Old vs New Tax Regime Comparison
Compare what you'd pay under the old and new regimes for your income and deductions — and see the exact income at which the cheaper choice flips, not just one verdict for today.
Slab, rebate and cess figures shown are for FY 2025-26 — confirm current rates before relying on this. Ignores surcharge (relevant only above ₹50L/₹1Cr income) and does not model capital gains or presumptive income. This is a calculator, not tax advice.
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| Old regime | New regime |
|---|---|
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| Cess (4%) {{ fmt(compare.old.cess) }} | Cess (4%) {{ fmt(compare.neu.cess) }} |
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Where the answer flips, at your deductions
Holding your deductions fixed, this scans gross income from ₹5L to ₹30L and shows where the cheaper regime changes — not just a verdict for the one income you typed in.
At your current deductions, the cheaper regime changes near {{ crossoverSeries.crossings.map(fmt).join(', ') }} of gross income.
Across ₹5L–₹30L at your current deductions, one regime stays cheaper the whole way — no crossover in this range.
Enter your gross annual income above to compare both regimes.
Every calculation runs in your browser. Nothing you enter is uploaded to a server.
Why there's no single "better regime" answer
The new regime has wider slabs and a bigger standard deduction, but allows almost no other deductions. The old regime taxes more of your income at each slab, but every rupee of 80C, 80D, home loan interest, NPS and HRA exemption you can genuinely claim lowers what's actually taxed. Which one wins depends on income and how much you can claim — which is why the crossover chart above, not a single verdict, is the useful output here.
Section 87A rebate works differently in each regime: the old regime caps the rebate at ₹12,500 for incomes at or below ₹5L, while the new regime gives a full rebate below ₹12L with marginal relief just above it, so crossing the threshold by ₹1 never costs more than ₹1 of extra tax.
What this tool deliberately leaves out
Surcharge — an extra charge on top of tax, relevant only above ₹50L (old regime) or somewhat different thresholds under the new regime — is out of scope here rather than silently wrong for high earners: it only starts to matter well above the ₹5L–₹30L range this comparison focuses on. Capital gains, presumptive income, and anything beyond salary plus the deductions listed above are not modelled either. Treat this as a comparison for salaried income under common deductions, not a full return.
Frequently asked questions
Which regime is better?
It depends on your income and how much you can genuinely claim under the old regime's deductions — there is no fixed answer. The crossover chart on this page shows the exact income at which the cheaper regime changes for your specific deduction total.
What is the Section 87A rebate?
A rebate that can zero out your tax below a threshold. The old regime caps it at ₹12,500 for taxable income at or below ₹5L. The new regime gives a full rebate below ₹12L, with marginal relief just above that threshold so crossing it by ₹1 never costs more than ₹1 of extra tax.
Can I use old-regime deductions like 80C under the new regime?
No — the new regime allows only the standard deduction. This tool never applies your 80C, 80D, home loan or NPS entries to the new-regime column, even though they're right there in the form.
Does this account for surcharge on high incomes?
No — surcharge (relevant only above ₹50L/₹1Cr income) is explicitly out of scope here, stated on the page rather than silently producing a wrong number for high earners.
How is the HRA exemption calculated?
The least of three amounts: HRA actually received, rent paid minus 10% of Basic, and 50% (metro) or 40% (non-metro) of Basic — the same Section 10(13A) rule the CTC Calculator uses, not a second implementation.