Old vs New Tax Regime Calculator

Taxes

Enter your salary and deductions to compare income tax under both the Old and New regimes side by side — and instantly see which one costs you less.

Free · No sign-up · Private6 min readUpdated 27 July 2026

In short: The New regime taxes the same salary at lower slab rates but allows only the ₹50,000 standard deduction, while the Old regime uses higher rates but lets you subtract 80C, HRA, 80D and home-loan interest — so the cheaper regime depends entirely on how much you can deduct.

Your inputs

Results

New regime tax

₹1,35,200

Incl. ₹50,000 std. deduction & 4% cess

Old regime tax

₹1,79,400

After ₹2,50,000 deductions + std. deduction

You save

₹44,200

By choosing the New regime

Lower tax

₹1,35,200

New regime is cheaper for you

Old vs New regime tax

Total tax payable under each regime for the same salary, including 4% cess.

Regime-wise comparison

Regime-wise comparison
Regime	Taxable income	Slab tax	Cess (4%)	Total tax
New regime	₹14,50,000	₹1,30,000	₹5,200	₹1,35,200
Old regime	₹12,00,000	₹1,72,500	₹6,900	₹1,79,400

Both figures include the ₹50,000 standard deduction and 4% health & education cess. Deductions apply only to the old regime.

Formula

New: tax(gross − 50,000) • Old: tax(gross − 50,000 − deductions) • pick min(New, Old) + 4% cess

gross: Gross annual salary before any deductions
New regime: Lower slabs; only the ₹50,000 standard deduction; §87A rebate up to ₹7L
Old regime: Higher slabs; full deductions (80C, HRA, 80D…); §87A rebate up to ₹5L
cess: 4% health & education cess added to the slab tax of each regime

Step-by-step calculation

Worked with the default values.

1
New regime taxable income
₹15,00,000 − ₹50,000 std. deduction
= ₹14,50,000
2
Old regime taxable income
₹15,00,000 − ₹50,000 std. deduction − ₹2,50,000 deductions
= ₹12,00,000
3
New regime tax (incl. 4% cess)
slab tax ₹1,30,000 + cess ₹5,200
= ₹1,35,200
4
Old regime tax (incl. 4% cess)
slab tax ₹1,72,500 + cess ₹6,900
= ₹1,79,400
5
Recommended: New regime
min(New, Old) — you save ₹44,200
= New regime (₹1,35,200)

How it works

The New regime applies the ₹50,000 standard deduction to your salary, then taxes the balance at its lower slab rates.
The Old regime subtracts the ₹50,000 standard deduction plus your total deductions first, then applies its higher slab rates.
Both add a 4% cess and the §87A rebate, and the calculator names whichever regime yields the lower total tax plus your exact saving.

Examples

₹15,00,000 salary with ₹2,50,000 deductions

Old-regime taxable income drops to ₹12L, but the New regime's lower slabs often still win at this deduction level — the calculator shows by how much.

₹15,00,000 salary with ₹4,50,000 deductions

Heavy 80C + HRA + home-loan claims pull old-regime taxable income to ~₹10L, tipping the balance toward the Old regime.

Understanding the Old vs New Tax Regime Calculator

Old vs New — one salary, two tax systems

Every salaried taxpayer in India now picks between two regimes for the same income. The New regime taxes salary at lower slab rates but strips away almost every deduction, allowing little beyond the ₹50,000 standard deduction. The Old regime keeps higher rates but lets you subtract a full stack of deductions — Section 80C, HRA, 80D health insurance and home-loan interest. This calculator runs your salary through both and flags the cheaper one.

How the comparison works

For a fair like-for-like result, the calculator applies the ₹50,000 standard deduction under both regimes:

New regime — taxable income is gross salary minus the ₹50,000 standard deduction, taxed at the New slabs.
Old regime — taxable income is gross salary minus the ₹50,000 standard deduction and the deductions you enter, taxed at the Old slabs.

Both then add a 4% health and education cess and apply the §87A rebate, which zeroes tax up to ₹7 lakh of taxable income under the New regime and ₹5 lakh under the Old.

The break-even is all about deductions

The decision hinges on how much you can legitimately deduct:

With modest deductions, the New regime's lower rates produce a smaller bill — this is the common case for renters without a home loan or large 80C investments.
With large deductions — a maxed-out ₹1.5 lakh under 80C, substantial HRA and ₹2 lakh of home-loan interest — the Old regime overtakes it.

There is a crossover point where your deductions exactly cancel the rate advantage. That break-even rises with income: the more you earn, the more you must deduct to make the Old regime worthwhile. The calculator finds your personal crossover so you don't have to guess.

Use it, then confirm

This tool is a fast, reliable guide to slab tax and cess on salary income. It does not model the surcharge on incomes above ₹50 lakh, capital gains, or the section-by-section caps on each deduction. Treat the result as your starting point: pick a regime, plan your investments and declarations around it, then verify the final figures against your Form 16 or with a tax professional before filing. Revisit the comparison whenever your income or deductions change materially — a single new home loan can be enough to flip the answer.

