New vs Old Tax Regime Calculator
Updated November 2026 · Free · No sign-up
Compare new vs old tax regime side by side for your salary — enter income and your actual deductions, see both tax bills and the exact break-even, so the April declaration stops being a guess.
Quick answer: Rule of thumb: total deductions (80C + HRA exemption + home-loan interest + 80D + NPS) below ~₹4-4.5 lakh favor the NEW regime; above it, the old regime usually wins. The new regime is default with a ₹75,000 standard deduction and zero tax up to ₹12 lakh (after rebate) under current slabs — verify each budget.
The Two Regimes in One Table (FY 2025-26 Structure)
| New regime (default) | Old regime | |
|---|---|---|
| Standard deduction | ₹75,000 | ₹50,000 |
| Slabs | 0-4L nil; 4-8L 5%; 8-12L 10%; 12-16L 15%; 16-20L 20%; 20-24L 25%; 24L+ 30% | 0-2.5L nil; 2.5-5L 5%; 5-10L 20%; 10L+ 30% |
| Rebate | 87A makes tax zero up to ₹12L income | 87A up to ₹5L |
| Deductions allowed | Almost none (employer NPS 80CCD(2) survives) | 80C, HRA, 24(b), 80D, 80CCD(1B), LTA... |
Slabs change with budgets — this tool reflects the structure current at last update; always verify the year's Finance Act.
Worked Examples
Example 1 — light deducter, ₹15L. Only 80C ₹1.5L: new regime tax ≈ ₹97,500+cess vs old ≈ ₹1,95,000+cess. New wins by ~₹1L — typical for renters-without-HRA-structure and non-borrowers.
Example 2 — heavy deducter, ₹15L. 80C 1.5L + HRA exemption 2.4L + home-loan 2L + 80D 25k + NPS 50k = ₹6.65L deductions: old-regime taxable ₹7.85L → tax ≈ ₹69,500. Old wins by ~₹28,000.
Example 3 — the ₹12L zero line. At ₹12,00,000 gross, the new regime's rebate zone means zero tax — no deduction stack can beat zero; below ~₹12.75L gross (with standard deduction) the new regime is nearly unbeatable.
Getting Your Inputs Right
- HRA exemption is the least-of-three figure, not your HRA received — compute it in the HRA exemption calculator first; it is usually the swing vote for metro renters.
- 80C fills itself for most: employee PF alone is often ₹50-60k — count it before buying tax products you don't need.
- Employer NPS (80CCD(2)) is deductible in BOTH regimes — it never tips the comparison, so exclude it here.
- Switching rules: salaried can pick per year (declare to payroll; final choice at ITR). Business income locks choices — different rules.
Strategy by Profile
Young renter, no loans: new regime + invest what you'd have locked in tax products — flexibility beats a forced ELSS. Metro renter with high rent + maxed 80C: run this tool — you're the genuine borderline case. Home-loan + family insurance + NPS stacker: old regime probably still wins; re-check after every budget since new-regime slabs keep sweetening. Declare your pick to payroll in April; a wrong declaration just means a refund/true-up at filing, not a lost choice.
Frequently Asked Questions
Which tax regime is better for salaried employees?
Deductions below ~₹4-4.5L total → new regime; above → old usually wins. Up to ₹12L income the new regime's rebate makes tax zero, which deductions cannot beat.
Can I switch between regimes every year?
Salaried taxpayers: yes — declare to payroll each April and finalize at ITR. Business-income taxpayers face one-time switch restrictions.
What deductions survive in the new regime?
The ₹75,000 standard deduction and employer NPS contributions under 80CCD(2) — HRA, 80C, home-loan interest, and 80D do not.
Is tax really zero up to ₹12 lakh?
Under the current new-regime rebate, yes for income up to ₹12L (₹12.75L gross with standard deduction) — crossing the line triggers marginal-relief taper, not a cliff. Verify current-year rules.
What if I declared the wrong regime to payroll?
The ITR choice is what finally counts — payroll declaration only sets monthly TDS; differences settle as refund or payable at filing.
Does HRA make the old regime worth it?
Often — a metro renter with ₹20k+ rent can unlock ₹1.5-2.5L of exemption, the single biggest old-regime lever. Compute it precisely before deciding.
✓ Formula verified • Last updated: November 3, 2026