Old vs new regime
Income Tax Calculator.
See exactly which tax regime saves you more for FY 2025-26, based on your real income and deductions — not a generic rule of thumb. Free, instant, no signup.
Income tax
Old regime vs new regime
FY 2025-26 (AY 2026-27) slabs, post Budget 2025. Age group only affects the old regime — new regime slabs are the same for everyone. Doesn't include surcharge (relevant above ₹50L income) or marginal relief just above the ₹12L new-regime rebate threshold — for exact filing figures, use the official income tax e-filing portal or a CA.
Side by side
New regime — taxable income
Fully rebated under Section 87A
Old regime — taxable income
Tax: ₹1,17,000 (incl. 4% cess)
New regime tax payable
Old regime tax payable
What changed in Budget 2025
The new regime became meaningfully more attractive from FY 2025-26: the Section 87A rebate threshold rose to ₹12 lakh (up from ₹7 lakh), and the standard deduction for salaried individuals under the new regime is ₹75,000 versus ₹50,000 under the old regime. Combined, a salaried person can earn up to ₹12.75 lakh and pay zero tax under the new regime — which is why it's now the default option, and why many people who previously preferred the old regime should recheck the math.
Frequently asked questions
Which income tax regime should I choose?
If you don't have significant deductions to claim (no home loan, minimal 80C investments, no HRA), the new regime almost always wins — it has lower slab rates and a higher rebate threshold (tax-free up to ₹12 lakh). If you have substantial deductions — a home loan, full 80C investments, HRA, health insurance — the old regime can still come out ahead. Enter your actual numbers above rather than assuming either is automatically better.
Can I switch between the old and new tax regime every year?
If you're salaried with no business income, yes — you can choose either regime each financial year when filing your return, regardless of what you chose the previous year. If you have business or professional income, switching back to the old regime after opting for the new one has restrictions, so check with a CA if that applies to you.
What is the Section 87A rebate?
It's a rebate that makes your tax liability zero if your taxable income falls below a threshold — ₹12 lakh under the new regime (rebate up to ₹60,000) and ₹5 lakh under the old regime (rebate up to ₹12,500), for FY 2025-26. It applies after all deductions, so your gross income can be higher than these thresholds and you can still owe zero tax once deductions bring taxable income under the limit.
Is the standard deduction available in both tax regimes?
Yes, but the amounts differ — ₹75,000 under the new regime and ₹50,000 under the old regime, for salaried individuals and pensioners for FY 2025-26. This is one of the reasons the new regime's effective tax-free threshold is higher than the headline slab suggests.