Salary-Tools.

Old vs New Tax Regime Calculator

See your exact tax liability under both regimes, side by side, based on your actual deductions — not a rule of thumb.

All deduction fields only affect the old regime — the new regime doesn't allow any of these except the standard deduction, which is already built into both calculations.

100%take-home

Better choice for you

New regime

Saves ₹1,11,800/year

Old regime
Taxable income₹9,75,000
Total tax₹1,11,800
New regime
Taxable income₹11,25,000
Total tax₹0

Tax under both regimes, across income levels

Using your current deductions (₹1,75,000/year total) held constant.

Old regimeNew regime

Why the 'better' regime depends on your deductions, not just your income

The new regime offers lower tax rates but allows almost no deductions. The old regime has higher rates but lets you reduce taxable income through 80C, 80D, HRA, and home loan interest. Whether the old regime wins depends entirely on how large your total deductions are relative to your income:

Old regime wins when: total deductions are large enough that the tax saved exceeds what the new regime's lower rates already save you

As a rough pattern: someone with minimal deductions (no HRA, no 80C investments, no home loan) almost always does better on the new regime. Someone with a home loan, full 80C utilization, and HRA exemption often breaks even around ₹15-20L income, sometimes favoring the old regime above that — but there's no universal number, which is exactly why calculating your specific numbers matters more than a rule of thumb.

Frequently asked questions

The new tax regime is the default regime for salaried individuals since FY 2023-24. If you want the old regime, you need to explicitly opt for it, typically by informing your employer at the start of the financial year.