Old vs New Tax Regime
Compare both regimes and see which saves you more.
Deductions apply to the old regime only. The new regime uses only the standard deduction.
— New regime tax
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How this is calculated
We compute your tax under both regimes using current slabs (including the standard deduction, section 87A rebate, and 4% cess), apply your declared deductions to the old regime only, and show which leaves more in your pocket. Slabs are based on FY 2025-26 and should be verified for your assessment year.
Which regime is better?
If you claim large deductions (80C, home loan, HRA), the old regime can win. If you claim few deductions, the new regime's lower slabs usually win.
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How the comparison works
The calculator computes your tax liability under both regimes using the FY 2025-26 slabs and shows them side by side. The old regime keeps the classic deductions — Section 80C investments, 80D health premiums, HRA, home-loan interest — but applies higher slab rates. The new regime offers lower rates and a higher effective exemption, but forgoes most deductions. Which one wins is purely arithmetic on your numbers: salary, rent, loans, and how much you actually invest in deductible instruments. Enter them above and the guessing ends.
Rules of thumb (and their limits)
Broadly: people who use deductions heavily — full 80C, a home loan, HRA in a metro — often still save more in the old regime, while those with few deductions usually pay less under the new one. But the crossover point shifts with every Budget and every salary level, which is why a two-minute calculation beats any rule of thumb. If the new regime wins for you, remember that tax-saver investments like ELSS should then be judged purely as investments — see how they compare in our mutual fund guides.
Frequently asked questions
Which regime is better for salaried employees?
It depends entirely on your deductions. If you claim substantial 80C, 80D, HRA or home-loan interest, the old regime often wins; with few deductions, the new regime's lower rates usually save more. Run your real numbers above.
Can I switch between regimes every year?
Salaried taxpayers without business income can generally choose afresh each year when filing. Those with business income face restrictions on switching back. Confirm current rules when you file.
Do ELSS investments still make sense under the new regime?
The new regime does not give the 80C deduction, but ELSS remains a diversified equity investment with the shortest lock-in among 80C options — judge it as an investment, not only as a tax break.
Are these slabs up to date?
The calculator uses FY 2025-26 slabs and is reviewed after each Union Budget. For filing decisions, cross-check the current year's rules or ask your advisor.
These calculators provide estimates for educational purposes only and are not personalized investment advice. Mutual fund investments are subject to market risks.