Old vs new regime — FY 2025-26
The new regime has wider slabs and lower rates but allows almost no deductions. The old regime has narrower slabs and higher rates but permits 80C, 80D, HRA exemption and home-loan interest. Which one taxes you less depends entirely on how much you can actually deduct.
For FY 2025-26 the new regime is taxed at nil up to ₹4,00,000, 5% to ₹8,00,000, 10% to ₹12,00,000, 15% to ₹16,00,000, 20% to ₹20,00,000, 25% to ₹24,00,000 and 30% above that. The standard deduction is ₹75,000, and the Section 87A rebate makes tax nil where taxable income is ₹12,00,000 or less, with marginal relief just above it.
The old regime is nil to ₹2,50,000, 5% to ₹5,00,000, 20% to ₹10,00,000 and 30% above, with a ₹50,000 standard deduction and an 87A rebate of up to ₹12,500 where taxable income is ₹5,00,000 or less.
The deduction break-even
Because the new regime gives a larger standard deduction and lower rates, the old regime only wins once your deductions are big enough to overcome that gap. The main levers are 80C (capped at ₹1,50,000), 80D health premiums (₹25,000 for self and family below 60), home-loan interest on a self-occupied property (capped at ₹2,00,000) and HRA exemption.
Rather than memorising a break-even figure, enter your actual deductions above — the calculator computes both regimes on your own numbers and reports the difference in rupees.
What this calculator does not model
Surcharge on income above ₹50,00,000 is not included, so very high incomes are understated in both regimes. Capital gains, business or professional income, more than one house property, and the senior-citizen (60+ and 80+) slabs are also outside scope.
The 4% Health and Education Cess is applied in both regimes after rebate and marginal relief. HRA exemption is taken as you enter it — use the HRA calculator to work out your eligible amount first.
Which tax regime is better, old or new, for FY 2025-26?+
It depends on your deductions. The new regime has lower rates and a ₹75,000 standard deduction but almost no deductions; the old regime allows 80C, 80D, HRA and home-loan interest but taxes at higher rates. Enter your actual figures above and the calculator computes both.
What are the new regime tax slabs for FY 2025-26?+
Nil up to ₹4,00,000; 5% to ₹8,00,000; 10% to ₹12,00,000; 15% to ₹16,00,000; 20% to ₹20,00,000; 25% to ₹24,00,000; and 30% above ₹24,00,000. A ₹75,000 standard deduction applies to salaried taxpayers.
Is income up to ₹12 lakh really tax-free under the new regime?+
Where taxable income is ₹12,00,000 or less, the Section 87A rebate reduces the tax to nil. Just above that threshold, marginal relief limits the tax so the extra tax cannot exceed the extra income. Taxable income is after the ₹75,000 standard deduction.
Can I claim HRA under the new tax regime?+
No. The HRA exemption under Section 10(13A) is available in the old regime only. This is one of the main reasons renters with significant HRA sometimes still find the old regime cheaper.
Can I switch between the old and new regime each year?+
Salaried taxpayers without business income can generally choose the regime each assessment year when filing. This calculator is educational and does not constitute tax advice — confirm your own position with a qualified tax professional.
Does this calculator include surcharge?+
No. Surcharge on income above ₹50,00,000 is not modelled, so results for very high incomes are understated in both regimes. Capital gains, business income and senior-citizen slabs are also out of scope.
Which regime is better for a ₹15 lakh salary?+
There is no single answer — it turns on how much you can actually deduct. At that income the new regime starts well ahead thanks to its ₹75,000 standard deduction and lower rates, so the old regime only overtakes once 80C, 80D, HRA and home-loan interest together are substantial. Enter your real figures above rather than relying on a rule of thumb.
Can I claim 80C deductions under the new tax regime?+
No. 80C, 80D, HRA exemption and home-loan interest on a self-occupied property are all unavailable in the new regime. The ₹75,000 standard deduction and the employer NPS contribution under 80CCD(2) are the main deductions that survive.
What is the standard deduction for FY 2025-26?+
₹75,000 for salaried taxpayers under the new regime and ₹50,000 under the old regime. It is applied automatically to salary income before the slabs, and the calculator already accounts for it in both columns.
What is marginal relief in the new regime?+
It stops a small rise in income from causing a disproportionate jump in tax just above the ₹12,00,000 rebate threshold. Without it, earning slightly more than the limit would cost more in tax than the extra income; marginal relief caps the additional tax at the additional income.