Old vs New Tax Regime Calculator — Which Saves More Tax? (FY 2025-26)
Compare old vs new tax regime for FY 2025-26. Side-by-side slab comparison, deduction analysis, and break-even point by salary. Find which regime saves you more tax.
From FY 2023-24, the new tax regime became the default. If you don't explicitly choose the old regime, you're automatically in the new one. The question most salaried Indians are wrestling with: does claiming all those deductions under the old regime actually save more than the simpler new slabs?
The answer is genuinely "it depends" — and the CalcHub Old vs New Tax Regime Calculator gives you the exact comparison for your income and deductions.
Tax Slab Comparison — FY 2025-26
New Tax Regime (Default)
| Income Slab | Tax Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Old Tax Regime
| Income Slab | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Comparison at Key Salary Levels
After standard deduction (₹75K new / ₹50K old), all amounts in ₹:| Gross Salary | New Regime Tax | Old Regime (with ₹3L deductions) | Winner |
|---|---|---|---|
| ₹8,00,000 | ₹0 (≤₹12L threshold) | ₹0 (after deductions) | Tie |
| ₹12,00,000 | ₹0 | ~₹27,500 | New regime |
| ₹15,00,000 | ₹1,17,000 | ~₹1,57,500 (with ₹3L deductions) | New regime |
| ₹18,00,000 | ₹2,07,000 | ~₹1,42,500 (with ₹4L deductions) | Old regime |
| ₹25,00,000 | ₹4,17,000 | ~₹2,92,500 (with ₹5L deductions) | Old regime |
| ₹35,00,000 | ₹7,17,000 | ~₹5,77,500 (with ₹5L deductions) | Old regime |
Break-Even Analysis
The new regime typically wins below ₹15–17 lakh if your deductions are limited. The old regime wins if your deductions are substantial.
Break-even deduction amount (approximately, for someone in ₹15–25L range):- You need at least ₹3.75 – ₹4.5 lakh in deductions to make the old regime better than the new regime
| Deduction | Max Amount |
|---|---|
| Section 80C (EPF, PPF, ELSS, LIC, home loan principal) | ₹1,50,000 |
| Section 80D (health insurance premium) | ₹25,000 (₹50K if senior citizen) |
| Section 24(b) (home loan interest) | ₹2,00,000 |
| HRA exemption | Varies (up to 50% of basic) |
| Section 80CCD(1B) — NPS extra | ₹50,000 |
| Section 80E — education loan interest | No limit |
Who Should Choose Which
New regime likely better if:- No home loan (no 24b deduction)
- Renting below the 10%-of-salary threshold (minimal HRA benefit)
- No dependents requiring health insurance premium
- Salary below ₹15 lakh
- Prefer simplicity over optimisation
- Home loan with significant interest component (₹1.5–2L/year)
- Paying high rent in a metro city (HRA exemption is substantial)
- Actively investing in PPF/ELSS for 80C + NPS for 80CCD(1B)
- High health insurance premiums for family
- Salary above ₹20 lakh
One Decision, Made Once Per Year
You must communicate your regime choice to your employer at the start of each financial year — typically April. Once chosen for TDS purposes, you can change it when filing your actual ITR (but only once). Business income earners have stricter rules — they can switch regime only once in a lifetime.
Can I switch between regimes every year?
Yes — if you're salaried with no business income. You can pick old regime for one year and new regime the next, depending on whichever saves more. Your employer deducts TDS based on your declared choice for that year, but the final regime choice is made at ITR filing.
Does the new regime benefit higher income earners?
Not as much. At ₹50 lakh+ salary, the 30% slab kicks in at ₹24 lakh under the new regime vs ₹10 lakh under the old regime. But someone at ₹50 lakh with ₹5–6 lakh in deductions (home loan, NPS, 80C, 80D) will almost certainly save more under the old regime.
Do I need to declare anything to get new regime benefits?
No declaration needed — the new regime is the default. To opt for the old regime, you must submit Form 10-IEA (for business income earners) or inform your employer in writing before the financial year starts.
Related Calculators
- Income Tax Calculator India — compute exact tax under both regimes
- HRA Calculator — check your HRA exemption value
- NPS Calculator — additional 80CCD(1B) benefit
- TDS Calculator — understand monthly TDS deduction