Old vs New Tax Regime Calculator
Compare income tax under India's old and new regimes for FY 2024-25. Enter income and deductions to see tax under each, the 87A rebate, 4% cess and the better choice.
Updated 2026-06-14 · Free · No sign-up · Runs privately in your browser
Old-regime deductions = 80C, 80D, HRA, home-loan interest, NPS etc. (the standard deduction is added automatically and should not be included here).
Show the formula & steps
Estimate for FY 2024-25 (AY 2025-26), resident individual below 60, before surcharge. Verify with a tax professional or the Income Tax portal.
How the Old vs New Tax Regime Calculator Works
Since FY 2023-24 the new tax regime is the default in India, but you can still opt for the old regime if your deductions make it cheaper. The trade-off is simple: the old regime has higher rates but rewards deductions, while the new regime has lower rates and wider slabs but disallows most deductions.
This calculator does the comparison for FY 2024-25 (AY 2025-26). Enter your gross annual income, your old-regime deductions (80C, 80D, HRA, home-loan interest and so on), and whether you are salaried. It returns the tax under each regime and tells you which one saves more.
The Formula
For each regime, tax is computed on income after the applicable standard deduction (and, in the old regime, your other deductions):
Tax = slab tax on taxable income − Section 87A rebate, then × 1.04 for 4% cess
The slabs differ between regimes, as does the rebate threshold (₹7 lakh new, ₹5 lakh old) and the standard deduction (₹75,000 new, ₹50,000 old, for salaried taxpayers).
Worked Example
Take a salaried person with ₹12,00,000 gross income and ₹1,50,000 of old-regime deductions:
- Old regime: taxable = 12,00,000 − 50,000 standard − 1,50,000 = ₹10,00,000. Slab tax = 5% × 2.5L + 20% × 5L = ₹1,12,500. With 4% cess = ₹1,17,000.
- New regime: taxable = 12,00,000 − 75,000 standard = ₹11,25,000. Slab tax = 5% × 4L + 10% × 3L + 15% × 1.25L = ₹68,750. With 4% cess = ₹71,500.
Here the new regime wins by ₹45,500, because the deductions are not large enough to overcome its wider, lower slabs.
Slab Comparison (FY 2024-25)
| Taxable income | Old regime | New regime |
|---|---|---|
| Up to ₹2.5 lakh | Nil | Nil (to ₹3 lakh) |
| ₹2.5–5 lakh | 5% | 5% (₹3–7 lakh) |
| ₹5–10 lakh | 20% | 10% (₹7–10 lakh) |
| ₹10–12 lakh | 30% | 15% |
| ₹12–15 lakh | 30% | 20% |
| Above ₹15 lakh | 30% | 30% |
When Each Regime Wins
The old regime tends to win when your deductions are large, for example a full ₹1.5 lakh under 80C, health insurance under 80D, significant HRA, and home-loan interest. The new regime usually wins when you claim few deductions, thanks to its higher standard deduction and gentler slabs. This is an estimate for a resident individual below 60 and excludes surcharge; always confirm with a tax professional or the official Income Tax portal.
Frequently asked questions
What is the difference between the old and new tax regime?+
The old regime has higher tax rates but lets you claim deductions such as 80C, 80D, HRA and home-loan interest. The new regime, the default from FY 2023-24, has wider slabs and lower rates but allows almost no deductions, apart from the standard deduction. This tool computes tax under both so you can compare.
What are the new regime slabs for FY 2024-25?+
For FY 2024-25 the new regime taxes income at 0% up to ₹3 lakh, 5% from ₹3 to ₹7 lakh, 10% from ₹7 to ₹10 lakh, 15% from ₹10 to ₹12 lakh, 20% from ₹12 to ₹15 lakh, and 30% above ₹15 lakh, with a ₹75,000 standard deduction for salaried taxpayers.
What is the Section 87A rebate?+
Section 87A gives a rebate that can make tax zero for lower incomes. Under the new regime for FY 2024-25, tax is fully rebated if taxable income is up to ₹7 lakh (rebate up to ₹25,000). Under the old regime, it applies up to ₹5 lakh (rebate up to ₹12,500).
Which tax regime is better for me?+
It depends on your deductions. If you claim large 80C, 80D, HRA and home-loan deductions, the old regime can win. If you claim few deductions, the new regime's wider slabs and higher standard deduction usually result in lower tax. Enter your numbers to see which costs less for you.
Does this include cess and surcharge?+
It adds the 4% health and education cess on the tax after rebate, which applies in both regimes. It does not apply surcharge, which kicks in at high incomes above ₹50 lakh. The estimate is for a resident individual below 60 for FY 2024-25; confirm with a tax professional.