Old vs New Tax Regime Calculator
Enter your salary and deductions to see the tax under both regimes, which one is lower, and how many deductions you need for the old regime to win. Runs in your browser; nothing is uploaded.
Only the old regime uses these. Use the HRA calculator to work out the HRA exemption.
Tax as your deductions grow
The new regime line stays flat because it ignores these deductions. Where the old regime line falls below it, the old regime is better.
A worked example
Say your salary is Rs 15,00,000 a year, with Rs 2,00,000 of HRA exemption, Rs 1,50,000 under Section 80C and Rs 25,000 under Section 80D, so Rs 3,75,000 of deductions in total under the old regime. The new regime ignores all of that but uses lower slab rates, and comes to Rs 97,500 in tax. The old regime, after those deductions bring taxable income down to about Rs 10,75,000, comes to Rs 1,40,400. Here the new regime wins by Rs 42,900, even with genuine deductions on the table, which is the point of comparing both rather than assuming deductions always favour the old regime.
Understanding the calculation
- New regime
- Salary less Rs 75,000, plus other income, taxed at 0% to Rs 4 lakh, then 5%, 10%, 15%, 20%, 25% and 30% in Rs 4 lakh steps above it. The rebate makes tax nil up to Rs 12 lakh.
- Old regime
- Salary less Rs 50,000 and your exemptions and deductions, taxed at 0% to Rs 2.5 lakh, 5% to Rs 5 lakh, 20% to Rs 10 lakh and 30% above.
- Deductions needed
- The smallest total of exemptions and deductions, on top of the standard deduction, at which the old regime tax is no higher than the new regime tax.
Common questions
How does this decide which regime is better?
It works out your tax twice, once under the new regime with its lower slab rates and Rs 75,000 standard deduction, and once under the old regime with your exemptions and deductions, and shows the lower one. It also shows the total deductions you would need for the old regime to win.
Which deductions does the old regime allow here?
This page uses the Rs 50,000 standard deduction, the HRA exemption you enter, Section 80C up to Rs 1.5 lakh, Section 80D as entered, Section 80CCD(1B) NPS up to Rs 50,000, home loan interest on a self-occupied house up to Rs 2 lakh, and one field for any other deduction. The new regime allows almost none of these.
What is the Section 87A rebate?
It removes the tax for lower incomes. Under the new regime the rebate is up to Rs 60,000 when taxable income is up to Rs 12 lakh, with marginal relief just above that. Under the old regime it is up to Rs 12,500 when taxable income is up to Rs 5 lakh.
Can salaried people switch every year?
Salaried individuals can choose between the regimes each year when they file. People with business or professional income, such as F&O traders, have much tighter rules about switching back once they leave the new regime, so check before you choose.
Does this include capital gains, F&O or crypto income?
No. This page compares the regimes for salary and other slab-rate income. For trading and investing income together, use the Trader Tax Estimator.
What is left out?
Surcharge above Rs 50 lakh, senior citizen slabs, employer NPS under Section 80CCD(2) and other less common items. It assumes a resident individual under 60.