Two regimes, one simple question: which one costs you less?
Every salaried Indian now faces the same fork in the road at filing time. Pick the new regime and you get lower slab rates but almost no deductions. Stick with the old one and you keep your 80C, HRA and home loan breaks — but pay higher rates on what's left.
There's no rule of thumb that fits everyone. A colleague paying a big home loan EMI and full rent might genuinely be better off on the old regime, while the person sitting next to them, with no such outgoings, saves more on the new one. The only honest way to know is to run your own numbers — which is exactly what the calculator above does the instant you type. Enter your salary, add any deductions, and toggle between the two regimes to see the difference in rupees, not theory.
For FY 2025-26, income up to ₹12 lakh is effectively tax-free under the new regime because of the enhanced Section 87A rebate. Add the ₹75,000 standard deduction and a salaried person earning around ₹12.75 lakh can walk away paying nothing. We break the maths down on is ₹12 lakh tax-free?
New tax regime slabs for FY 2025-26
These are the rates the calculator applies by default. Notice how the exemption limit has climbed to ₹4 lakh and the bands are wider and gentler than the old structure. You only ever pay the rate shown on the slice of income that falls in each band — never one flat rate on the whole amount.
| 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% |
Want the full breakdown, including the old-regime slabs and the senior-citizen exemptions? Our income tax slabs guide for FY 2025-26 lays them all out side by side, and how income tax is calculated walks through the sequence step by step.
How to use this calculator in four steps
Set your age
Below 60, 60–80 or above 80. It changes the old-regime exemption limit.
Enter income
Type your salary or just drag the slider. Add interest or rent under "other sources".
Add deductions
List 80C, 80D, NPS, home loan interest and HRA to lower tax on the old regime.
Compare
Toggle old vs new and read the "saves you ₹…" line. Download the report to keep it.
A quick worked example
Say Ravi earns a gross salary of ₹14,00,000 and has no deductions worth mentioning. On the new regime his taxable income is ₹13,25,000 after the standard deduction, and his tax works out to roughly ₹90,000 including cess. On the old regime, with only the ₹50,000 standard deduction, the same salary attracts far more — well over ₹1.9 lakh. For Ravi, the new regime is a clear winner.
Now give Ravi a ₹2 lakh home loan interest bill, a full ₹1.5 lakh in 80C, and ₹25,000 of health insurance, and the old regime suddenly claws a lot of that back. That flip is the whole point of comparing — and it takes one tap here. If you want to push your deductions further, read how to save income tax legally, then check where you land with old vs new.
Why use this calculator
Plenty of tax tools exist, but most show a single number and leave you guessing whether the other regime would have been kinder. This one is built around the comparison. Every time you change a figure, it recalculates both regimes and tells you, in plain language, which is cheaper and by how much.
- Both regimes, side by side. No switching tabs or re-entering numbers — the verdict updates as you type.
- Accurate for FY 2025-26. It uses the current slabs, the ₹75,000 and ₹50,000 standard deductions, the Section 87A rebate with marginal relief, surcharge bands and the 4% cess.
- Private by design. Nothing you enter leaves your browser. There's no sign-up and no data collection — see our privacy policy.
- A report you can keep. Hit "Download report" to save a clean summary of your calculation and the old-vs-new comparison.
Popular tax guides
Short, plain-English explainers for the questions people ask most about the new tax regime.
Frequently asked questions
Is income up to ₹12 lakh really tax-free?
Yes. Under the new regime for FY 2025-26, the Section 87A rebate reduces your tax to zero if your taxable income is up to ₹12,00,000. Salaried people get the ₹75,000 standard deduction on top, so a salary of roughly ₹12.75 lakh can be fully tax-free.
Which deductions are allowed in the new regime?
Only the ₹75,000 standard deduction and the employer's NPS contribution under Section 80CCD(2). The familiar ones — 80C, 80D, HRA, home loan interest — do not apply. That's the trade-off for the lower rates.
Is the new regime the default now?
Yes. If you do nothing, you're taxed under the new regime. You can still choose the old regime when you file, provided it works out cheaper for you.
How much tax do I pay on a ₹15 lakh salary?
On the new regime, a ₹15 lakh salary with only the standard deduction attracts roughly ₹97,000. With a full set of deductions, the old regime can come out lower. Enter ₹15,00,000 above and toggle both to see your exact figures.
Does this calculator store my data?
No. Every calculation runs in your own browser. Nothing you type is sent anywhere or saved. See our privacy policy for details.