Includes Section 80C (up to ₹1.5L), 80CCD NPS (up to ₹50k), HRA Exemption, 80D Health & 24b Home Loan Interest.
You save ₹1,63,800 by choosing the NEW REGIME
Under your income and deductions, the New Tax Regime incurs lower tax due to progressive slab brackets, the ₹75,000 standard deduction, and Section 87A rebate rules.
You need deductions greater than this amount for the Old Regime to yield lower tax.
New Tax Regime
Old Tax Regime
📊Side-by-Side Breakdown Matrix
Comprehensive comparison of taxable income, tax components, and final tax output.
| Tax Metric | New Tax Regime | Old Tax Regime |
|---|---|---|
| Gross Salary | ₹12,00,000 | ₹12,00,000 |
| Standard Deduction | - ₹75,000 | - ₹50,000 |
| Chapter VI-A Deductions | ₹0 | ₹0 |
| Taxable Net Income | ₹11,25,000 | ₹11,50,000 |
| Tax after Rebate / Relief | ₹0 | ₹1,57,500 |
| Surcharge | ₹0 | ₹0 |
| Health & Education Cess (4%) | ₹0 | ₹6,300 |
| Total Payable Tax | ₹0 | ₹1,63,800 |
Why this isn't a one-size-fits-all answer
Understanding deduction breakeven points, marginal relief, and annual regime selection.
Every general-purpose piece of advice about "which regime is better" is wrong for someone, because the honest answer depends entirely on one thing: how much you can legitimately deduct under the old regime. The new regime has lower rates but allows almost nothing to be deducted. The old regime has higher rates but lets you subtract HRA, investments, and loan interest before tax even applies. Which one wins is arithmetic, not opinion — and it changes as your numbers change.
That's exactly why this page exists as a calculator rather than an article. An article can only ever describe the general shape of the tradeoff; it can't know your actual rent, your actual 80C contributions, or your actual income this year. Type your numbers in above and the comparison is specific to you, updated the moment anything changes — no spreadsheet, no manual slab lookups, no guessing which side of the rebate threshold you land on.
What actually moves the needle
For most salaried people with modest deductions, the new regime wins outright thanks to its larger standard deduction (₹75,000) and the ₹12,00,000 rebate threshold. The old regime competes when HRA, 80C, and home loan interest exceed your breakeven threshold.
Rebate threshold & marginal relief
Because the new regime's 87A rebate zeroes out tax entirely up to ₹12,00,000 taxable income, and tapers gently above it through marginal relief, the old regime requires a larger deduction to catch up near that boundary.
Annual regime switching for salaried employees
If your only income is salary, you can pick either regime when filing your annual Income Tax Return (ITR). Employer TDS default is for monthly withholding only.
Age categories & basic exemptions
The old regime provides higher basic exemption limits for Senior Citizens (₹3,00,000 for ages 60-79) and Super Senior Citizens (₹5,00,000 for ages 80+). The new regime uses unified slab rates for all age groups.
Frequently asked questions
Which regime is better for me?
It depends entirely on how much you can deduct under the old regime. Enter your deductions above and this tool tells you directly — there's no universal answer, because it depends on your specific HRA, investments, and loan interest.
Can I switch between regimes every year?
Salaried individuals without business income can choose either regime each year when filing their return, and can switch back and forth. If you have business or professional income, switching back to the old regime after opting for the new one is more restricted — check with a chartered accountant if this applies to you.
What deductions does the old regime allow that the new regime doesn't?
HRA exemption, Section 80C investments (PPF, ELSS, life insurance premiums, and more, up to ₹1,50,000), an additional ₹50,000 under 80CCD(1B) for NPS, and home loan interest on a self-occupied property up to ₹2,00,000. The new regime allows none of these — only the standard deduction and employer NPS contributions under 80CCD(2).
Does my employer decide which regime applies to me?
Your employer picks a default for TDS purposes if you don't declare a preference, and since FY 2023-24 that default is the new regime. But you can still choose either regime when you file your actual return, regardless of what your employer withheld during the year.
Why is the new regime the default now?
Since FY 2023-24, the new regime is the default under the Income Tax Act unless you actively opt for the old one. It has lower rates and a larger standard deduction, and Budget 2025 raised the 87A rebate ceiling to ₹12,00,000 taxable income specifically under the new regime, making it a clear win for most people without large deductions.
I'm close to the ₹12L rebate threshold under the new regime — does that change the comparison?
It can. Just above ₹12,00,000 taxable income, marginal relief keeps the new regime's tax very low for a wide band above the threshold, which can make it win even against a moderate old-regime deduction. This tool applies that relief correctly, so the comparison already accounts for it — you don't need to calculate it separately.
Does this account for capital gains or other income?
No — this compares salary income only, taxed under either regime's slabs. Capital gains have their own tax treatment under both regimes and aren't part of this comparison.
This is an estimate for informational purposes, not tax advice. Verify with a chartered accountant or at incometaxindia.gov.in before making financial decisions.
Last verified: August 2026 · FY 2026-27 rates