About this tool
The new regime has lower rates but few deductions; the old regime has higher rates but allows 80C, 80D, HRA and home loan interest. The break-even depends on how much you can actually claim.
Choosing the regime that saves you more
The choice between the two regimes comes down to one question: are your deductions large enough to outweigh the lower rates of the new regime? The new regime offers wider slabs, a higher rebate and a larger standard deduction, but almost no other deductions. The old regime keeps 80C, 80D, HRA, home loan interest and more, at the cost of higher rates. This calculator works out both and shows the difference in rupees.
For many salaried people the answer has shifted towards the new regime. Take a salary of ₹15 lakh. Under the new regime, tax with cess is about ₹97,500. Under the old regime, even with ₹5 lakh of deductions, tax comes to roughly ₹1.07 lakh. At that income, the old regime wins only if your deductions are larger still, which usually means a big home loan, high rent claimed as HRA, and full use of 80C, 80D and NPS together.
Be honest about what you can actually claim. Count only investments and payments you would make anyway, not ones you would start just to save tax, because a deduction that costs you ₹1 lakh to save ₹30,000 is not a gain. Salaried people can usually pick a regime every year, so revisit the comparison each April when your salary, rent or loan changes. If you have business income, switching is more restricted, so check the rules before you decide. Tell your employer your choice early in the year so that monthly TDS matches your final tax and you avoid a large bill or a long wait for a refund.
How to use it
- Enter your numbers in the boxes, or drag the sliders.
- Read the result on the right. It updates as you type.
- Compare it with your payslip or Form 16, and adjust deductions to match.
- Use 'Copy link with these values' to save the calculation or send it to someone.
Questions
Who should choose the old regime?
Usually people with large deductions, such as a home loan (interest up to ₹2 lakh), full 80C, health insurance under 80D and a big HRA exemption. Enter your numbers to check.
Can I switch regimes every year?
Salaried people without business income can choose each year when filing the return. People with business income can switch back to the old regime only once.
Last reviewed 16 October 2026. Results are estimates for planning. Check important figures with your bank, employer or a qualified adviser.