ReadyBooks
Log in
Start Free
Live AI Engine Active
Free Tool

Old vs New Regime Income Tax Calculator

Enter your gross income once and see both regimes side by side for FY 2025-26 — standard deduction, slab tax, 87A rebate, 4% cess, and which one is cheaper.

Inputs

Gross total income (₹ / year)
Total income before any deduction (salary, business, other).
Age
Age only affects the old regime's basic exemption (₹2.5L / ₹3L / ₹5L).
Old-regime deductions (₹ / year)
80C, 80D, HRA exemption, home-loan interest, 80CCD(1B). Ignored under the new regime.
New regime is cheaper
Save ₹ 1,17,000

Old regime total tax

₹ 1,17,000

New regime total tax

₹ 0

New regime — taxable income

₹ 11,25,000

Tax before 87A rebate

₹ 52,500

87A rebate

-₹ 52,500

Health & education cess (4%)

₹ 0

New regime — total tax

₹ 0

How to compare the old and new tax regime

1

Enter your gross total income

This is your total annual income before any deduction — salary, business income, interest, rent, and capital gains added together. The calculator subtracts the standard deduction automatically (₹75,000 new regime, ₹50,000 old regime).

2

Select your age bracket

Age only changes the old regime. Below 60 gets a ₹2.5L basic exemption, senior citizens (60–80) get ₹3L, and super-seniors (above 80) get ₹5L. The new regime uses the same ₹4L exemption for everyone.

3

Add your old-regime deductions

Total up everything you can claim only under the old regime: 80C up to ₹1.5L (PF, ELSS, life insurance, home-loan principal), 80D health insurance, HRA exemption, home-loan interest under Section 24 (up to ₹2L), and 80CCD(1B) NPS up to ₹50k. The new regime disallows almost all of these, so they only reduce your old-regime tax.

4

Read both regimes side by side

The result shows the total tax under each regime, the cheaper one, and your saving. It also breaks down slab tax, the Section 87A rebate, and the 4% health & education cess. Copy or save the comparison.

Old vs new regime — answered with your numbers

Since FY 2023-24 the new tax regime is the default, but you can still opt for the old regime. The internet is full of "the new regime is always better" and "the old regime is always better" takes — both are wrong. The right regime depends entirely on how much you can deduct, and the only way to know is to compute both for your income and your deductions.

This calculator does exactly that. Enter your gross income, age, and total old-regime deductions once, and it shows the total tax under both regimes side by side — slab tax, Section 87A rebate, and 4% cess — and tells you which is cheaper and by how much. Every figure on this page is produced by the same engine, verified against the Income Tax Department's FY 2025-26 slabs.

New regime slabs (FY 2025-26 / AY 2026-27)

The new regime, as amended by the Finance Act 2025, has seven slabs and a ₹75,000 standard deduction for salaried taxpayers:

  • Up to ₹4,00,000: 0%
  • ₹4,00,000 – ₹8,00,000: 5%
  • ₹8,00,000 – ₹12,00,000: 10%
  • ₹12,00,000 – ₹16,00,000: 15%
  • ₹16,00,000 – ₹20,00,000: 20%
  • ₹20,00,000 – ₹24,00,000: 25%
  • Above ₹24,00,000: 30%

The Section 87A rebate is up to ₹60,000 for taxable income up to ₹12,00,000, which wipes out the tax completely up to that point. A 4% health & education cess applies on the tax after rebate. Worked figures from the engine:

  • Taxable income ₹12,00,000 → tax before rebate ₹60,000, rebate ₹60,000, total tax ₹0.
  • Taxable income ₹15,00,000 → tax ₹1,05,000 + 4% cess = ₹1,09,200.
  • Taxable income ₹16,00,000 → tax ₹1,20,000 + 4% cess = ₹1,24,800.
  • Taxable income ₹20,00,000 → tax ₹2,00,000 + 4% cess = ₹2,08,000.

