Old vs New Tax Regime Calculator
Compare your tax liability under the old and new tax regimes and find which one saves you more.
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Based on your inputs
New Regime saves ₹1,05,300
per year
Old Regime
Taxable Income₹12,75,000
Deductions₹2,25,000
Income Tax₹1,95,000
Cess₹7,800
Total Tax₹2,02,800
New Regime
Taxable Income₹14,25,000
Std. Deduction₹75,000
Income Tax₹93,750
Cess₹3,750
Total Tax₹97,500
Frequently Asked Questions
Which tax regime is better for me?▼
It depends on your deductions. If you claim significant deductions under 80C, 80D, HRA, and home loan interest, the old regime may save more tax. If your deductions are limited, the new regime with its lower slab rates is usually better.
Can I switch between old and new regime every year?▼
Salaried individuals can switch between the old and new regime each financial year at the time of filing their ITR. However, those with business income can only switch once.
What is the standard deduction under each regime?▼
For FY 2025-26 (AY 2026-27), the standard deduction is ₹75,000 under the new regime and ₹50,000 under the old regime for salaried individuals and pensioners.
What is the rebate under Section 87A / Section 157?▼
Under the new Income Tax Act 2025 (Section 157, formerly 87A), taxpayers with taxable income up to ₹12 lakh under the new regime get a rebate of up to ₹60,000, making their tax liability nil. Under the old regime, the rebate is ₹12,500 for income up to ₹5 lakh.
This calculator provides estimates for informational purposes only. Actual outcomes may vary based on applicable laws, financial institutions, products and individual circumstances.