WealthJot.ai
WealthJot.ai
🏛️ Income Tax Calculator
Old vs New regime comparison for FY 2025-26 with all deductions. New regime: zero tax up to ₹12L income.

Income Tax: new regime tax is ₹97,500, based on the entered inputs.

Formula

Tax = Σ (income in each slab × that slab's rate), applied across the applicable tax slabs, less eligible deductions and rebates

Worked example
InputValue
Gross Annual Salary / Income₹15,00,000
Section 80C Investments₹1,50,000
HRA Exemption Claimed₹1,20,000
80CCD(1B) — NPS₹50,000
Other Deductions (80D, 80E etc.)₹25,000
New Regime Tax₹97,500
Old Regime Tax₹1,49,760
Better Regime1
Tax Savings (Best vs Worst)₹52,260
New Regime Effective Rate6.5%
Old Regime Effective Rate9.98%
Old Regime Taxable Income₹11,05,000

Old regime vs new regime — what the calculator compares

India effectively runs two parallel income-tax systems. The new regime (the default) offers lower slab rates and a big rebate — zero tax up to ₹12 lakh of income (₹12.75 lakh for salaried, after the ₹75,000 standard deductionA flat deduction salaried taxpayers get automatically.) — but almost no deductions. The old regime keeps higher rates but lets you subtract 80CA tax deduction of up to ₹1.5 lakh for set investments. (₹1.5 lakh), HRA, home-loan interest, NPS and more. The calculator computes your tax under both and names the winner.

The break-even logic is simple: the old regime wins only if your total deductions are large enough to offset its higher rates. As a rough guide, a salaried person needs roughly ₹4-4.5 lakh of genuine deductions (80CA tax deduction of up to ₹1.5 lakh for set investments. + HRA + home-loan interest + NPS) before the old regime starts winning at higher incomes — and below ~₹12.75 lakh of salary income the new regime’s rebate is nearly unbeatable. Don’t guess: enter your actual numbers, because the answer flips per person and per year.
ExampleSalary ₹15 lakh, no rent, no home loanA long-term secured loan to buy property., ₹1.5 lakh in 80CA tax deduction of up to ₹1.5 lakh for set investments.: new regime wins comfortably — the old regime’s extra deductions don’t cover its steeper slabs. Same salary with ₹2.4 lakh HRA exemption, full 80CA tax deduction of up to ₹1.5 lakh for set investments., ₹50,000 NPS and ₹2 lakh home-loan interest: the old regime pulls ahead by tens of thousands. DeductionAn amount subtracted from income before tax.-heavy lives favour old; simple salaried lives favour new.
Common mistakeMaking tax-saving investments (ELSS, 5-year FDs, extra insurance) while on the new regime, where 80CA tax deduction of up to ₹1.5 lakh for set investments. gives you nothing. Check which regime you’re actually filing under before every March ritual — and if the new regime wins for you, invest on merit, not for a deductionAn amount subtracted from income before tax. you can’t claim.
✓ You learnedRun both regimes with your real numbers every year — the winner depends on your deductions, not on rules of thumb. New regime: simpler, zero tax to ₹12L (₹12.75L salaried). Old regime: only worth it when 80CA tax deduction of up to ₹1.5 lakh for set investments. + HRA + home-loan interest genuinely stack up.
FAQs
Which tax regime is better?

There is no universal answer — it hinges on your deductions. Below ~₹12.75 lakh salaried income the new regime’s rebate usually wins outright. Above that, the old regime wins only if your combined deductions (80C, HRA, home-loan interest, NPS) are large — typically ₹4 lakh+. Compute both (this calculator does) and pick per year; salaried filers can switch regimes each year.

Can I switch between regimes every year?

Salaried taxpayers can choose either regime each financial year at filing time (and can tell their employer separately for TDS). Those with business income can switch out of the new regime essentially once, with restrictions on returning. If your deductions vary year to year — a home loan ends, rent stops — re-run the comparison annually.