Old regime slabs and the age effect

The old regime keeps the long-standing three-rate ladder above a basic exemption that varies by age:

  • Up to the basic exemption — ₹2,50,000 (below 60), ₹3,00,000 (senior 60–80), or ₹5,00,000 (super-senior above 80): 0%
  • Up to ₹5,00,000: 5%
  • ₹5,00,000 – ₹10,00,000: 20%
  • Above ₹10,00,000: 30%

The old-regime Section 87A rebate is only up to ₹12,500 and applies up to ₹5,00,000 taxable income — so tax becomes zero only up to ₹5L. A 4% cess applies on top. Worked figures (below-60) from the engine:

  • Taxable income ₹5,00,000 → tax ₹12,500, rebate ₹12,500, total tax ₹0.
  • Taxable income ₹10,00,000 → tax ₹1,12,500 + 4% cess = ₹1,17,000.
  • Taxable income ₹15,00,000 → tax ₹2,62,500 + 4% cess = ₹2,73,000.

Age matters only here. At ₹15,00,000 taxable income, a senior (60–80) pays ₹2,70,400 — exactly ₹2,600 less than the ₹2,73,000 a below-60 taxpayer pays, because the extra ₹50,000 exemption is taxed at 5% (×1.04 cess). This calculator applies the right exemption automatically when you pick your age.

Which regime wins — two worked examples

The decision hinges on your deductions. Two salaried examples, both computed by the engine:

Example 1 — ₹12,00,000 gross, ₹1,50,000 deductions (80C)

  • New regime: ₹12,00,000 − ₹75,000 standard deduction = ₹11,25,000 taxable. Tax after the 87A rebate = ₹0.
  • Old regime: ₹12,00,000 − ₹50,000 standard − ₹1,50,000 (80C) = ₹10,00,000 taxable. Tax = ₹1,17,000.
  • Verdict: the new regime wins by ₹1,17,000. With only an 80C deduction, the old regime cannot compete with the new-regime ₹12L rebate cliff.

Example 2 — ₹16,00,000 gross, ₹2,00,000 deductions

  • New regime: ₹16,00,000 − ₹75,000 = ₹15,25,000 taxable. Tax = ₹1,13,100.
  • Old regime: ₹16,00,000 − ₹50,000 standard − ₹2,00,000 = ₹13,50,000 taxable. Tax = ₹2,26,200.
  • Verdict: the new regime still wins by ₹1,13,100. The old regime would need far larger deductions — a full 80C + 80D + a big HRA exemption + ₹2L home-loan interest stacked together — before it overtakes the new regime at this income.

The pattern: for most salaried earners the new regime wins unless you carry a substantial deduction stack (typically a home loan plus maxed 80C/80D plus real HRA). Run your exact numbers above rather than relying on a rule of thumb.

Which deductions count under the old regime

The old regime's advantage is its deductions. The main ones you can stack:

  • Section 80C (up to ₹1,50,000): EPF, PPF, ELSS, life-insurance premium, home-loan principal, 5-year tax-saver FD, children's tuition.
  • Section 80CCD(1B) (up to ₹50,000): additional NPS Tier-I contribution, over and above the ₹1.5L 80C limit.
  • Section 80D: health-insurance premium — up to ₹25,000 for self/family, plus up to ₹50,000 for senior-citizen parents.
  • HRA exemption under Section 10(13A): the least of actual HRA, rent paid minus 10% of basic, or 50%/40% of basic (metro/non-metro).
  • Home-loan interest under Section 24(b): up to ₹2,00,000 on a self-occupied property.

The new regime disallows all of these except the standard deduction and the employer's NPS contribution under 80CCD(2). That is why the "deductions" field above only reduces the old-regime tax in this calculator.

From the calculator to your payslip and TDS

Your employer deducts TDS every month based on the regime you declare at the start of the year and the deductions you commit to. Pick the wrong regime in April, or over-declare deductions you never actually invest in, and the correction lands as a painful lump-sum TDS deduction in February-March.

Use this calculator before you submit your regime declaration so the monthly TDS matches reality. If you want to see the full salary picture — CTC to in-hand with PF, ESI, professional tax, and the same income-tax engine — use the Salary / CTC Calculator. For non-salary payments, the TDS Calculator covers Sections 194C, 194J, 194I, and more.

ReadyBooks Payroll runs the production payroll on the same dated tax engine — it computes monthly TDS per employee, generates payslips, and files Form 24Q automatically. Free for up to 5 employees. Save your figures above to carry them into setup.

