Old vs New Regime Calculator — Compare FY 2025-26 Tax

Updated: 8 May 2026 Reviewed by CA Sundram Gupta · Founder, Patron Accounting LLP

Old vs New Regime Calculator — Side-by-Side Comparison FY 2025-26

TL;DR

Compare both tax regimes side-by-side for FY 2025-26 (AY 2026-27). The new regime has lower slabs (0/5/10/15/20/25/30%), ₹75K standard deduction, ₹60K Section 87A rebate up to ₹12L taxable income — making salary up to ₹12.75L effectively tax-free. The old regime retains 80C, 80D, HRA, home loan deductions but with higher slabs (5/20/30%). Break-even point: roughly ₹3.75 lakh in total deductions. Below that, new regime wins; above that, old regime may win — especially with home loan + rent.

Old vs New Regime Calculator

Enter your income and old-regime deductions. The calculator computes tax under both regimes and recommends the one that saves more for your specific situation.

Step 1 — Income Details

Gross Salary (₹) — annual Annual gross salary including basic, HRA, allowances, perks (before any deductions)

Other Income (₹) — annual Interest from FD, savings, dividends, rental income (NOT capital gains — those are taxed separately at special rates)

Age Group

Affects old regime exemption limit only (₹2.5L / ₹3L / ₹5L). New regime is age-uniform.

Income Type

Step 2 — Old Regime Deductions (Optional)

Section 80C (₹) PPF, EPF, ELSS, LIC, NSC. Max ₹1.5L

Section 80D (₹) Health insurance premium

Section 80CCD(1B) NPS (₹) Self-NPS contribution. Max ₹50K above 80C

HRA Exemption (₹) Computed HRA exempt amount under Section 10(13A)

Home Loan Interest (₹) Section 24(b) for self-occupied. Max ₹2L

Other (80E, 80G, 80TTA, etc.) (₹) Education loan, donations, savings interest, etc.

Old Regime

Total Tax —

New Regime

Total Tax —

📊 Break-Even Insight

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Slab Rate Comparison FY 2025-26

Both regimes apply to FY 2025-26 (AY 2026-27) under the Income Tax Act 1961, administered by the Income Tax Department per ICAI standards. The new regime is the default under Section 115BAC, established by the Ministry of Finance via Finance Act 2020 and substantially revised by Finance Act 2025. PIB notifications confirm slab rates for both regimes are unchanged for FY 2026-27.

New Regime Slabs

Income Slab	Tax Rate
Up to ₹4,00,000	Nil
₹4,00,001 to ₹8,00,000	5%
₹8,00,001 to ₹12,00,000	10%
₹12,00,001 to ₹16,00,000	15%
₹16,00,001 to ₹20,00,000	20%
₹20,00,001 to ₹24,00,000	25%
Above ₹24,00,000	30%

Old Regime Slabs

Income Slab	Below 60	Senior (60-80)	Super Senior (80+)
Basic Exemption	Up to ₹2.5L	Up to ₹3L	Up to ₹5L
5% Slab	₹2.5L - ₹5L	₹3L - ₹5L	—
20% Slab	₹5L - ₹10L	₹5L - ₹10L	₹5L - ₹10L
30% Slab	Above ₹10L	Above ₹10L	Above ₹10L

Both regimes apply 4% Health and Education Cess on the tax amount. Surcharge applies above ₹50L taxable income — capped at 25% under new regime, up to 37% under old regime.

Allowed Deductions — What Differs

Old Regime — Allows Almost Everything

Standard Deduction: ₹50,000 for salaried/pensioners
Section 80C: Up to ₹1,50,000 (PPF, EPF, ELSS, LIC, home loan principal, NSC, etc.)
Section 80CCD(1B): Additional ₹50,000 NPS over 80C
Section 80D: Up to ₹25,000 (₹50,000 for senior citizens) for health insurance
HRA Exemption (Section 10(13A)): Computed as least of three formulas
Section 24(b): Home loan interest up to ₹2 lakh for self-occupied property
Section 80E: Education loan interest (no cap)
Section 80G: Donations (50%/100% depending on entity)
Section 80TTA/TTB: Savings interest (₹10K / ₹50K for seniors)
LTA, professional tax, entertainment allowance for govt employees

New Regime — Severely Restricted

Standard Deduction: ₹75,000 for salaried/pensioners — higher than old regime
Section 80CCD(2): Employer NPS contribution up to 14% of salary (govt) / 10% (private)
Family Pension Deduction: ₹25,000 or 1/3 of pension, whichever is lower
Transport Allowance: For specially-abled employees only
Conveyance Allowance: For tour-related travel
Home loan interest: Allowed only for let-out property — NOT for self-occupied
Section 24(b) ₹2L cap: NOT available in new regime for self-occupied home

The new regime explicitly prohibits HRA exemption, Section 80C/80D/80E/80G, LTA, and Section 24(b) interest on self-occupied property.

