Old vs New Tax Regime
FY 2025-26 (AY 2026-27) · Personalized comparison with your deductions
FY 2025-26 (AY 2026-27) · Personalized comparison with your deductions
Tax payable at common income levels under each regime, for salaried individuals below 60 with no additional deductions.
| Income | New Regime | Old Regime | Better |
|---|---|---|---|
| ₹7,50,000 | ₹0 | ₹49,400 | New (₹49,400) |
| ₹10,00,000 | ₹0 | ₹1,01,400 | New (₹1,01,400) |
| ₹12,00,000 | ₹0 | ₹1,56,000 | New (₹1,56,000) |
| ₹15,00,000 | ₹97,500 | ₹2,49,600 | New (₹1,52,100) |
| ₹20,00,000 | ₹1,92,400 | ₹4,05,600 | New (₹2,13,200) |
| ₹25,00,000 | ₹3,19,800 | ₹5,61,600 | New (₹2,41,800) |
| ₹30,00,000 | ₹4,75,800 | ₹7,17,600 | New (₹2,41,800) |
| ₹50,00,000 | ₹10,99,800 | ₹13,41,600 | New (₹2,41,800) |
The new regime has lower tax slab rates (5% to 30% across 7 slabs) but does not allow most deductions. The old regime has higher slab rates (5%, 20%, 30%) but allows deductions under 80C, 80D, HRA, home loan interest, etc. Both offer a standard deduction of ₹75,000.
If your total deductions (80C, 80D, HRA, home loan interest, NPS, etc.) exceed approximately ₹3.75 lakh, the old regime may be better. For most people with limited deductions, the new regime saves more due to lower slab rates and higher 87A rebate (up to ₹12 lakh).
Salaried individuals can switch between the old and new regime every financial year. Business/professional income earners can switch once from new to old, but once they go back to old, they cannot choose new again.
Section 80C (PPF, ELSS, LIC), 80D (health insurance), 80CCD(1B) (NPS), Section 24(b) (home loan interest), HRA exemption, and LTA are available only in the old regime. The new regime only offers standard deduction and employer NPS contribution under 80CCD(2).
Under the new regime, if taxable income is up to ₹12,00,000, you get a rebate of up to ₹60,000 (zero tax). Under the old regime, the rebate is up to ₹12,500 if taxable income is up to ₹5,00,000.
No. Section 80C deductions (PPF, ELSS, LIC premiums, EPF, NSC, tuition fees, etc.) are not available under the new tax regime. They can only be claimed in the old regime.