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Old vs New Tax Regime Calculator

Compare old and new regime income tax for FY 2025-26 with 87A rebates and 4% cess to find which regime saves you more.

Results update instantly.Change any value and the estimate recalculates on the spot.

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Old vs New Tax Regime

Compare old vs new regime income tax for FY 2025-26, including 87A rebates and 4% cess, and see which regime saves you more.

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Better regime

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  • Old regime tax-
  • New regime tax-

FY 2025-26 slabs with 87A rebates (nil tax up to ₹5L old / ₹12L new taxable income) plus 4% cess. Surcharge on very high incomes is not included. Estimate only, not tax advice.

How to use

1. Enter your gross annual income. 2. Enter your 80C, 80D, and HRA figures (old regime only). 3. Compare both taxes and pick the cheaper regime.

Worked example

₹15L income with ₹1.5L 80C and ₹25k 80D: old regime tax is ₹2,02,800, new regime tax is ₹97,500. The new regime wins and saves ₹1,05,300.

How the math works

Old regime: taxable = gross - 80C - 80D - HRA - ₹50k standard deduction; slabs of 5%/20%/30% above ₹2.5L with nil tax up to ₹5L under 87A. New regime: taxable = gross - ₹75k standard deduction; slabs of 5% to 30% above ₹4L with nil tax up to ₹12L under 87A. Both add 4% health and education cess.

Which regime is better for FY 2025-26?
It depends on your deductions. With few deductions the new regime usually wins because of the ₹12 lakh rebate; with large 80C, 80D, and HRA claims the old regime can win. Run your numbers above.
What is the 87A rebate?
A rebate that wipes out your tax if taxable income is within the limit: ₹5 lakh under the old regime, ₹12 lakh under the new regime for FY 2025-26.
Can I switch regimes every year?
Salaried individuals can choose either regime each financial year. Business income taxpayers face restrictions once they opt out of the new regime.
Does the new regime allow 80C?
No. The new regime drops most deductions including 80C, 80D, and HRA, in exchange for lower slab rates and a higher rebate.

How it works

How the Old vs New Tax Regime Calculator works

Quick answer: For ₹15 lakh income with ₹1.5 lakh 80C and ₹25,000 80D deductions, the comparison is: New regime wins, save ₹1,05,300. Old regime tax ₹2,02,800, new regime tax ₹97,500.

Formula

Old regime taxable = income − 80C − 80D − HRA − ₹50,000 standard deduction
New regime taxable = income − ₹75,000 standard deduction
Tax = slab tax × 1.04 (4% cess), zero if within the 87A rebate limit

New regime slabs for FY 2025-26: 0 to ₹4L nil, then 5% steps to 30% above ₹24L, with no tax up to ₹12L taxable income.

Worked example

₹15,00,000 income: old regime ₹2,02,800, new regime ₹97,500. New regime wins, save ₹1,05,300.

With ₹1.5L 80C and ₹25,000 80D

Gross incomeOld regimeNew regimeOpen
₹8 lakh₹28,600₹0Open
₹12 lakh₹1,11,800₹0Open
₹15 lakh₹2,02,800₹97,500Open
₹20 lakh₹3,58,800₹1,92,400Open
₹30 lakh₹6,70,800₹4,75,800Open

Assumptions and limits

  • Surcharge for very high incomes and marginal relief are not modeled.

Frequently asked questions

Which regime is better for FY 2025-26?

It depends on your deductions. With few deductions the new regime usually wins because of the ₹12 lakh rebate; with large 80C, 80D, and HRA claims the old regime can win. Run your numbers above.

What is the 87A rebate?

A rebate that wipes out your tax if taxable income is within the limit: ₹5 lakh under the old regime, ₹12 lakh under the new regime for FY 2025-26.

Can I switch regimes every year?

Salaried individuals can choose either regime each financial year. Business income taxpayers face restrictions once they opt out of the new regime.

Does the new regime allow 80C?

No. The new regime drops most deductions including 80C, 80D, and HRA, in exchange for lower slab rates and a higher rebate.