Pros

Compares both regimes on the same salary and names the cheaper one with your exact rupee saving.
Applies the ₹50,000 standard deduction and 4% cess consistently to both sides for a fair comparison.
Reflects the §87A rebate difference (₹7L New vs ₹5L Old) that makes many salaries tax-free.
Shows the taxable income each way, so you can see how your deductions move the break-even.
Helps you decide whether it is worth chasing 80C, HRA and home-loan claims at all.

Cons

Models slab tax and cess only — surcharge on incomes above ₹50 lakh is not included.
Uses a single deductions total rather than validating each section's individual cap.
Assumes salary income; capital gains and special-rate incomes are taxed separately.
Does not account for mid-year changes such as job switches, arrears or bonuses.

Tips

1Add up every Old-regime deduction — 80C, HRA, 80D, home-loan interest — before comparing, or you will understate the Old regime's advantage.
2If your deductions are below roughly ₹3–4 lakh, the New regime usually leaves you better off.
3Use the employer NPS contribution under 80CCD(2) — it lowers tax even under the New regime.
4Re-run this comparison each year, since a new home loan or a raise can flip the winning regime.
5Declare your chosen regime to your employer early so TDS is deducted correctly and you avoid a year-end shortfall.

Frequently asked questions

Everything you need to know about the Old vs New Tax Regime Calculator.

Which regime is better — Old or New?

It comes down to your deductions. If you claim little beyond the standard deduction, the New regime's lower slab rates usually win. If you have a full ₹1.5L under 80C, substantial HRA and ₹2L of home-loan interest, the Old regime can be cheaper. This calculator compares both for your exact numbers.

What is the break-even level of deductions?

There is a crossover point where your deductions exactly offset the New regime's lower rates. Below it the New regime is cheaper; above it the Old regime wins. The break-even rises with income — at higher salaries you need larger deductions to justify staying on the Old regime. The calculator finds your personal crossover automatically.

Is the ₹50,000 standard deduction available in both regimes?

Yes. From FY 2023-24 the ₹50,000 standard deduction for salaried taxpayers and pensioners applies under both regimes. This calculator subtracts it under both — under the New regime automatically, and under the Old regime in addition to the deductions you enter.

Which deductions count only under the Old regime?

Section 80C (EPF, PPF, ELSS, life insurance, home-loan principal, tuition fees), HRA exemption, 80D health-insurance premiums, and home-loan interest under Section 24 are all Old-regime only. Enter their combined total in the deductions field. The New regime disallows almost all of these.

Are any deductions allowed under the New regime?

Very few. The New regime permits the ₹50,000 standard deduction and the employer's NPS contribution under 80CCD(2), plus a handful of niche items, but not 80C, HRA or 80D. That is why the New regime only makes sense when your other deductions are modest.

What is the §87A rebate and how does it differ between regimes?

The §87A rebate makes your tax nil below a threshold — up to ₹7 lakh of taxable income under the New regime and ₹5 lakh under the Old regime. Because the New regime's rebate reaches higher, many salaries up to about ₹7.5L pay zero tax under it.

Can I switch regimes every year?

Salaried individuals without business income can choose afresh each financial year. Those with business or professional income can opt out of the New regime only once and face restrictions on switching back. The New regime is now the default unless you actively elect the Old one.

Does this calculator include surcharge?

No. It models slab tax and the 4% cess for salary income. A surcharge applies only to very high incomes (above ₹50 lakh) and is not included here, so treat results above that level as an approximation.

How is the 4% cess applied in the comparison?

The 4% health & education cess is levied on the slab tax after the §87A rebate under each regime, not on your income. The calculator adds it to both the Old and New figures, so you are comparing like-for-like totals.

I have no deductions — do I even need to compare?

With zero deductions the New regime almost always wins, because you keep its lower rates while the Old regime has nothing extra to offset its higher slabs. Set deductions to ₹0 in the calculator to confirm the gap for your salary.

Methodology & sources

How the Old vs New Tax Regime Calculator is calculated, and where the underlying rules come from.

How we calculate it

Every result is produced by a single, shared and tested financial-formula library used across the whole site — so the maths is consistent from one calculator to the next. Figures are estimates based on the inputs you enter and standard assumptions (such as regular compounding and constant rates); real-world outcomes vary with taxes, fees and changing rates. All calculations run in your browser — nothing you type is stored or sent to a server.

Sources & references

Editorial policy & disclaimer. FinCalcHub provides free educational tools and estimates — not personalised financial, tax or investment advice. Verify important decisions with a qualified professional. Read our editorial approach, disclaimer and privacy policy.

Last reviewed for accuracy on 27 July 2026.

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