The biggest tax question every Indian salaried employee faces: New Regime or Old Regime — which saves me more money? Budget 2025 made New Regime extremely attractive with zero tax up to ₹12 lakh. Budget 2026 made no changes. Here's the complete answer for every salary level.
| Annual Salary | New Regime Tax | Old Regime Tax (with 80C+HRA) | Better Regime |
|---|---|---|---|
| ₹8 Lakh | ₹0 (Zero!) | ₹23,400–₹46,800 | 🟢 New Regime |
| ₹10 Lakh | ₹0 (Zero!) | ₹46,800–₹70,200 | 🟢 New Regime |
| ₹12 Lakh | ₹0 (Zero!) | ₹70,200–₹93,600 | 🟢 New Regime |
| ₹12.75L (salaried) | ₹0 (Zero!) | ₹79,560+ | 🟢 New Regime |
| ₹15L (low deductions) | ₹97,500 | ₹1,31,040 | 🟢 New Regime |
| ₹15L (max deductions) | ₹97,500 | ₹70,200 | 🔵 Old Regime |
| ₹20L (high deductions) | ₹2,34,000 | ₹1,40,400 | 🔵 Old Regime |
| ₹30L (very high deductions) | ₹4,68,000 | ₹3,27,600 | 🔵 Old Regime |
*Old Regime assumes: ₹1.5L 80C + ₹50K NPS + ₹25K 80D + ₹1L HRA (varies). For exact calculations, use our Income Tax Calculator.
| Income Slab | Tax Rate | Tax on Slab |
|---|---|---|
| Up to ₹4 Lakh | 0% | ₹0 |
| ₹4L – ₹8L | 5% | Up to ₹20,000 |
| ₹8L – ₹12L | 10% | Up to ₹40,000 |
| ₹12L – ₹16L | 15% | Up to ₹60,000 |
| ₹16L – ₹20L | 20% | Up to ₹80,000 |
| ₹20L – ₹24L | 25% | Up to ₹1,00,000 |
| Above ₹24L | 30% | 30% of amount above ₹24L |
Note: Section 87A rebate makes tax zero if taxable income ≤ ₹12L. Salaried get ₹75K standard deduction, making salary up to ₹12.75L effectively zero-tax.
Yes! Salaried employees can switch every year. Tell your employer which regime to use for TDS at the start of the financial year. You can also change your choice while filing ITR.
Enter your salary and deductions — get exact tax for both regimes with side-by-side comparison.
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