Income Tax Calculator: Old vs New Regime
Find out which regime gives you the lower tax for FY 2025-26 and FY 2026-27. The slabs are the same for both years.
Which regime saves you more tax?
Put in your income and deductions. The calculator shows the tax under both regimes side by side and tells you how many deductions you would need for the old regime to win.
Your result
| Step | Old regime | New regime |
|---|
This is an estimate for a resident individual. It covers income taxed at normal slab rates. It does not include capital gains at special rates, agricultural income or AMT. Rates used: new regime slabs of 4/8/12/16/20/24 lakh, standard deduction of 75,000 (new) and 50,000 (old), rebate under section 87A of 60,000 up to 12 lakh (new) and 12,500 up to 5 lakh (old), surcharge and 4% cess. Please confirm with a Chartered Accountant before filing.
Deductions you can claim in the new regime
- Standard deduction of 75,000 for salaried people and pensioners
- Employer contribution to NPS, up to 14% of basic + DA
- Deduction of 25,000 from family pension (up to 25,000)
- Contribution to Agniveer Corpus Fund
- Certain business deductions, such as additional employee cost
- Exempt retirement benefits such as gratuity and leave encashment within limits
- 80C investments (PPF, ELSS, LIC, EPF)
- 80D health insurance premium
- HRA exemption and leave travel allowance
- Home loan interest on a self-occupied house
- 80E education loan interest
- 80TTA and 80TTB interest deductions
Tax planning: deductions in the old regime
| Deduction | Limit | What qualifies |
|---|---|---|
| 80C | 1,50,000 | PPF, EPF, ELSS, life insurance, tuition fees, home loan principal |
| 80CCD(1B) | 50,000 | Your own contribution to NPS, over and above 80C |
| 80D | 25,000 / 50,000 each for self and parents | Health insurance premium, higher limit for senior citizens |
| 24(b) | 2,00,000 | Interest on a self-occupied home loan |
| 80E | No limit | Interest on education loan, for up to 8 years |
| 80TTA / 80TTB | 10,000 / 50,000 | Savings interest (80TTB is for senior citizens) |
| HRA | Formula | The lowest of HRA received, rent paid minus 10% of basic, and 50% or 40% of basic |
As a thumb rule, the old regime tends to win only when your total deductions are large. The break-even figure above shows exactly how large for your income.
Not sure which to choose?
Salaried people can switch regime every year. Business owners can switch back to the old regime only once. Send us your salary slip or Form 16 and we will work out the better option and file your return.
