Old vs New Tax Regime Calculator
Enter your income and the deductions you can claim. The calculator works out tax under both regimes for FY 2025-26 (AY 2026-27) and tells you which one costs less.
Results
Better option
New regime is cheaper
- You save
- ₹89,700
- Tax under the new regime
- ₹97,500
- Tax under the old regime
- ₹1,87,200
- Taxable income (new)
- ₹14,25,000
- Taxable income (old)
- ₹12,25,000
- Old-regime deductions needed to match the new regime
- ₹5,93,750
New regime is cheaper: ₹97,500 under the new regime against ₹1,87,200 under the old regime, a difference of ₹89,700 (FY 2025-26 (AY 2026-27)).
Tax under each regime
- New regime₹97,500 (34.2%)
- Old regime₹1,87,200 (65.8%)
Show the calculation steps
- New regime: income ₹15,00,000 − standard deduction and employer NPS = taxable ₹14,25,000 → tax ₹97,500 including rebate and cess.
- Old regime: income ₹15,00,000 − deductions ₹2,75,000 = taxable ₹12,25,000 → tax ₹1,87,200 including rebate and cess.
- The old regime would match the new one if your total old-regime deductions (including the standard deduction) were about ₹5,93,750. You have ₹2,75,000.
- Uses FY 2025-26 (AY 2026-27) rates for resident individuals. Slabs and limits change with each Budget.
How the comparison works
The new regime uses lower rates with only the standard deduction and employer NPS. The old regime uses higher rates but allows all the deductions you enter. Both include the Section 87A rebate, surcharge and cess.
The break-even point
The result also shows how much in total old-regime deductions (including the standard deduction) you would need for the old regime to cost the same as the new one. If your deductions are below that figure, the new regime is cheaper.
Formula
Taxable income = income − deductions allowed under the regime
Tax = sum of (income in each slab × slab rate)
Total tax = (tax − rebate + surcharge) × (1 + 4% cess)
Where:
- Slab
- = An income band taxed at one rate
- Rebate (87A)
- = A reduction for taxable income up to a limit
- Surcharge
- = An extra percentage on tax for very high incomes
- Cess
- = Health and education cess of 4%
Example calculation
₹15,00,000 salary with ₹2.75 lakh of old-regime deductions, FY 2025-26 (AY 2026-27)
Inputs
- Age (Old Regime Slabs)
- Below 60
- Salary Income (Gross)
- ₹15,00,000
- Other Income
- ₹0
- Employer NPS Contribution
- ₹0
- HRA Exemption
- ₹0
- Section 80C Investments
- ₹1,50,000
- Section 80D (Health Insurance)
- ₹25,000
- Home Loan Interest
- ₹0
- Other Deductions
- ₹50,000
Result
- Better option
- New regime is cheaper
- You save
- ₹89,700
- Tax under the new regime
- ₹97,500
- Tax under the old regime
- ₹1,87,200
- Taxable income (new)
- ₹14,25,000
- Taxable income (old)
- ₹12,25,000
- Old-regime deductions needed to match the new regime
- ₹5,93,750
Step-by-step
- New regime: income ₹15,00,000 − standard deduction and employer NPS = taxable ₹14,25,000 → tax ₹97,500 including rebate and cess.
- Old regime: income ₹15,00,000 − deductions ₹2,75,000 = taxable ₹12,25,000 → tax ₹1,87,200 including rebate and cess.
- The old regime would match the new one if your total old-regime deductions (including the standard deduction) were about ₹5,93,750. You have ₹2,75,000.
Important notes
- Rates and limits shown are for FY 2025-26 (AY 2026-27) and apply to resident individuals. They change with each Union Budget: check the current year before you file.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
How do I know which regime to choose?
Compare the tax under both with your real deductions. This calculator does that in one step.
Can I switch regimes every year?
Salaried individuals can generally choose each year, but the rules differ for people with business income. Check the current rules.
Why does the new regime often win?
Its lower slab rates and the higher rebate limit mean many taxpayers with modest deductions pay less under it.
Related calculators
- Income Tax CalculatorCalculate income tax under the new or old regime for FY 2025-26 (AY 2026-27): slabs, rebate, surcharge, cess and monthly tax.
- Section 80C Tax CalculatorSee how much Section 80C deduction you can claim and the tax you save, up to the ₹1,50,000 limit.
- Section 80D Tax CalculatorWork out your Section 80D deduction for health insurance premiums for yourself, family and parents, and the tax you save.
- GST CalculatorAdd GST to a price or remove it, and see the GST amount with the CGST, SGST and IGST split.
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