FY 2025-26 · AY 2026-27

Old regime vs New regime — which one saves you more?

Enter your salary and only the deductions you'll actually claim. See both regimes side by side and the exact winner in rupees.

Old regime wins
₹2,340
You save ₹2,340 every year by choosing the old regime.
New regime
₹97,500
Taxable income₹14,25,000
Standard deduction₹75,000
Old regime
₹95,160
Taxable income₹8,95,000
Standard deduction₹50,000
Take-home (new)
₹14,02,500
After tax and cess
Take-home (old)
₹14,04,840
After tax and cess
Effective rate
6.3%
At winning regime
Plain-English insights
  • The old regime saves you ₹2,340 this year.
  • Your old-regime deductions add up to ₹6,05,000. Below ~₹3L of deductions, the new regime usually wins.
  • Employer NPS (80CCD(2)) is deductible in both regimes and often skipped — worth asking HR about.
What this tool assumes

Standard deduction of ₹75,000 (new) and ₹50,000 (old) is applied automatically. Tax includes 4% health & education cess. Surcharge for income above ₹50L, capital-gains tax and other special-rate income are not modelled. Verify with your CA before filing.

Common questions
Old regime or new — how do I choose?

New regime is simpler and has lower slab rates but almost no deductions. Old regime works if you have 80C investments, an HRA claim, home loan interest, or health insurance premiums that add up to more than about ₹3.75 lakh in deductions.

Can I switch every year?

Salaried employees can switch each year. Business/professional income can switch once — after that, going back to the old regime is a one-way lock.

What's the new regime standard deduction?

₹75,000 for FY 2025-26 (up from ₹50,000). The old regime standard deduction is still ₹50,000.

Is HRA claimable in the new regime?

No. Neither is 80C, 80D, home loan interest on self-occupied property, or LTA. New regime accepts almost only the standard deduction and NPS employer contribution.

What if my income is under ₹12 lakh?

Under the new regime for FY 2025-26, section 87A rebate makes tax zero up to ₹12 lakh taxable income. Old regime still taxes you.

How this is calculated
Tax = Σ (slab_income × slab_rate) + 4% health & education cess

We take your gross salary, subtract the deductions you enter (standard deduction, 80C, 80D, HRA, home loan interest, NPS), apply the slab structure for FY 2025-26, add cess, and apply the 87A rebate where applicable.

Assumptions
  • You're a resident individual under 60.
  • No surcharge (income under ₹50 lakh).
  • Perquisites, LTA and other allowances are ignored unless you add them to salary yourself.
What it can't tell you
  • Business income, capital gains and rental income aren't modelled here.
  • State-specific professional tax isn't included.
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