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Old vs New Tax Regime

Compare tax liability under both regimes for FY 2025-26

Quick Answer — Old vs New Tax Regime

The Old vs New Tax Regime is a free online financial tool that helps you compare tax liability under both regimes for fy 2025-26. Enter your values above for instant, accurate results — no signup required. All calculations run privately in your browser.

Standard Formula Updated 2026
₹
₹
₹
₹1,50,000
₹10,000₹2,00,00,000
₹
₹
₹
₹2,00,000
₹10,000₹2,00,00,000
Methodology
Free forever Data stays on your device Works offline (PWA) Verified formulas

Maintained by: Sagar Sahni, Calc Labz  |  Review: formula checks, worked examples, and periodic updates

Use with care: Finance and tax outputs are planning estimates only and should be checked against current rules.

Need a correction? Contact us with the calculator name and the issue you found.

Formula & Worked Example

The math behind the Old vs New Tax Regime

Mathematical Formula

Savings = Tax_{Old} - Tax_{New}
The comparison evaluates: - **Old Regime**: Higher slab rates but allows deductions (80C, 80D, HRA, NPS, Home Loan Interest) - **New Regime**: Lower slab rates, standard deduction of ₹75K, minimal other deductions - The regime with the lower tax liability is recommended.

Step-by-Step Worked Example

For income **₹12 LPA** with ₹1.5L in 80C, ₹25K in 80D, and ₹1.2L HRA: - **Old Regime Tax** ≈ ₹1,11,800 (after all deductions) - **New Regime Tax** ≈ ₹83,200 (with ₹75K standard deduction only) - **Verdict**: New Regime saves ~₹28,600 → **New Regime is better**

Frequently Asked Questions

Common questions about the Old vs New Tax Regime

Which tax regime should I choose — Old or New?
The New Regime is better if you have few deductions/exemptions. The Old Regime is better if you claim significant deductions (80C, 80D, HRA, home loan interest) totaling more than ~₹3.75 Lakh. Use our calculator to compare your specific scenario.
Can I switch between Old and New Regime every year?
Salaried employees can switch between Old and New Regime every financial year. Business/professional income earners who opt out of the New Regime can switch back only once. The New Regime is the default — you need to explicitly opt for the Old Regime.
What deductions should I consider before choosing?
Key deductions in Old Regime: 80C (₹1.5L — PPF, ELSS, EPF, LIC), 80D (₹25K-₹1L health insurance), HRA exemption, Home Loan Interest 24(b) (₹2L), NPS 80CCD(1B) (₹50K), Education Loan interest. If these total >₹3.75L, Old Regime may save more tax.
Is HRA exemption available in the New Regime?
No. HRA exemption under Section 10(13A) is not available in the New Tax Regime. If you pay high rent and receive HRA, this is a significant factor favoring the Old Regime.
How much tax do I save by investing in NPS?
NPS offers up to ₹2 Lakh in deductions: ₹1.5L under 80CCD(1) within the 80C limit, plus an additional ₹50K under 80CCD(1B). Employer NPS contributions under 80CCD(2) are available in BOTH regimes (up to 14% of salary for government, 10% for others).

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What is the Old vs New Tax Regime?

The Old vs New Tax Regime Comparator helps Indian taxpayers choose the most beneficial tax regime for FY 2025-26. Enter your income and all deductions (80C, 80D, HRA, NPS, home loan interest) to see which regime saves you more tax. The new regime offers lower rates but fewer deductions, while the old regime rewards tax planning.

How to Use the Old vs New Tax Regime

  1. Enter Gross Annual Income: Enter your gross annual income in Indian Rupees (₹) in the input field. The calculator will validate your input automatically.
  2. Enter HRA Exemption: Enter your hra exemption in Indian Rupees (₹) in the input field. The calculator will validate your input automatically.
  3. Enter 80C Investments (max ₹1.5L): Enter your 80c investments (max ₹1.5l) in Indian Rupees (₹) in the input field. The calculator will validate your input automatically.
  4. Enter NPS (80CCD(1B), max ₹50K): Enter your nps (80ccd(1b), max ₹50k) in Indian Rupees (₹) in the input field. The calculator will validate your input automatically.
  5. Enter Medical Insurance 80D: Enter your medical insurance 80d in Indian Rupees (₹) in the input field. The calculator will validate your input automatically.
  6. Enter Home Loan Interest (24B): Enter your home loan interest (24b) in Indian Rupees (₹) in the input field. The calculator will validate your input automatically.
  7. View Your Results: The Old vs New Tax Regime displays your results instantly in the output panel. You will see the primary result along with a detailed breakdown of secondary outputs. Scroll down for charts, interpretations, and expert advice.

Key Features

  • Instant Old vs New Tax Regime calculations with real-time updates
  • No signup, no registration — 100% free forever
  • All calculations happen in your browser — zero data sent to servers
  • Works offline as a Progressive Web App (PWA)
  • Mobile-friendly responsive design
  • Verified financial formulas updated for 2026

Why Use Calc Labz Old vs New Tax Regime?

The Calc Labz Old vs New Tax Regime stands out because it combines accuracy with simplicity. Unlike other online calculators, we provide detailed breakdowns, step-by-step formulas, and actionable advice alongside your results. Our financial calculators are regularly updated to reflect current rates, rules, and standards for India (2026). Whether you are a student, professional, or just need a quick calculation — Calc Labz delivers reliable results instantly.

Key Terms & Glossary

Principal
The original amount of money borrowed or invested, before any interest is applied.
Interest Rate
The percentage charged on borrowed money or earned on invested money, usually expressed per annum.
Compound Interest
Interest calculated on both the initial principal and previously accumulated interest — "interest on interest."
Amortization
The process of spreading loan repayment into equal installments over a fixed period.
Maturity
The date on which a financial instrument (FD, bond, PPF) reaches its full term and the principal is returned.
CAGR
Compound Annual Growth Rate — the smoothed annual rate of return on an investment over a specified period.

Sources & References

Our Old vs New Tax Regime uses formulas and guidelines from the following authoritative sources:

  • Income Tax Department
  • Section 115BAC — New Tax Regime