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Old vs New Tax Regime Calculator (FY 2025-26)

Compare both tax regimes side-by-side to find out which one saves you more money on your salary.

Your Income & Savings

Enter your salary and intended deductions to see which regime saves you more tax.

₹
₹12 Lakh
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₹0
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₹1.5 Lakh

Standard Deduction of ₹75,000 applies to the New Regime (₹50,000 for Old Regime). The New Tax Regime does not allow most deductions (like 80C) or exemptions (like HRA). Under FY 2025-26 rules, income up to ₹12 Lakh is tax-free in the New Regime due to rebate 87A.

Recommendation
Choose the New Regime
You save ₹1,17,000 in taxes!

New Regime

Winner
Gross Income₹12,00,000
Standard Deduction-₹75,000
Deductions/ExemptionsNot Allowed
Net Taxable Income₹11,25,000
Total Tax Payable₹0Tax Free! (Rebate 87A)

Old Regime

Gross Income₹12,00,000
Standard Deduction-₹50,000
Exemptions & Deductions-₹1,50,000
Net Taxable Income₹10,00,000
Total Tax Payable₹1,17,000

How to Choose the Right Tax Regime

1

Understand the New Regime

The New Regime offers lower tax rates but you must give up almost all exemptions (like HRA) and deductions (like 80C). The standard deduction is ₹75,000 for the New Regime and ₹50,000 for the Old Regime.

2

The 7 Lakh Rebate

In the New Regime, if your taxable income is ₹7,000,000 or less, you get a full rebate under Section 87A, meaning you pay zero tax.

3

When to choose Old Regime

If you have high deductions (₹1.5L in 80C, ₹50k in NPS, high HRA rent receipts, and a Home Loan), the Old Regime is usually better. Otherwise, the New Regime wins.

Strategy: The Breakeven Threshold

Choosing between the Old and New Tax Regimes depends on your salary and eligible deductions. The Breakeven Threshold is the exact amount of deductions you need to claim for the Old Regime to be more beneficial.

  • Up to ₹7,00,000 Salary: The New Regime is always better because you pay zero tax due to the Section 87A rebate.
  • ₹10,00,000 Salary: You need roughly ₹2,62,500 in total deductions (like 80C, HRA, Health Insurance) to make the Old Regime worthwhile.
  • ₹15,00,000+ Salary: The breakeven threshold rises to ₹3,75,000. If your actual deductions exceed this number, choose the Old Regime. Otherwise, stick with the New Regime.