New vs Old Tax Regime 2026: Which is Better for You?
Budget 2025 made the New Regime even more attractive. Here is the complete comparison with latest slabs, deductions, rebate rules, breakeven points and an interactive calculator.
Not sure which regime saves you more?
Enter your income and deductions below. Our calculator instantly shows tax under both regimes.
Includes 80C, 80D, HRA, Home Loan Interest etc.
New Regime saves you ₹1,59,900 🎉
New Tax Regime Slabs FY 2025-26
| Income Slab | Tax Rate |
|---|---|
| ₹0 – ₹4 Lakh | Nil |
| ₹4 Lakh – ₹8 Lakh | 5% |
| ₹8 Lakh – ₹12 Lakh | 10% |
| ₹12 Lakh – ₹16 Lakh | 15% |
| ₹16 Lakh – ₹20 Lakh | 20% |
| ₹20 Lakh – ₹24 Lakh | 25% |
| Above ₹24 Lakh | 30% |
✅ Effectively zero tax up to ~₹12.75 Lakh gross salary for salaried individuals
Deductions Available Only in Old Regime
Max ₹1.5 Lakh
- EPF, PPF, ELSS
- Life Insurance
- Home Loan Principal
Max ₹25k – ₹1 Lakh
- Health Insurance (Self & Family)
- Parents (Higher limit for seniors)
Significant Savings
- HRA Exemption (Rent paid)
- Home Loan Interest (Sec 24b) – up to ₹2 Lakh
Breakeven Analysis: When to Switch?
You should choose Old Regime only if your total deductions exceed:
₹4.5 – 5 Lakhs
This includes 80C + HRA + Home Loan Interest + 80D + NPS etc. For most people, the New Regime is simpler and saves more tax.
Real-Life Examples
Deductions: ₹1.5 Lakh (80C only)
Winner: New Regime (Saves ₹52,500)
Deductions: ₹4.8 Lakh (HRA + 80C + Home Loan Interest)
Winner: Old Regime (Saves ₹34,400)
Final Verdict
For most salaried individuals earning up to ₹15–18 Lakhs, the New Tax Regime is the clear winner — simpler and saves more tax. Only switch to the Old Regime if you can genuinely claim deductions of ₹4.5 Lakh or more.
Calculate Your Exact Tax Now