Old vs New Tax Regime Calculator
Enter your annual salary and old-regime deductions to instantly see which regime gives you the lower tax for FY 2025-26 (AY 2026-27). The Section 87A rebate, standard deduction and 4% cess are applied automatically.
Old-regime deductions (ignored under new regime)
₹2,57,400
Taxable: ₹14,50,000
₹97,500
Taxable: ₹14,25,000
New regime — ₹1,59,900
per year (FY 2025-26 estimate)
Frequently asked questions
Which tax regime is better for FY 2025-26?+
It depends on your deductions. The new regime (Section 115BAC) wins for most taxpayers because of its higher rebate (nil tax up to ₹12 lakh taxable income) and ₹75,000 standard deduction. The old regime usually wins only if your combined 80C + 80D + HRA + home-loan interest deductions exceed roughly ₹4-5 lakh. Use the calculator above to check your exact numbers.
Is income up to ₹12 lakh tax-free under the new regime?+
Yes. For FY 2025-26, the Section 87A rebate makes tax nil on taxable income up to ₹12,00,000 under the new regime. For salaried individuals, the ₹75,000 standard deduction pushes the effective tax-free salary to about ₹12.75 lakh.
Can I switch between old and new regime every year?+
Salaried individuals without business income can choose afresh each financial year while filing their return. Taxpayers with business or professional income can switch back to the old regime only once.
Does the new regime allow 80C or HRA deductions?+
No. Under Section 115BAC, most exemptions and deductions — including 80C, HRA, and Section 24(b) home-loan interest on self-occupied property — are not available. Only the standard deduction and employer NPS contribution under 80CCD(2) are allowed.