Old vs New Tax Regime 2026
Compare both tax regimes side by side and find which one saves you more tax
Recommendation:
Choose New Regime - saves ₹9,308
Income Details
15 Lakh
30 Thousand
Deductions (Old Regime Only)
1 Lakh
PPF, ELSS, LIC, Tuition fees, etc.
25 Thousand
Self + Family + Parents
50 Thousand
Additional ₹50,000 for NPS
Max ₹2L for self-occupied
Interest on education loan
10 Thousand
Max ₹10,000
Detailed Tax Comparison
| Component | Old Regime | New Regime |
|---|---|---|
| Gross Income | ₹15,00,000 | ₹15,00,000 |
| Standard Deduction | ₹50,000 | ₹75,000 |
| HRA Exemption | ₹3,00,000 | ₹0 (Not Allowed) |
| EPF (Employee) | ₹72,000 | ₹72,000 |
| Section 80C | ₹1,50,000 | ₹0 (Not Allowed) |
| Section 80D | ₹25,000 | ₹0 (Not Allowed) |
| NPS 80CCD(1B) | ₹50,000 | ₹0 (Not Allowed) |
| Home Loan Interest | ₹0 | ₹0 (Not Allowed) |
| Other Deductions | ₹10,000 | ₹0 (Not Allowed) |
| Taxable Income | ₹8,43,000 | ₹12,81,000 |
| Tax Before Rebate | ₹81,100 | ₹72,150 |
| Rebate u/s 87A | ₹0 | ₹0 |
| Tax After Rebate | ₹81,100 | ₹72,150 |
| Health & Education Cess (4%) | ₹3,244 | ₹2,886 |
| Total Tax Payable | ₹84,344 | ₹75,036 |
| Effective Tax Rate | 5.9% | 5.3% |
New Tax Regime saves you more
You save ₹9,308 per year
Break-even Analysis
To make Old Regime worthwhile at your income level, you need total deductions of at least:
₹6.52L
Your current total deductions (excluding standard deduction): ₹4.85L
You need ₹1.67L more in deductions to benefit from Old Regime.
Old Regime Tax Slabs
| Income Slab | Tax Rate |
|---|---|
| ₹0 - ₹2,50,000 | 0% |
| ₹2,50,000 - ₹5,00,000 | 5% |
| ₹5,00,000 - ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Standard Deduction: ₹50,000 | Rebate limit: ₹5,00,000
New Regime Tax Slabs
| Income Slab | Tax Rate |
|---|---|
| ₹0 - ₹4,00,000 | 0% |
| ₹4,00,000 - ₹8,00,000 | 5% |
| ₹8,00,000 - ₹12,00,000 | 10% |
| ₹12,00,000 - ₹16,00,000 | 15% |
| ₹16,00,000 - ₹20,00,000 | 20% |
| ₹20,00,000 - ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Standard Deduction: ₹75,000 | Rebate limit: ₹12,00,000
Frequently Asked Questions
Which regime should I choose?
If you have significant deductions (HRA, 80C, 80D, home loan, etc.) totaling more than the break-even amount shown above, Old Regime may be better. Otherwise, New Regime's lower rates and higher standard deduction usually work out better.
Can I switch between regimes every year?
Salaried employees can switch between regimes every year. However, business owners with business income can only switch once in their lifetime if they opt for Old Regime.
What is the default regime?
From FY 2023-24 onwards, New Tax Regime is the default. You need to specifically opt for Old Regime if you want to use it, either through your employer or while filing your ITR.