One question, two answers
The choice between regimes is not about which has lower headline rates. The new regime has wider slabs and a bigger standard deduction; the old regime lets you subtract 80C, 80D, home loan interest and HRA first. Which wins depends entirely on how much you actually claim.
New regime slabs
| Taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Standard deduction for salaried taxpayers is ₹75,000. A full rebate under section 87A means no tax at all up to ₹12,00,000 of taxable income — which, with the standard deduction, is ₹12,75,000 of salary.
Old regime slabs
| Taxable income | Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Standard deduction is ₹50,000, with the 87A rebate applying up to ₹5,00,000 of taxable income.
These slabs reflect FY 2025-26. Rates change at Budget. Confirm the current year's position before filing.
Worked example
₹15,00,000 salary, new regime
- Gross salary
- ₹15,00,000
- Less standard deduction
- − ₹75,000
- Taxable income
- ₹14,25,000
- Tax before cess
- ₹93,750
- Total with 4% cess
- ₹97,500
Which regime suits you
- The new regime usually wins if your deductions are modest — no home loan, limited 80C, no HRA claim.
- The old regime can win if you claim a large HRA in a metro, are paying substantial home loan interest, and use the full 80C and 80D limits.
- The crossover point rises with income. Run both before choosing rather than following a rule of thumb.
What this calculator does not cover
It handles salary and ordinary income with slab rates, cess and surcharge. It does not model capital gains, marginal relief at surcharge boundaries, business income with presumptive taxation, or clubbing provisions. For anything beyond a straightforward salary, treat the result as an estimate and take professional advice.
Frequently asked questions
Which regime is better?
It depends on your deductions. With few deductions the new regime is usually cheaper. With a large HRA claim and home loan interest, the old regime often wins. This calculator runs both.
Is income up to ₹12 lakh really tax-free?
Under the new regime, a full rebate under section 87A means no tax up to ₹12,00,000 of taxable income. With the ₹75,000 standard deduction, that covers ₹12,75,000 of salary.
Can I switch regimes each year?
Salaried taxpayers without business income can generally choose each year. Those with business income face restrictions on switching back.
Does this include capital gains?
No. Capital gains are taxed at special rates and are not modelled here.