⚖️ FY 2025-26 · Budget 2025 · Instant Side-by-Side
Old vs New Tax Regime — Compare Instantly
Enter salary + deductions → see exact tax in both regimes. Know which saves more with full breakdown, tips, PDF download and WhatsApp share.
Zero tax up to ₹12L (new)
Old regime saves with deductions
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Old vs New Tax Regime — Complete Guide FY 2025-26
The new tax regime (default from FY 2024-25) offers zero tax on income up to ₹12 lakh via 87A rebate and simpler slab structure. The old regime allows deductions under 80C, HRA, home loan interest, NPS, and health insurance but has higher base rates. The right choice depends entirely on your total deductions — use the calculator above to compare for your exact situation.
The Deduction Break-Even — When to Choose Old Regime
Old regime beats new regime only when your deductions exceed a threshold. Approximate break-even deductions: ₹10L income → ₹2.5L deductions needed. ₹15L income → ₹3.75L needed. ₹20L income → ₹4L needed. ₹25L income → ₹4.5L needed. If you have home loan (₹2L interest) + NPS (₹50K) + 80C (₹1.5L) + HRA (₹1L+) = ₹5L+ deductions, old regime almost certainly wins for ₹15L+ salary.
New Regime Tax Slabs FY 2025-26
₹0-4L: 0%, ₹4-8L: 5%, ₹8-12L: 10%, ₹12-16L: 15%, ₹16-20L: 20%, ₹20-24L: 25%, above ₹24L: 30%. Standard deduction ₹75,000. Zero tax up to ₹12L via 87A rebate of ₹60,000. This means ₹12L salary = zero tax payable.
Can You Switch Regime Every Year?
Salaried employees can switch between regimes every year. Inform your employer at the start of the financial year for correct TDS. Even if you miss telling your employer, you can choose your preferred regime while filing ITR. Business owners can switch only once from new to old regime — choose carefully. For most salaried Indians, switching based on your deduction situation each year is perfectly legal and smart.
Frequently Asked Questions
For ₹12 lakh salary which regime is better?▼
New regime: Zero tax (87A rebate covers full liability). Old regime with standard deduction only: also zero tax. But if you have HRA or other deductions, old regime may give refund/negative tax — though zero is already the minimum. For ₹12L with no deductions: new regime (simpler). With HRA or home loan: calculate using the tool above.
Is NPS beneficial in new tax regime?▼
Only employer's NPS contribution under 80CCD(2) — up to 10% of basic salary — is deductible in new regime. Your own NPS investment under 80CCD(1B) (₹50K extra) is NOT available in new regime. This makes old regime more attractive for those actively investing in NPS.
What deductions are available in new regime 2025-26?▼
New regime allows: Standard deduction ₹75,000, Employer's NPS contribution (80CCD-2), gratuity exemption, leave encashment exemption, Agniveer corpus. NOT available: 80C investments, HRA, home loan interest (24b), 80D health insurance, NPS own contribution, LTA, professional tax.
How to download my tax comparison as PDF?▼
Click the "Download PDF Report" button above after entering your salary and deductions. A print dialog will open — select "Save as PDF" as the destination. The report includes your salary, tax under both regimes, savings amount, and which regime is recommended.