Income Tax Calculator — Old vs New Regime Comparison (FY 2025-26)
Key Takeaways
Compare income tax under old and new regime with side-by-side calculation. Our free calculator shows which regime saves you more based on your income and deductions. Includes visual charts and breakeven analysis.
Quick Answer
Find which tax regime saves you more:
- Visit tohundguide.com/tools/income-tax-calculator
- Enter your income and deductions
- See side-by-side old vs new regime comparison with savings
Free instant calculation with personalized recommendation.
Old vs New Tax Regime — Which is Better?
The biggest tax decision every salaried employee and business owner faces: Which income tax regime should I choose? Our calculator answers this instantly by comparing your tax liability under both regimes side-by-side.
New Tax Regime Rates (FY 2025-26 / AY 2026-27)
| Income Slab | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹7,00,000 | 5% |
| ₹7,00,001 – ₹10,00,000 | 10% |
| ₹10,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Old Tax Regime Rates (FY 2025-26 / AY 2026-27)
| Income Slab | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
💡 Key Insight: The new regime has lower rates but no deductions (except standard deduction of ₹75,000). If your total deductions under old regime exceed ₹3.75 lakhs, the old regime might save you more!
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What Our Calculator Shows
- ✅ Side-by-side comparison — tax under both regimes
- ✅ Personalized recommendation — which regime saves you more
- ✅ Breakeven analysis — at what deduction level to switch regimes
- ✅ Visual charts — see the tax burden clearly
- ✅ Cess calculation — 4% education cess included
- ✅ Rebate calculation — Section 87A rebate applied automatically
Who Should Use Old Regime?
The old regime is better if you have significant deductions:
- Home loan (Section 24 — up to ₹2 lakh interest deduction)
- PPF / ELSS / Insurance (Section 80C — up to ₹1.5 lakh)
- NPS (Section 80CCD — additional ₹50,000)
- Health Insurance (Section 80D — up to ₹75,000 for family + parents)
- HRA (for those paying rent in metros)
Who Should Use New Regime?
The new regime is better if:
- You have few or no deductions
- You're a young professional without home loans
- Your income is below ₹12 lakhs (eligible for full rebate under new regime)
- You prefer simplicity over tax planning
Frequently Asked Questions
Can I switch between old and new regime every year?
Salaried employees: Yes, you can switch between old and new regime every financial year. Business/profession income: Once you choose old regime, you can switch to new only once.
Is the new regime default?
Yes, from FY 2023-24, the new tax regime is the default. You need to explicitly opt for the old regime if you want deductions.
What deductions are available under new regime?
Very few: Standard deduction of ₹75,000 (salaried), NPS employer contribution (Section 80CCD(2)), and deduction for family pension. Most other deductions like 80C, 80D, HRA are NOT available.
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Convert Your Statement Now →🔒Your information is secure and will never be shared.
Frequently Asked Questions
Which is better — old or new tax regime for FY 2025-26?
It depends on your deductions. If deductions exceed ₹3.75 lakhs, old regime is better. Use our free calculator at tohundguide.com/tools/income-tax-calculator for a personalized recommendation.
Can I switch between old and new tax regime?
Salaried employees can switch every year. Business/profession income holders can switch to new regime only once. The new regime is the default from FY 2023-24.
What is the standard deduction under new regime 2026?
The standard deduction under the new regime is ₹75,000 for FY 2025-26 (AY 2026-27). This was increased from ₹50,000 in the July 2024 budget.
Disclaimer
This article is for educational purposes only and does not constitute professional legal, tax, or financial advice. The information provided is based on public sources and may change over time. We are not responsible for any actions taken based on this content. Please consult a qualified professional for specific advice related to your situation.
Tax slabs verified against Finance Act 2024 amendments. Last updated March 2026.