What is the default tax regime for FY 2025-26?

The New Tax Regime is the default regime from FY 2023-24 onwards. If you do not explicitly choose the Old Regime, your employer will deduct TDS based on the New Regime slabs. Salaried employees can switch between regimes every year at the time of filing their ITR.

Can I switch between Old and New regime every year?

Yes, salaried employees can choose between the Old and New regime each financial year at the time of filing their Income Tax Return. However, individuals with business income can only switch once in their lifetime.

What deductions are available under the New Regime?

The New Regime allows very limited deductions. The standard deduction of Rs. 75,000, employer contribution to NPS under Section 80CCD(2), and deduction for family pension are the key deductions available. Most other deductions like 80C, 80D, HRA, and LTA are not available.

At what income level does the New Regime become better?

Generally, if your total deductions under the Old Regime are less than approximately Rs. 3,75,000 to Rs. 4,00,000, the New Regime may result in lower tax. The exact breakeven point depends on your income level and the specific deductions you claim. Use our comparator tool to find the exact answer for your situation.

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Old vs New Tax Regime Comparator FY 2025-26

Enter your income and deductions to compare tax under Old and New regimes side-by-side. Clear verdict with exact savings for FY 2025-26.

Instant resultsData stays in browserFY 2025-26 rules

What it does

Compares old and new regime tax side by side

Who it is for

Salaried employees choosing a tax regime for the year

What you get

Tax amounts under both regimes and a clear verdict

How to use this tool

Enter annual gross salary

Your total salary before any deductions — can be CTC or actual annual salary

Add your deductions (optional)

HRA exemption, 80C, health insurance, home loan interest, NPS — all optional

Get the side-by-side verdict

Both regimes compared with exact rupee savings and a slab-wise breakdown

What you'll need

Keep these details ready before you start.

This keeps the flow quick on mobile and desktop, and helps you finish the form in one pass.

6 details to keep handy

Annual gross salary (or CTC)

HRA exemption — use the HRA Calculator above

Section 80C investments (EPF, PPF, ELSS, LIC)

Health insurance premium (Section 80D)

Home loan interest (Section 24b)

Additional NPS contribution (Section 80CCD 1B)

Annual Gross Salary*

₹

Total annual salary before any deductions

HRA Exemption (Annual)

₹

Exempt HRA under Sec 10(13A)

Section 80C

₹

EPF, PPF, ELSS, LIC, etc. Max 1,50,000

Section 80D (Health Insurance)

₹

Max 25,000 (below 60) / 50,000 (60+)

Home Loan Interest (Sec 24b)

₹

Self-occupied property. Max 2,00,000

NPS — 80CCD(1B)

₹

Additional NPS deduction. Max 50,000

Other Chapter VI-A Deductions

₹

80E (education loan), 80G (donations), etc.

How this tool helps

Side-by-side comparison

Both regimes shown simultaneously with all deductions, tax, cess, and rebates visible — nothing hidden.

Slab-wise tax breakdown

See how much tax falls in each income slab under both regimes, not just the total number.

Instant clear verdict

The better regime is highlighted with the exact rupee savings, so there's no ambiguity about which one to choose.

About this tool

Understand where it fits into your salary workflow.

Enter your income and deductions to compare tax under Old and New regimes side-by-side. Clear verdict with exact savings for FY 2025-26.

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Current rulesBuilt for FY 2025-26

The Indian income tax system offers two tax regimes: the Old Regime with higher tax rates but multiple deductions and exemptions, and the New Regime (default from FY 2023-24) with lower slab rates but almost no deductions except the standard deduction of Rs. 75,000.

For FY 2025-26, the New Regime offers tax slabs starting with a nil tax rate up to Rs. 4,00,000, then 5% up to Rs. 8,00,000, 10% up to Rs. 12,00,000, 15% up to Rs. 16,00,000, 20% up to Rs. 20,00,000, 25% up to Rs. 24,00,000, and 30% above Rs. 24,00,000. A full rebate under Section 87A makes income up to Rs. 12,00,000 effectively tax-free.

The Old Regime retains the familiar slabs: nil up to Rs. 2,50,000, 5% up to Rs. 5,00,000, 20% up to Rs. 10,00,000, and 30% above Rs. 10,00,000. You can claim deductions like Section 80C (up to Rs. 1,50,000), Section 80D (health insurance), HRA exemption, LTA, and more.

Which is better? It depends on your total deductions. If your deductions exceed roughly Rs. 3,75,000, the Old Regime may save more tax. Our comparator shows both calculations side-by-side with a clear verdict, so you can make an informed choice before the financial year ends.