income tax regimes, and you choose one each year when you file your return. The new regime has lower slab rates and a ₹75,000 standard deduction for salaried employees, but it drops almost all deductions and exemptions. The old regime keeps the deductions you know — Section 80C, HRA, home loan interest, 80D — but taxes at higher rates. This calculator runs both regimes side by side for FY 2025-26 / AY 2026-27 and tells you which one leaves more in your pocket.
How the comparison works
- 1
Enter your income and details
Add your gross income (monthly or annual), age, residency and whether you are salaried.
- 2
Add old-regime deductions
Enter your 80C/NPS contributions, HRA, home loan interest, 80D and other old-regime deductions.
- 3
Both regimes are computed
The calculator applies each regime's slabs, standard deduction, rebate, surcharge and cess separately.
- 4
Compare the totals
The recommended regime is the one with the lower total tax, with the exact saving shown.
New regime slabs for FY 2025-26 (AY 2026-27)
| Annual taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 to ₹8,00,000 | 5% |
| ₹8,00,001 to ₹12,00,000 | 10% |
| ₹12,00,001 to ₹16,00,000 | 15% |
| ₹16,00,001 to ₹20,00,000 | 20% |
| ₹20,00,001 to ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
The new regime gives a ₹75,000 standard deduction to salaried taxpayers. A rebate under Section 87A can zero out tax for taxable income up to ₹12,00,000 (with marginal relief above).
Worked example: salaried employee earning ₹18,00,000 a year
A 30-year-old resident salaried employee earns ₹1,50,000 per month (₹18,00,000 a year) and claims ₹1,50,000 under 80C plus ₹50,000 in NPS in the old regime.
- New regime: tax + 4% cess
- ₹1,50,800
- Old regime: tax + 4% cess
- ₹2,88,600
- Saving in the new regime
- ≈ ₹1,37,800
Estimated result
New regime is the better choice for this taxpayer
Even with ₹2,00,000 of old-regime deductions, the new regime wins because its lower rates outweigh the lost deductions at this income level.
When the old regime still wins
- Taxpayers claiming large 80C + NPS contributions (up to ₹2,50,000 combined).
- Those with significant HRA or home loan interest that lowers old-regime taxable income.
- Salaried employees with big 80D medical and 80CCD(2) contributions.
- Middle incomes around ₹10–15 lakh where deductions can pull taxable income into a much lower slab.
You can switch every year
Official references
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