Old vs New Tax Regime Calculator

Enter your annual taxable income after all deductions you plan to claim. For the Old Regime, this means gross income minus standard deduction (₹75,000 for salaried from FY 2024-25), minus 80C investments (up to ₹1.5L), minus HRA, 80D, home loan interest, and any other applicable deductions. For the New Regime, taxable income is gross minus ₹75,000 standard deduction and employer NPS contribution only. Since deductions differ, the "taxable income" is technically different for each regime - entering one common figure gives a useful directional comparison; for an exact figure, calculate separately for each regime.

It depends on the total value of your eligible deductions under the Old Regime. If you have significant 80C investments (₹1.5L), health insurance (₹25–50K under 80D), HRA exemption, NPS 80CCD(1B) (₹50K), and home loan interest (up to ₹2L), your total deductions could easily exceed ₹3.75–₹4.5L - at which point the Old Regime often produces lower tax. If you have few investments or don't own a house, the New Regime's lower slab rates and wider zero-tax band (up to ₹7L with 87A) typically produce less tax. Use this calculator with your actual post-deduction taxable income under each scenario to see the exact rupee difference.

Salaried employees (no business income) can switch regimes every financial year when filing their ITR - you're not locked in. Business owners and freelancers who have previously opted into the Old Regime can switch to the New Regime only once, and if they switch back to Old Regime again, they cannot return to New Regime. From FY 2023-24, the New Regime is the default - you must actively opt out to the Old Regime each year if you want it.

Yes. The calculator automatically applies the correct Section 87A rebate for each regime. For the Old Regime, if your taxable income is ₹5,00,000 or less, the entire tax liability is rebated to zero. For the New Regime, the rebate applies if your taxable income is ₹7,00,000 or less - making the effective tax-free limit ₹7 lakhs under the new regime. Both totals shown already include the rebate where applicable.

Yes. Both the Old Regime and New Regime tax figures shown include the 4% Health and Education Cess levied on income tax. The cess applies to all taxpayers - there is no exemption threshold. The calculator adds cess on top of the slab tax (after rebate where applicable) before showing the final total tax payable for each regime.

The key deductions permitted under the New Regime are: Standard deduction of ₹75,000 (for salaried employees from FY 2024-25), employer's contribution to NPS under Section 80CCD(2) (up to 10% of salary, or 14% for central government employees), contribution to Agniveer Corpus Fund under Section 80CCH, enhanced standard deduction for family pension (₹25,000). Most other common deductions - 80C (ELSS, PPF, LIC), 80D (health insurance), HRA, LTA, home loan interest - are not available in the New Regime.

No - this calculator focuses on the slab tax comparison for incomes up to ₹50 lakhs where surcharge does not apply. For incomes above ₹50 lakhs where surcharge becomes relevant (10% to 25% of tax under New Regime; up to 37% under Old Regime), use the dedicated Income Tax Calculator which includes full surcharge computation with marginal relief.

No. All calculations run entirely in your browser using JavaScript. No data is sent to any server, stored in any database, or shared with any third party. Your income figure exists only in your browser tab and disappears when you navigate away or close the tab.