Real numbers at six income levels. Zero tax up to ₹12.75L in the new regime. Know your break-even before choosing.
The Core Trade-Off
The New Regime offers lower tax rates but you give up most deductions (HRA, 80C, 80D, home loan interest, LTA). The Old Regime has higher rates but lets you reduce taxable income through deductions — potentially saving more tax if your deductions are high.
FY 2025-26 game-changer: Under the New Regime, salaried income up to ₹12.75 lakh is completely tax-free (87A rebate covers full tax). The Old Regime can only beat this above ₹12.75L and only with very high deductions (₹5.5L+). Use the calculator below — for most people, New Regime now wins.
FY 2025-26 Tax Slabs — Side by Side
New Regime (default)
Up to ₹4 lakh0%
₹4L – ₹8L5%
₹8L – ₹12L10%
₹12L – ₹16L15%
₹16L – ₹20L20%
₹20L – ₹24L25%
Above ₹24L30%
Standard deduction₹75,000
87A rebate (if taxable ≤ ₹12L)Up to ₹60,000
Old Regime
Up to ₹2.5 lakh0%
₹2.5L – ₹5L5%
₹5L – ₹10L20%
Above ₹10L30%
Standard deduction₹50,000
87A rebate (if income ≤ ₹5L)Up to ₹12,500
Major deductions available80C, HRA, 80D, NPS…
Note: 4% Health & Education Cess applies on both regimes. Surcharge applicable above ₹50L.
Which Regime Wins at Different Income Levels?
New Regime assumes ₹75,000 standard deduction only. Old Regime assumes typical deductions: ₹50K standard + ₹1.5L (80C) + ₹25K (80D) + ₹1.2L HRA = ₹3.45L total.
Gross Income
New Regime Tax
Old Regime Tax
Winner
You Save
₹6,00,000
₹0
₹0
Tie
₹0
₹8,00,000
₹0
₹0
Tie
₹0
₹10,00,000
₹0
₹45,240
New Regime
₹45,240
₹12,00,000
₹0
₹86,840
New Regime
₹86,840
₹15,00,000
₹97,500
₹1,65,360
New Regime
₹67,860
₹20,00,000
₹1,92,400
₹3,21,360
New Regime
₹1,28,960
*Includes 4% cess. Old regime: ₹3.45L total deductions (std ₹50K + 80C ₹1.5L + 80D ₹25K + HRA ₹1.2L). New regime: ₹75K std deduction only. Actual tax varies with your specific deductions.
The FY 2025-26 Reality:
The New Regime's 87A rebate now covers up to ₹60,000 in tax — making taxable income up to ₹12L (gross ₹12.75L for salaried) completely tax-free. At ₹10L and ₹12L, the new regime delivers ₹0 tax vs ₹45,240 and ₹86,840 in the old regime. Old regime can only match new regime above ₹15L income and only if your total deductions (80C + HRA + 80D + NPS + home loan) exceed ~₹5.5–6L.
Top Deductions Available ONLY in Old Regime
Section 80C (₹1.5L) — EPF, ELSS, LIC, PPF, NSC, home loan principal repayment
HRA Exemption — Often ₹1–2L+ for city residents paying significant rent
Section 80D (₹25K–₹50K) — Health insurance premium (+ ₹25K for parents)
Section 80CCD(1B) (₹50K) — Extra NPS contribution beyond 80C limit
Home Loan Interest (Section 24b) — Up to ₹2L on self-occupied property
LTA (Leave Travel Allowance) — 2 journeys in 4-year block
If you're using all of these, your total deductions can reach ₹6–6.5L. At that level, the old regime starts to be competitive above ₹15–20L income — but even then, the new regime often comes out ahead. Run both scenarios in our calculator with your actual numbers before deciding.
Calculate Your Exact Tax — Both Regimes
Enter your income and deductions to instantly compare New Regime vs Old Regime tax and see which saves you more — with a full slab-by-slab breakdown.
Yes, for salaried employees in FY 2025-26. With a ₹75,000 standard deduction, gross income of ₹12.75L → taxable income of ₹12L. On ₹12L taxable, the Section 87A rebate covers the full tax liability (rebate up to ₹60,000; tax on ₹12L = ₹60,000 exactly — 5%×₹4L + 10%×₹4L = ₹20,000 + ₹40,000). So net tax = ₹0. For gross income up to ₹12.75L with only salary income, the new regime is zero tax with no investment needed.
Salaried employees can choose a different regime when filing their ITR, regardless of what they declared to their employer during the year. If you declared new regime to employer (so less TDS was deducted) but want to file old regime ITR, you can — you'll just pay the additional tax while filing (or claim a refund if old regime gives you a refund). The annual filing is the final determination of your regime choice for that year.
No — the investments themselves still make financial sense (PPF is tax-free at 7.1%, ELSS has excellent long-term returns). The new regime just doesn't give you a tax deduction for making these investments. If you choose new regime, you invest for returns/goals, not tax savings. PPF's EEE status (tax-free interest + maturity) still benefits new regime filers — only the initial deduction is lost. Continue PPF/ELSS if the investment case is strong, even without the deduction.
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