Old vs New Tax Regime Simulator

Old vs New Tax Regime · INDwallet (2026)

📋 Old vs New Tax · 2026

FY 2025‑26 (AY 2026‑27) · Compare your tax liability under both regimes

💰 Gross income
₹12.5L
🏛️ Old tax
₹1.2L
🆕 New tax
₹1.0L
🏆 Better
New

New Tax Regime Slabs (FY 2025‑26)

Income range (₹)Tax rate
0 – 4,00,000Nil
4,00,001 – 8,00,0005%
8,00,001 – 12,00,00010%
12,00,001 – 16,00,00015%
16,00,001 – 20,00,00020%
20,00,001 – 24,00,00025%
Above 24,00,00030%
* Standard deduction of ₹75,000 already applied. Rebate under Section 87A available for income up to ₹12,00,000 (after standard deduction).
📉 Your income & deductions
Annual salary (₹)12,00,000
Other income (₹)50,000
80C deductions (₹)1,50,000
80D (health) (₹)25,000
NPS 80CCD(1B) (₹)50,000
HRA exemption (₹)0
Home loan interest (₹)0
Other deductions (₹)0
New regime wins
🏛️ Old regime tax₹1,20,000
🆕 New regime tax₹1,00,000
📊 Difference-₹20,000
📉 Taxable income (old)₹10,00,000
💡 Insight: New regime saves you ₹20,000. Your deductions are moderate.
📊 Tax comparison

🏛️ old (gold) · 🆕 new (blue)

⚡ Gold bar: old regime · 🔵 Blue bar: new regime
📈 Tax at different incomes

🏛️ old (gold) · 🆕 new (blue) · 0.5x to 1.5x your income

📘 Your tax scenario (2026)

  • Gross income: ₹12,50,000 (salary ₹12L + other ₹50k).
  • Old regime deductions: ₹2,25,000 (80C ₹1.5L, 80D ₹25k, NPS ₹50k).
  • Taxable (old): ₹10,25,000 → tax ₹1,20,000.
  • New regime (std ded ₹75k): taxable ₹11,75,000 → tax ₹1,00,000.
  • Winner: New regime saves ₹20,000.
  • 💡 Takeaway: With moderate deductions, new regime is better.

📋 Best practices · 2026

  • New regime is default: With ₹4L nil slab and ₹75k standard deduction, income up to ₹12.75L can be tax-free (after rebate).
  • Old regime still works if you have high deductions: 80C, 80D, HRA, home loan interest. Aim for deductions > ₹3.5‑4L to beat new regime.
  • HRA just got bigger: Bengaluru, Pune, Hyderabad, Ahmedabad now qualify for 50% HRA (vs 40% earlier).
  • NPS extra deduction: Under 80CCD(1B), you can claim up to ₹50,000 over 80C.
  • Tax‑gain harvesting: Book LTCG up to ₹1.25L tax‑free each year.
  • EEE investments: PPF (7.1%), EPF (8.25%), SSY (8.2%) remain attractive in old regime.
  • Surcharge: Above ₹50L, new regime caps surcharge at 25% vs 37% in old – big saving for high earners.

Frequently asked questions

Live answers based on your sliders · 2026
🏛️ Regime basics
Based on your inputs, new regime saves you ₹20,000. Your old regime tax is ₹1.2L, new regime tax is ₹1.0L.
Your gross income ₹12.5L minus deductions ₹2.25L = ₹10.25L.
💰 Deductions & exemptions
You’ve set HRA at ₹0. If you live in a metro (incl. BLR, PUN, HYD, AMD), you can claim up to 50% of salary.
NPS under 80CCD(1B) gives an extra deduction of ₹50,000 over 80C, saving up to ₹15,600 tax.
🆕 New regime details
₹75,000 for FY 2025‑26. Your taxable income after std ded is ₹11.75L.
No, only standard deduction is allowed. All other deductions (80C, 80D, HRA, etc.) are not available.
📈 Advanced planning
In new regime, if taxable income ≤ ₹12L, you get a rebate of up to ₹60,000, making tax nil. Your taxable income is ₹11.75L – you may be eligible for partial rebate.
Above ₹50L, new regime surcharge is 25% vs old regime 37%. For high incomes, this favours new regime.

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