Old vs New Tax Regime Calculator India
Compare your income tax liability under India's Old Tax Regime and New Tax Regime for FY 2025-26 (AY 2026-27). Enter your income and deductions to instantly see which regime saves you more money, the breakeven deduction amount, and a full slab-wise breakdown with 4% health and education cess.
How the Old vs New Tax Regime Calculator Works
The Old vs New Tax Regime Calculator is a free, browser-based tool that compares your income tax under both Indian tax regimes for FY 2025-26 (AY 2026-27). It uses the latest slab rates announced in Union Budget 2025 to compute your exact tax liability, including Section 87A rebate and 4% health and education cess. Enter your gross annual income, Section 80C investments (PPF, ELSS, LIC), health insurance premiums under 80D, HRA exemption, and any other deductions. The calculator instantly shows tax under both regimes side by side, highlights which one saves more, and calculates the breakeven deduction amount where both regimes produce equal tax.
New Tax Regime Slabs for FY 2025-26
The New Tax Regime, which became the default from FY 2023-24, received revised slab rates in Budget 2025. For FY 2025-26, income up to 4 lakh is tax-free, followed by 5% on 4-8 lakh, 10% on 8-12 lakh, 15% on 12-16 lakh, 20% on 16-20 lakh, 25% on 20-24 lakh, and 30% above 24 lakh. A standard deduction of 75,000 rupees is available. The Section 87A rebate makes income up to 12 lakh rupees (taxable) effectively tax-free under this regime, meaning salaried individuals earning up to 12.75 lakh pay zero tax. The new regime does not allow deductions under 80C, 80D, HRA exemption, or most other sections, making it simpler but potentially costlier for those with high deductions.
Old Tax Regime Slabs and Deductions
The Old Tax Regime retains three main slab rates: nil up to 2.5 lakh, 5% on 2.5-5 lakh, 20% on 5-10 lakh, and 30% above 10 lakh. Its major advantage is the ability to claim deductions. Section 80C allows up to 1.5 lakh for investments in PPF, ELSS, LIC premiums, EPF contributions, and tuition fees. Section 80D covers health insurance premiums up to 25,000 (or 50,000 for senior citizens). HRA exemption can save significant tax for employees paying rent in metro cities. Other deductions include 80E for education loan interest, 80G for donations, 80TTA for savings account interest, and Section 24(b) for home loan interest up to 2 lakh. The standard deduction under the old regime is 50,000 rupees. Based on Income Tax Department guidelines for AY 2026-27, taxpayers with total deductions exceeding approximately 4-5 lakh may benefit more from the old regime.
When to Choose Old Regime Over New Regime
The decision depends on your total eligible deductions. If your combined deductions (80C + 80D + HRA + home loan interest + NPS + others) are substantial, the old regime may result in lower tax despite higher slab rates. For incomes between 10-15 lakh, a deduction threshold of roughly 3.75-4.5 lakh typically makes the old regime better. For higher incomes above 20 lakh, the breakeven deduction is higher because the new regime's lower rates on the first 24 lakh create a bigger gap. This calculator computes the exact breakeven amount for your specific income, removing all guesswork. Salaried employees can switch between regimes each financial year, so running this comparison annually before your employer's tax declaration deadline ensures you always pick the optimal option.