Old vs New Tax Regime
A side-by-side comparison to help you choose the better tax regime.
Gross salary for the year before any deduction.
Senior citizens get a higher tax-free limit in the old regime only.
PPF, ELSS, EPF, life insurance and so on. Capped at ₹1,50,000.
Premiums for self, family and parents.
Self-occupied house, capped at ₹2,00,000.
Quick examples
New regime gives lower tax on ₹15,00,000 with your deductions.
What each result means
New regime tax
What it is: Lower slabs, almost no deductions.
Your value: ₹97,500
Default regime.
Old regime tax
What it is: Higher slabs, but deductions allowed.
Your value: ₹2,02,800
Must be chosen.
Lower-tax regime
What it is: The regime with less tax for these inputs.
Your value: New regime
Not advice — just the arithmetic.
Old-regime deductions needed to match
What it is: Deductions at which the old regime equals the new.
Your value: ₹5,93,748
Approximate break-even.
Year-by-year breakdown
| Gross income (₹) | Old regime (₹) | New regime (₹) | Difference (₹) |
|---|---|---|---|
| ₹7,50,000 | ₹18,200 | ₹0 | ₹18,200 |
| ₹11,25,000 | ₹96,200 | ₹0 | ₹96,200 |
| ₹15,00,000 | ₹2,02,800 | ₹97,500 | ₹1,05,300 |
Each row keeps your deductions the same and changes only the income, so you can see where the regimes cross.
Showing the first 3 of 6 years. Want charts, formulas and the full schedule? Get the detailed PDF.
What this calculator does
Compares your FY 2026–27 tax under both regimes side by side, using your deductions for the old one.
What your result means
The old regime only wins if your deductions are large enough to beat the new regime's lower slabs.
Formula
1. Income tax
Symbols
- Rebate
- Section 87A: new regime up to ₹60,000 if taxable ≤ ₹12 lakh; old regime up to ₹12,500 if ≤ ₹5 lakh
- 1.04
- 4% health and education cess
Why this formula works
India uses progressive slabs: each slice of income is taxed at its own rate.
Unit check
₹ = ₹ × (no unit). ✓
Common mistakes
Applying the top rate to the whole income. Forgetting cess. Claiming old-regime deductions in the new regime.
Working for your numbers
- New: taxable ₹14,25,000 → ₹97,500
- Old: taxable ₹12,75,000 → ₹2,02,800
Frequently asked questions
Is this the exact tax I will pay?
It is close for common cases, but it leaves out some special incomes, exemptions and set-offs. Confirm with Form 16, AIS and the Income Tax Department's own calculator before filing.
Can I switch every year?
Salaried people can choose each year when filing. People with business income can switch back to the old regime only once.
Does this calculator tell me what to do?
No. It is an educational estimate using published rules. It does not know your full situation. For a personal decision, speak to a qualified tax professional or a SEBI-registered investment adviser.
Symbols and assumptions
- Deductions
- 80C + 80D + home loan + standard deduction (₹)
- Salary income only; HRA not included (use the HRA calculator and add it to 80C if needed for a rough view).
- Figures are in Indian Rupees (₹).
Sources and review
Reviewed 2026-10-05 · Next review 2026-12-31
- Income Tax Department — tax calculators and rules
- Central Board of Direct Taxes — Acts, rules and notifications
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How it works
Compares the effective tax rate and liability under both regimes based on your deductions.
The formula
Tax (Old) vs Tax (New)- IT (O)
- Income Tax under Old Regime
- IT (N)
- Income Tax under New Regime
Worked example
Evaluating tax at ₹12L income with ₹2L deductions.
Pro tips
- New regime is often better for low-deduction earners.
- Old regime benefits those with home loans and high 80C.
Common mistakes
- Switching regimes without calculating the exact impact.
Go deeper
Concepts to explore
Related guides
Institutional grade calculations are illustrative and for educational wealth architecture. Results do not constitute investment advice.