Calculators Taxes

Income Tax Calculator: Compare Old vs New Tax Regimes (India FY 2025-26)

Karen Johnson

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September 27, 2026

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2 mins read

Annual Gross Income (CTC / Salary):

Deductions under Old Regime (80C, 80D, HRA):

Regime Comparison & Recommendation

New Tax Regime

₹ 67,600

Old Tax Regime

₹ 117,000

💡 Suggestion: New Tax Regime saves you ₹ 49,400!

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Choosing between the New Tax Regime and the Old Tax Regime can significantly impact your annual take-home salary. Our free Income Tax Calculator enables salaried individuals and professionals to compare their exact tax liability under both tax systems and receive an instant recommendation on the best option.

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⚖️ Key Differences: Old vs New Tax Regime

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The New Tax Regime features lower slab rates with an enhanced standard deduction of ₹ 75,000 and full tax rebate for taxable incomes up to ₹ 7,00,000 (Section 87A). However, it does not allow traditional chapter VI-A deductions.

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The Old Tax Regime allows substantial tax exemptions such as:

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Section 80C: Up to ₹ 1.5 Lakhs (EPF, PPF, ELSS, Life Insurance, Home Loan Principal)
Section 80D: Health Insurance premiums for self and parents (₹ 25,000 to ₹ 50,000)
House Rent Allowance (HRA): Under Section 10(13A)
Home Loan Interest: Up to ₹ 2 Lakhs under Section 24(b)

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💡 How to Pick the Best Regime

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If your total annual deductions exceed ₹ 3.75 Lakhs to ₹ 4 Lakhs, the Old Tax Regime may save you more money. If your deductions are under ₹ 2.5 Lakhs to ₹ 3 Lakhs, the New Tax Regime is almost always more advantageous and involves zero paperwork.

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Quick Guide

How to Use Income Tax Calculator: Compare Old vs New Tax Regimes (India FY 2025-26) in 3-4 Simple Steps

Enter Gross Income

Input your annual CTC or gross taxable salary before deductions.

Add Eligible Deductions

Input eligible Section 80C investments, health insurance (80D), and HRA exemptions.

Compare Tax Regimes

Examine the side-by-side breakdown of tax liability between the Old and New tax regimes.

Choose the Lowest Tax Option

Select the tax regime that delivers the maximum tax savings for your income bracket.

Need Help?

Frequently Asked Questions

Everything you need to know about this tool, accuracy, formulas, and privacy.

Which tax regime is better: Old or New?

The New Tax Regime offers lower tax slab rates but disallows most exemptions (like 80C, 80D, and HRA). If your total deductions exceed ₹3.75 Lakhs, the Old Regime is generally more beneficial; otherwise, the New Regime often yields higher savings.

What is the standard deduction in the New Tax Regime?

Under Budget updates, salaried individuals receive an enhanced Standard Deduction of ₹75,000 under the New Tax Regime and ₹50,000 under the Old Regime.

Is income up to ₹7 Lakhs tax-free in India?

Yes, under Section 87A rebate in the New Tax Regime, resident individuals with taxable income up to ₹7 Lakhs pay zero net income tax.

Karen Johnson

Senior Systems Architect & Technical Writer at 99tools. Specializing in WebAssembly, browser performance, networking diagnostics, and privacy-first web utilities.