Frequently asked questions

There is no universal answer — it depends on how much you can deduct. The new regime (the statutory default since FY 2023-24) has lower slabs, a ₹75,000 standard deduction, and a Section 87A rebate that makes tax zero up to ₹12L taxable income, so it wins for most people without large deductions. The old regime wins only when your deductions (80C ₹1.5L + 80D + HRA exemption + home-loan interest up to ₹2L + 80CCD(1B) ₹50k) are large enough to pull your old-regime taxable income far below the new-regime taxable income. This calculator computes both for your exact numbers so you do not have to guess.
Under the new regime for FY 2025-26, the Section 87A rebate covers the full tax up to ₹12,00,000 of taxable income. At exactly ₹12L taxable income the slab tax works out to ₹60,000, and the rebate is also ₹60,000 — so tax after rebate is ₹0, and with no tax there is no cess. Because the ₹75,000 standard deduction comes off your gross first, a salaried person earning up to ₹12,75,000 gross pays zero new-regime tax. One rupee of taxable income above ₹12L and the rebate disappears entirely (a marginal-relief cliff handled at filing).
The new regime slabs (Finance Act 2025, AY 2026-27) are: 0% up to ₹4L, 5% on ₹4L–8L, 10% on ₹8L–12L, 15% on ₹12L–16L, 20% on ₹16L–20L, 25% on ₹20L–24L, and 30% above ₹24L. So at ₹16L taxable income the tax before rebate is ₹1,20,000; after a 4% cess the total is ₹1,24,800 (no 87A rebate applies above ₹12L). All figures here are computed straight from these slabs.
The old regime slabs are 5% on income above the basic exemption up to ₹5L, 20% on ₹5L–10L, and 30% above ₹10L, plus 4% cess. Only the 0% basic exemption changes with age: ₹2.5L below 60, ₹3L for senior citizens (60–80), and ₹5L for super-seniors (above 80). For example, at ₹15L taxable income a person below 60 pays ₹2,73,000 in the old regime; a senior aged 60–80 pays ₹2,70,400 — exactly ₹2,600 less, because their extra ₹50,000 exemption is taxed at 5% (×1.04 cess).
In the new regime, the 87A rebate is up to ₹60,000 and applies when taxable income is ₹12,00,000 or less — making tax zero up to that point. In the old regime, the 87A rebate is only up to ₹12,500 and applies when taxable income is ₹5,00,000 or less. So under the old regime, tax becomes zero only up to ₹5L taxable income; under the new regime it stays zero all the way to ₹12L.
A salaried individual (income from salary, house property, other sources, no business income) can choose between old and new regime every financial year. If you have business or professional income, you can opt out of the new regime to the old regime only once, and switching back to the new regime is then a one-time choice for the rest of your working life. To use the old regime when you have business income, file Form 10-IEA before the income-tax return due date.
No. This tool covers the slab tax, the Section 87A rebate, and the 4% health & education cess — the figures that determine the old-vs-new decision for the vast majority of taxpayers. Surcharge (10% above ₹50L, 15% above ₹1cr, 25% above ₹2cr, and 37% above ₹5cr in the old regime; capped at 25% in the new regime) applies to very high incomes and is not modelled here. For incomes above ₹50L, treat the result as the base tax before surcharge and consult your CA.

Related free tools

Salary / CTC Calculator — In-Hand Breakdown

Convert CTC to in-hand salary. PF, ESI, professional tax, TDS, both old and new tax regimes. State-aware.

TDS Calculator — All Sections (194A/C/I/J/...)

Calculate TDS for sections 194A, 194C, 194H, 194I, 194J and more. Threshold-aware. PAN-aware (Sec 206AA). Free, instant.

Free GST Calculator — CGST/SGST/IGST

Calculate CGST, SGST, and IGST for any amount. Inclusive or exclusive of GST. Supports 5%, 12%, 18%, 28% rates. Free, instant, no signup.

Run payroll on the same tax engine, free

ReadyBooks Payroll computes monthly TDS per employee on the same dated FY 2025-26 tax engine, generates payslips, and files Form 24Q automatically. Free for up to 5 employees.

Chat on WhatsApp