Tax guide
Old vs New Tax Regime (FY 2025-26): which saves you more?
Since Budget 2025, the new tax regime is the default — and for most salaried Indians it is now the cheaper option. But if you claim big deductions, the old regime can still win. Here is the honest comparison.
The slabs, side by side
| Income slab | New regime | Old regime |
|---|---|---|
| Up to ₹2.5L | Nil | Nil |
| ₹2.5L – ₹4L | Nil | 5% |
| ₹4L – ₹5L | 5% | 5% |
| ₹5L – ₹8L | 5% | 20% |
| ₹8L – ₹10L | 10% | 20% |
| ₹10L – ₹12L | 10% | 30% |
| ₹12L – ₹16L | 15% | 30% |
| ₹16L – ₹20L | 20% | 30% |
| ₹20L – ₹24L | 25% | 30% |
| Above ₹24L | 30% | 30% |
Standard deduction: ₹75,000 (new) vs ₹50,000 (old). Section 87A rebate makes tax nil up to ₹12 lakh taxable income in the new regime, versus ₹5 lakh in the old.
When the NEW regime wins
Choose it if you have few deductions, rent-free accommodation, or income under ~₹12 lakh (where you pay zero tax). It is simpler and needs no investment proofs.
When the OLD regime wins
Choose it if your deductions are large — full ₹1.5 lakh under 80C, ₹25,000–50,000 under 80D, significant HRA, and especially home-loan interest (up to ₹2 lakh). Stack enough and your taxable income drops far below the new-regime figure.
Enter your income and see both regimes compared instantly.
Open the Income Tax Calculator →Frequently asked
Rates as of FY 2025-26. Estimates for planning, not tax advice — confirm with a tax professional.