Old vs New Tax Regime Calculator
Choosing a tax regime is an annual decision with real money attached, and most people guess rather than compute. The new regime became the default from FY 2023-24 with wider slabs and almost no deductions; the old regime still rewards rent, home loans and investment. This tool takes one salary package and prices it under both, then says plainly which one is cheaper this year.
Applies to FY 2025-26Last updated 12 Oct 2026
Enter values
Results
- New regime is cheaper by
- ₹85,280.00
- Verdict
- Switch to the new regime and keep ₹85,280.00
- Tax under the old regime
- ₹2,40,240.00
- Tax under the new regime
- ₹1,54,960.00
How is the Old vs New Tax Regime calculated?
Enter annual salary, any other income such as bank interest, your 80C investments and a single total of everything else you claim in the old regime — 80D, NPS, home loan interest and HRA together. The calculator builds taxable income for each regime with its own standard deduction, runs both sets of FY 2025-26 slabs, applies the rebate and cess, and returns both bills plus the difference in rupees.
Formula
Old regime taxable income = salary + other income − ₹50,000 standard deduction − 80C (max ₹1,50,000) − other deductions. New regime taxable income = salary + other income − ₹75,000, with no 80C, 80D, HRA or 24(b). Each total is taxed at FY 2025-26 slabs, minus the 87A rebate, plus 4% cess.
Example
A ₹18,00,000 salary with ₹20,000 interest, ₹1,50,000 in 80C and ₹2,25,000 of other deductions gives ₹13,95,000 taxable in the old regime, which costs ₹2,40,240 after cess. The new regime taxes ₹17,45,000 and costs ₹1,54,960, so switching saves ₹85,280 in a single year — a gap of more than ₹7,100 every month.
Things to remember
Rerun this comparison every March, because a bonus, a new home loan or a bigger HRA claim can move the answer between regimes. The figures use FY 2025-26 rates — check the latest budget before filing — and the model ignores surcharge, so very high incomes should be verified separately.
Frequently Asked Questions
Which regime should I pick for FY 2025-26?
Compare both with your own numbers rather than a rule of thumb. The new regime wins for most people with modest deductions, while the old regime takes over once 80C, HRA and home loan interest together cut taxable income by several lakh.
Is the new regime the default one now?
Yes, under section 115BAC the new regime applies unless you choose otherwise. Salaried taxpayers can still elect the old regime in the return, but the choice has to be re-made each year and it changes what deductions you may claim.
Can I claim HRA and home loan interest in the new regime?
No. Both the section 10(13A) HRA exemption and section 24(b) interest deduction belong to the old regime, as do 80C and 80D. Employer contributions to NPS under 80CCD(2) remain available in the new regime, alongside a higher standard deduction.
Does the standard deduction change between regimes?
It does. The new regime gives ₹75,000 for FY 2025-26 while the old regime gives ₹50,000, a ₹25,000 advantage that is applied automatically in this comparison before any slabs are touched.
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