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Break-Even Logic — When Does Old Regime Win?

The decision boils down to one question: do your deductions exceed the new regime's slab advantage? At each income level, there's a specific deduction threshold above which old regime saves more tax.

The simple test
If (Old Regime Deductions) > ~₹3,75,000
AND total income is moderate-to-high
THEN old regime usually saves more
ELSE new regime is the better choice

Common Profiles

Profile	Income	Typical Deductions	Better Regime
Junior software engineer, no investments	₹8 - ₹12L	~₹50K (PF only)	New
Mid-career, EPF + insurance	₹12 - ₹18L	~₹2L (80C + 80D)	New (most cases)
Mid-career with rent (Bangalore/Mumbai)	₹18 - ₹25L	~₹4L (80C + 80D + HRA)	Borderline
Home loan + rent + 80C maxed	₹15 - ₹30L	~₹5-6L	Old
Senior with FD interest, medical premium	₹6 - ₹12L	₹1.5-2L (80C + 80D + 80TTB)	New (87A rebate up to ₹12L)
Ultra-HNI (₹5cr+ income)	₹5cr+	Variable	New (25% surcharge cap)

Why ₹3.75 lakh? The new regime's tax-saving advantage at ₹15L income is roughly ₹1.5 lakh more than old regime (post-rebate, post-standard-deduction). To match this saving, the old regime needs deductions worth ~₹3.75L (which would save ~₹1.16L at 30% slab + lose access to lower slabs). The exact break-even varies with income — use the calculator above for your specific case.

HRA is the swing factor. Tier-1 city renters paying ₹25-50K/month often have HRA exemption of ₹2-4L, which alone shifts the calculation toward old regime. Conversely, employees living in employer accommodation or owning their home (no HRA) usually land in the new regime camp.

Worked Examples

Example 1 — ₹12L Salary, No Deductions

Salaried, age 30, salary ₹12L, no investments or HRA.

New regime: Salary ₹12L − ₹75K std ded = ₹11.25L taxable. Slab tax ₹52,500. Section 87A rebate caps it at zero. Tax = ₹0.
Old regime: Salary ₹12L − ₹50K std ded = ₹11.5L taxable. Slab tax (₹2.5L Nil + ₹2.5L × 5% + ₹5L × 20% + ₹1.5L × 30%) = ₹1,57,500. Cess 4% = ₹6,300. Tax = ₹1,63,800.
Saving with new regime: ₹1,63,800.

Example 2 — ₹20L Salary with Maxed Deductions

Salaried, age 35, salary ₹20L. Old-regime deductions: 80C ₹1.5L + 80D ₹50K + 80CCD(1B) ₹50K + HRA ₹3L + home loan interest ₹2L = total ₹7.5L.

New regime: ₹20L − ₹75K std ded = ₹19.25L taxable. Slab tax = ₹1,85,000. Cess 4% = ₹7,400. Tax = ₹1,92,400.
Old regime: ₹20L − ₹50K std ded − ₹7.5L deductions = ₹12L taxable. Slab tax = ₹1,72,500. Cess 4% = ₹6,900. Tax = ₹1,79,400.
Saving with old regime: ₹13,000.

Example 3 — ₹8L Salary, Low Deductions

Salaried, age 28, salary ₹8L. Only EPF ₹50K under 80C.

New regime: ₹8L − ₹75K std ded = ₹7.25L taxable. Slab tax = ₹16,250. 87A rebate (income ≤ ₹12L) wipes out tax. Tax = ₹0.
Old regime: ₹8L − ₹50K std ded − ₹50K 80C = ₹7L taxable. Slab tax = ₹52,500. 87A doesn't apply (income > ₹5L). Cess 4% = ₹2,100. Tax = ₹54,600.
Saving with new regime: ₹54,600.

The ₹12L sweet spot. Income up to ₹12.75 lakh (with the ₹75K standard deduction) is effectively tax-free under the new regime. For most salaried professionals in this bracket, the new regime is a clear win unless they have a home loan or pay rent in a high-cost city.

Frequently Asked Questions

It depends on your deductions. The new regime has lower slab rates and a ₹60,000 Section 87A rebate making income up to ₹12 lakh effectively tax-free. The old regime allows HRA, 80C up to ₹1.5L, 80D, home loan interest, and other deductions but with higher slab rates. The break-even point is approximately ₹3.75 lakh in total deductions. Below that, new regime usually saves more. Above that, old regime may still win — particularly if you have a large home loan.

