Old vs New Tax – Find your regime winner
Adjust sliders for salary, 80C, 80D, HRA, NPS and home loan interest — the winner updates instantly in real time, modelled on FY 2025–26 slabs. 100% private, no data stored.
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Run your tax regime comparison
Move any slider to see instant results. Eight income and deduction variables plus FY 2025–26 slab logic determine the winner — all computed locally in your browser.
- FY 2025–26 New & Old slabs, 4% cess, 87A rebate
- Tax comparison + sensitivity chart across income levels
- Every slider updates the narrative and FAQ values live
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. Track actuals in the Income Wallet.
See the number? Now act on it: track income → · track deductible expenses →
How the regime comparison works
Two tax systems, eight variables, one winning regime. The calculator applies FY 2025–26 slab rates, standard deductions, and the Section 87A rebate to compute the final tax.
- Old regime: Taxable income = Gross − 80C − 80D − NPS 80CCD(1B) − HRA − home loan interest 24b − other deductions − standard deduction ₹50,000. Tax slabs: 5% above ₹2.5L, 20% above ₹5L, 30% above ₹10L. 4% cess added.
- New regime: Taxable income = Gross − standard deduction ₹75,000. No other deductions. Tax slabs: nil to ₹4L, then 5% to ₹8L, 10% to ₹12L, 15% to ₹16L, 20% to ₹20L, 25% to ₹24L, 30% above. 4% cess added. Section 87A rebate up to ₹60,000 if taxable ≤ ₹12L.
- New regime is the default from FY 2023–24: You must actively opt for the old regime when filing if it saves you more. Salaried can switch annually; business income cannot switch back once opted out.
- When old regime wins: Typically when total deductions exceed ₹3.5–4L — heavy 80C, home loan, HRA, NPS, and 80D. High earners above ₹5Cr may also prefer old regime for surcharge planning. Model in the Expenses Wallet.
New Tax Regime Slabs (FY 2025–26)
| Income range (₹) | Tax rate |
|---|---|
| 0 – 4,00,000 | Nil |
| 4,00,001 – 8,00,000 | 5% |
| 8,00,001 – 12,00,000 | 10% |
| 12,00,001 – 16,00,000 | 15% |
| 16,00,001 – 20,00,000 | 20% |
| 20,00,001 – 24,00,000 | 25% |
| Above 24,00,000 | 30% |
How Kavya & Rohit chose their regime
Two common Indian tax profiles — one benefits from heavy deductions, one benefits from the new regime’s simplicity. Both run this calculator at the start of every financial year.
- Kavya (₹18L salary, Bengaluru): Maxes 80C (₹1.5L ELSS+PPF), 80D (₹25K family health), NPS ₹50K, HRA ₹2.4L, home loan interest ₹2L. Total deductions ≈ ₹6.65L. Her old regime tax is significantly lower — the calculator makes this obvious in seconds.
- Rohit (₹18L salary, Mumbai, no home loan): Only 80C ₹1.5L and 80D ₹25K. Standard deduction ₹50K. Total deductions ₹2.25L. For him, the new regime with its ₹75K standard deduction and lower slab rates wins by a comfortable margin.
- The ₹4L tipping point: Both learned from this calculator that around ₹4L of total deductions is the rough crossover point — below it, new regime usually wins; above it, old regime wins.
- Section 87A surprise: Rohit’s colleague with ₹12.5L taxable income was shocked to learn that new regime income up to ₹12.75L is effectively tax-free after the ₹60K rebate — the calculator surfaces this instantly.
- Surcharge at high income: Their senior VP at ₹2Cr was advised to stay in the new regime — surcharge capped at 25% vs 37% in old regime, saving crores over the years.
- Annual switch discipline: Both re-run this calculator at the start of every FY. A new home loan or marriage can flip the winner dramatically. Track the full picture in the Wealth Wallet.
- Freelancers check twice: Business income cannot switch back to new regime once opted out — Kavya’s husband, a consultant, uses the Freelancer vs Salary Simulator alongside this one.
Tax planning best practices for FY 2025–26
Seven rules that turn the calculator output into real tax savings. Each links to a wallet or calculator so you can act immediately.
- New regime is default — check old regime annually
- Old regime wins above ~₹3.5–4L deductions
- Section 87A gives up to ₹60K rebate in new regime
- New regime is default from FY 2023–24: With ₹4L nil slab and ₹75K standard deduction, income up to ₹12.75L can be effectively tax-free after 87A rebate.
- Old regime wins with high deductions: Aim for total deductions above ₹3.5–4L to beat the new regime. Use the Expenses Wallet to track all deductible expenses.
- HRA just got bigger: Bengaluru, Pune, Hyderabad, and Ahmedabad now qualify for 50% HRA (was 40%). Calculate your exact claim with the Rent vs Buy Simulator.
- NPS gives extra deduction: Under 80CCD(1B), claim up to ₹50,000 over and above 80C — saving up to ₹15,600 in tax. Track your investments in the Investment Wallet.
- LTCG harvesting: Book long-term capital gains up to ₹1.25L per year tax-free. Anything above is taxed at 12.5%.
- Surcharge advantage: Above ₹50L, new regime surcharge is capped at 25% vs 37% in old regime — a major advantage for high earners.
- Freelancers and business owners: Can deduct legitimate business expenses before tax under old regime. See the Freelancer vs Salary Simulator.
Tax & income articles
Six India-first guides covering what shows up most in our inbox — regime decision, 80C instruments, HRA calculation, NPS benefit, freelancer tax, and savings-rate planning.
- Six focused guides
- Covers every calculator assumption in depth
- All at INDwallet blog
Old vs New Tax Regime India 2026: Complete Decision Guide
When to switch, when to stay — the definitive breakdown.
Read → 80C DeductionsSection 80C Deductions India 2026: All 15 Investments Explained
Maximise your ₹1.5L 80C limit with the right instruments.
Read → HRAHRA Exemption India 2026: How to Calculate and Claim It
New metro cities, 50% rule, and exact formula.
Read → NPSNPS Tax Benefit India: Is the Extra ₹50,000 Worth It?
80CCD(1B) — the most overlooked deduction for salaried Indians.
Read → Freelance TaxFreelancer Tax Guide India (FY 2025–26): Complete Breakdown
Advance tax, GST, deductions — everything in one place.
Read → Savings RateWhat Percentage of Salary Should You Save in India in 2026?
The number that actually matters for financial freedom.
Read →Compare here. Track everywhere.
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Frequently asked questions
Which regime saves me more?
What is my taxable income under old regime?
Is income up to ₹12 lakh tax-free in new regime?
How much HRA can I claim?
What is the benefit of NPS 80CCD(1B)?
Can I claim 80C in the new regime?
What is the rebate under Section 87A?
How does surcharge apply in new vs old?
How often should I review which regime to use?
💡 Run the numbers in real context
- After this comparison → track actual income sources in the Income Wallet
- Track deductible expenses → use the Expenses Wallet
- Compare freelance vs salary tax → Freelancer vs Salary Simulator
- Build your emergency fund → Emergency Fund Calculator
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