How much tax does health insurance save under Section 80D?
By Vijay Singh Sinhmar · Fintech automation specialist, 8 years in finance · Published 2026-10-12
In FY 2026-27, Section 80D lets you deduct health insurance premium only in the old regime: up to ₹25,000 for yourself and family below 60, or ₹50,000 from 60, plus up to ₹25,000 for parents, or ₹50,000 if they are 60 or older. On a ₹15,00,000 salary, a ₹25,000 premium cuts the old-regime tax from ₹2,57,400 to ₹2,49,600. The new regime gives no 80D deduction.
Educational information, not investment advice · Muktify is not SEBI-registered
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The limits
Self, spouse and children: up to ₹25,000 a year while you are below 60, and up to ₹50,000 from 60.
Parents: a separate limit of up to ₹25,000 a year, or up to ₹50,000 if they are 60 or older. This is on top of your own limit.
Premium above a limit is not deducted. On a ₹15,00,000 salary, a ₹40,000 premium for yourself saves the same as ₹25,000: the old-regime tax is ₹2,49,600 either way.
What it saves on a ₹15 lakh salary
With no deductions, the old-regime tax on ₹15,00,000 is ₹2,57,400. A ₹25,000 premium for yourself brings it to ₹2,49,600.
Add ₹25,000 for parents below 60 and it falls to ₹2,41,800. If the parents are 60 or older and their premium is ₹50,000, it falls to ₹2,34,000.
The new-regime tax on the same salary is ₹97,500 whatever premium you pay, because the new regime has no 80D deduction.
Lower salaries and senior citizens
On a ₹10,00,000 salary, a ₹25,000 premium lowers the old-regime tax from ₹1,06,600 to ₹1,01,400. The new-regime tax there is already nil.
A 65-year-old with ₹9,00,000 of pension can deduct up to ₹50,000 for their own cover. That lowers the old-regime tax from ₹83,200 to ₹72,800.
Whether the deduction makes the old regime lower overall depends on your other deductions too. Health cover is bought for protection first; the tax deduction is a side effect.
Educational, not investment advice. I’m not SEBI-registered.
Frequently asked questions
Can I claim 80D in the new tax regime?
No. In FY 2026-27 the new regime allows no deduction for health insurance premium. It is available only in the old regime.
What is the maximum 80D deduction?
Up to ₹50,000 for yourself and family when you are 60 or older, plus up to ₹50,000 for parents aged 60 or more: ₹1,00,000 in total. Below 60 with parents below 60, it is ₹25,000 plus ₹25,000.
Can I claim the premium I pay for my parents?
Yes, under its own limit of ₹25,000, or ₹50,000 if they are 60 or older. It does not use up your own ₹25,000.
Does a premium above the limit save more tax?
No. Only the premium up to the limit is deducted. A ₹40,000 premium for yourself below 60 is deducted as ₹25,000.
Related
- Old vs new tax regime — which is better for me? →
- How much life cover does my family need? →
- Income tax for senior citizens →
- Tax regime calculator →
Last updated 2026-10-12. Figures reflect FY 2026-27 and are educational estimates, not advice. Muktify is not SEBI-registered and never recommends or ranks any instrument.
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