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Updated for FY 2025-26

Old vs New Tax Regime Comparator

Instantly find out which tax regime will save you more money this year.

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Enter your total income before any deductions

OLD REGIME ONLY
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Max ₹1.5 Lakh

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Total Deductions in Old Regime: ₹2,25,000

Enter your gross income to compare both tax regimes

How to Use This Tax Regime Comparator

This tool helps you make an informed decision between the Old and New Tax Regimes introduced by the Government of India. Simply enter your gross annual income and the deductions you claim under the Old Regime (80C, 80D, home loan interest, etc.). The calculator instantly shows your tax liability under both regimes.

Key Differences Between the Two Regimes

  • New Regime: Lower tax rates, higher standard deduction (₹75,000), but almost no deductions allowed.
  • Old Regime: Higher tax rates in most slabs, but allows full benefit of deductions under Chapter VI-A (80C, 80D, HRA, etc.).

When is the New Regime Better?

The New Regime is generally better if your total deductions are less than ₹3.5–4 lakh (depending on your income level). Most salaried individuals with basic investments now prefer the New Regime because of the reduced rates and higher rebate.

When is the Old Regime Better?

If you have high deductions — for example, you max out 80C (₹1.5L), have a home loan, pay significant health insurance premiums, or claim HRA — the Old Regime can still save you a substantial amount of tax.

Frequently Asked Questions

Which tax regime is better – Old or New?

It depends on your income and deductions. If you have significant deductions (80C, HRA, home loan interest, etc.), the Old Regime is often better. If you have fewer deductions, the New Regime usually results in lower tax.

Can I switch between Old and New regime every year?

Salaried employees can switch every year. Business owners and professionals can switch only once in their lifetime (with some exceptions).

What is the standard deduction in both regimes?

New Regime: ₹75,000 (from FY 2024-25). Old Regime: ₹50,000. The New Regime gives a higher standard deduction.

Up to what income is tax zero in the New Regime?

Up to ₹7 lakh gross income, you pay zero tax in the New Regime due to the increased rebate under Section 87A.

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