New regime slabs for FY 2025-26 (AY 2026-27) under Section 115BAC: 0 to ₹4 lakh — Nil; ₹4 to ₹8 lakh — 5%; ₹8 to ₹12 lakh — 10%; ₹12 to ₹16 lakh — 15%; ₹16 to ₹20 lakh — 20%; ₹20 to ₹24 lakh — 25%; above ₹24 lakh — 30%. Slabs apply uniformly to all individuals regardless of age. Standard deduction ₹75,000 for salaried, plus 4% cess. Surcharge above ₹50L is capped at 25%.

Old regime slabs are unchanged for FY 2025-26. For individuals below 60: 0 to ₹2.5L — Nil; ₹2.5 to ₹5L — 5%; ₹5 to ₹10L — 20%; above ₹10L — 30%. Senior citizens (60-80): basic exemption up to ₹3 lakh. Super senior citizens (80+): up to ₹5 lakh. Standard deduction ₹50,000 for salaried, ₹50,000 for pensioners. All Chapter VI-A deductions (80C, 80D, 80E, 80G, etc.), HRA exemption, and home loan interest available. Surcharge up to 37% above ₹5 crore income.

Yes. The new regime is the default tax regime from FY 2024-25 under Section 115BAC of the Income Tax Act 1961. If you do not actively opt for the old regime, your employer will deduct TDS under the new regime. Salaried individuals can switch between regimes annually at the time of ITR filing. Business and professional income earners must exercise the option carefully using Form 10IEA — once opted in or out, switching back has restrictions.

The new regime allows only a limited set of deductions: standard deduction of ₹75,000 for salaried employees and pensioners, employer NPS contribution under Section 80CCD(2) up to 14% of salary for government and 10% private, transport allowance for specially-abled, conveyance allowance for tour-related travel, and family pension deduction up to ₹25,000. HRA, LTA, Section 80C, 80D, 80E, home loan interest under Section 24(b), and most other deductions are NOT available.

Section 87A rebate amounts differ significantly. In the new regime for FY 2025-26: up to ₹60,000 rebate if total taxable income does not exceed ₹12,00,000. Marginal relief applies between ₹12L and ~₹12.7L of taxable income. In the old regime: up to ₹12,500 rebate if total taxable income does not exceed ₹5,00,000. Both rebates apply only to resident individuals. Capital gains taxed at special rates under Sections 111A and 112A do not qualify for the rebate.

The break-even deduction threshold is approximately ₹3.75 lakh for most income levels. Below this, the new regime almost always saves more tax due to its lower slabs and higher rebate. Above ₹3.75L in total deductions (sum of 80C, 80D, HRA exemption, home loan interest, NPS, LTA), the old regime starts saving more. For income above ₹15L with a home loan plus rent paid, the old regime often remains attractive. Use the calculator above for your specific case.

Surcharge rates apply on tax (before cess) for high-income taxpayers. New regime: 10% above ₹50L, 15% above ₹1cr, 25% above ₹2cr (no further bracket — capped at 25%). Old regime: 10% above ₹50L, 15% above ₹1cr, 25% above ₹2cr, 37% above ₹5cr. The new regime is more attractive for ultra-high-net-worth individuals due to the 25% cap. Marginal relief applies at each surcharge boundary to ensure the increased tax does not exceed the additional income.

For salaried individuals without business income, yes — you can switch annually at ITR filing. Inform your employer at the start of the financial year for accurate TDS, but change at filing if better. For taxpayers with business or professional income, switching has restrictions under Section 115BAC(6) — once you opt out of the new regime, you can re-enter only once in your lifetime, and Form 10IEA must be filed. Plan carefully if you have business income.

It depends. The new regime does not provide higher basic exemptions for seniors — uniform ₹4L threshold for all. However, the higher standard deduction and ₹60K Section 87A rebate often make it competitive. Old regime gives ₹3L exemption for 60-80 age group and ₹5L for 80+, plus 80TTB ₹50K interest deduction. For seniors with high medical premiums and FD interest, old regime can win. Run both calculations.

No. Budget 2026 (presented February 2026) made no changes to slab rates, Section 87A rebate amounts, surcharge rates, or cess. Both the old and new regime slabs continue unchanged for FY 2026-27. The new Income Tax Act 2025 effective 1 April 2026 retains the substantive tax structure with renumbered references — Section 115BAC moves to Section 202, but rates and thresholds remain the same. Your regime decision logic for FY 2025-26 applies equally to FY 2026-27.

Only for let-out (rented) property. Under the new regime, home loan interest under Section 24(b) is fully deductible against rental income from let-out property — no cap. However, for self-occupied property, Section 24(b) deduction up to ₹2 lakh is NOT available in the new regime. The old regime allows up to ₹2 lakh for self-occupied property and unlimited for let-out (with ₹2L house property loss set-off cap). Home loan borrowers with self-occupied property usually prefer old regime.

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