Old vs New Tax Regime
FY 2025-26 (AY 2026-27) · see which regime gives you a lower tax.
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How the two regimes differ
New regime (default): lower tax rates and a ₹75,000 standard deduction, but almost no other deductions. Income up to ₹12 lakh taxable is effectively tax-free thanks to the section 87A rebate.
Old regime: higher tax rates, but you can claim deductions such as 80C (up to ₹1.5 lakh), 80D, HRA, and home loan interest. A ₹50,000 standard deduction applies to salaried people, and the 87A rebate makes taxable income up to ₹5 lakh tax-free.
Slabs used
| New regime | |
| 0 – 4L / 4–8L / 8–12L | 0% / 5% / 10% |
| 12–16L / 16–20L / 20–24L / 24L+ | 15% / 20% / 25% / 30% |
| Old regime | |
| 0 – 2.5L / 2.5–5L | 0% / 5% |
| 5–10L / 10L+ | 20% / 30% |
Both include the 4% Health & Education Cess. This is a simplified comparison — your actual eligible deductions depend on your situation. See our disclaimer.