Use the Tax Regime Calculator to compare both regimes with your actual numbers. See the full FY 2025-26 tax slab table. After choosing a regime, calculate your exact in-hand salary.
From FY 2023-24, the New Tax Regime became the default regime. If you do not explicitly choose the Old Regime while filing your ITR or informing your employer, you are automatically taxed under the New Regime. Here's how to decide which one actually saves you more money.
Side-by-Side Comparison
| Feature | New Regime | Old Regime |
|---|---|---|
| Default from FY 2023-24? | ✅ Yes | ❌ Must opt-in |
| Standard Deduction | ₹75,000 | ₹50,000 |
| Tax-free limit (after rebate) | ₹12,00,000 | ₹5,00,000 |
| 80C deduction (₹1.5L) | ❌ Not allowed | ✅ Allowed |
| HRA Exemption | ❌ Not allowed | ✅ Allowed |
| Home Loan Interest (Sec 24b) | ❌ Not allowed | ✅ Up to ₹2L |
| 80D — Health Insurance | ❌ Not allowed | ✅ Up to ₹25,000 |
| NPS employer contribution (80CCD2) | ✅ Allowed | ✅ Allowed |
| Slab rates | Lower | Higher |
| Complexity | Simple | Requires investment proof |
Who Benefits from the New Regime?
- Employees with income below ₹12.75 lakh (salaried) — pay zero tax
- Young professionals with no home loan, low rent, and minimal investments
- People who find tax-saving investments tedious or don't want to lock money in 80C instruments
- Those with total deductions below ₹3.75 lakh
Who Benefits from the Old Regime?
- Employees paying high rent in metro cities with significant HRA exemption
- Home loan borrowers claiming Section 24(b) interest deduction (up to ₹2 lakh)
- People with maximum 80C investments (₹1.5 lakh in PPF, ELSS, etc.)
- Those with senior citizen parents whose medical insurance they pay (80D)
- High earners above ₹15-20 LPA with multiple deductions totalling ₹4+ lakh
Tax Comparison by Salary — Real Numbers
| Annual Income | New Regime Tax | Old Regime (0 deductions) | Old Regime (₹3.75L deductions) |
|---|---|---|---|
| ₹8,00,000 | ₹20,800 | ₹54,600 | ₹20,800 |
| ₹10,00,000 | ₹41,600 | ₹1,09,200 | ₹54,600 |
| ₹12,00,000 | ₹0 | ₹1,49,500 | ₹62,400 |
| ₹15,00,000 | ₹1,30,000 | ₹2,10,600 | ₹1,30,000 |
| ₹20,00,000 | ₹2,96,400 | ₹3,63,000 | ₹2,82,100 |
| ₹30,00,000 | ₹6,24,000 | ₹7,02,000 | ₹5,46,000 |
*All figures include 4% cess. Old Regime deductions example: ₹75K standard deduction + ₹1.5L 80C + ₹1L HRA + ₹50K 80D = ₹3.75 lakh.
Get your exact tax for both regimes
Personalised comparison based on your actual income and deductions
Common Deductions That Make Old Regime Win
| Deduction | Section | Max Amount | Typical Saver |
|---|---|---|---|
| EPF + PPF + ELSS + LIC | 80C | ₹1,50,000 | Most employees |
| HRA Exemption | 10(13A) | Varies | Metro renters |
| Home Loan Interest | 24(b) | ₹2,00,000 | Home owners |
| Health Insurance Premium | 80D | ₹25,000 (self) + ₹50,000 (parents) | Family coverage holders |
| NPS additional contribution | 80CCD(1B) | ₹50,000 | NPS investors |
| Education Loan Interest | 80E | No limit (8 yrs) | Recent graduates |
Can I Switch Regimes Every Year?
Salaried employees: Yes, you can switch between Old and New regime every year at the time of filing your ITR. You can also inform your employer which regime to use for TDS deduction — but this can be changed when filing your actual return.
Business income earners: You can switch from New to Old once, but cannot go back. Choose carefully if you have business income.