Old vs New Tax Regime Calculator FY 2025-26 — Free

Every salaried taxpayer runs into this question at least once a year: old regime or new? Pick wrong and it can genuinely cost you money you didn't need to lose. This calculator works out your tax under both regimes for FY 2025-26, applies the Section 87A rebate and 4% cess automatically, and tells you flat out which one comes out cheaper.

There's no sign-up and nothing gets saved anywhere. You put in your income and deductions, and within seconds you get a side-by-side breakdown, useful groundwork before you sit down to file your ITR.

The Rupee Difference, In Real Numbers

Numbers make this a lot less abstract. Here's how the gap plays out at a few income levels:

Notice how the direction flips depending on income and deductions. There's no single "better" regime here, only a better regime for your specific numbers.

What It Does and Doesn't Do

It does:

• Compares tax liability under old vs new regimes, side by side
• Works out exact tax payable with the Section 87A rebate applied
• Adds the 4% Health and Education Cess automatically
• Shows how deductions (80C, 80D, home loan interest) shift the result
• Tells you which regime saves you more
• Runs entirely in your browser, so nothing about your finances leaves your device

It doesn't:

• Issue an official income tax assessment or notice
• Calculate your HRA exemption or LTA benefit (if you don't receive HRA and pay rent instead, the Section 80GG rent deduction calculator is built for that scenario)
• Account for the senior citizen additional deduction
• Handle business income or capital gains
• Act as any kind of government verification service
• Replace a proper conversation with a Chartered Accountant

Use it to get an informed starting point before you file, then have your CA confirm the final call, especially if your income sits close to the rebate threshold.

Tax Slabs for FY 2025-26

Old Tax Regime

New Tax Regime (Enhanced Rates)

How the Calculator Works

You feed it five inputs:

1. Annual gross salary
2. Section 80C deductions
3. Section 80D (health insurance)
4. Home loan interest under Section 24(b)
5. Other deductions

And it hands back:

• Your tax under the old regime
• Your tax under the new regime
• A side-by-side comparison of the two
• A straight recommendation on which one to pick
• A detailed breakdown of how each figure was reached

Example Scenarios

• ₹12 lakh income, minimal deductions. This is where most new-regime wins happen.
• ₹20 lakh, high deductions (investor profile). Heavy 80C and home loan claims start tipping things back toward the old regime.
• ₹8 lakh, moderate deductions. Often lands at zero tax under the new regime thanks to 87A.
• ₹50 lakh, multiple deductions (high income). This is where the old regime's advantage tends to be largest in absolute rupee terms.

Old vs New, In Plain Terms

Honestly, most people just guess on this one, and it shows. The new regime hands you lower rates but takes away deductions like 80C, 80D, and home loan interest. The old regime lets you claim all of that, but the slab rates bite harder. So the right answer isn't a rule of thumb, it's your actual numbers.

That's what the calculator above is for. Put in your income and deductions, and you'll see your tax under both regimes side by side, no guesswork required before you file.

If you want more fields and a fuller breakdown, there's also a free old vs new tax regime calculator for FY 2025-26 on Toolisky.

Privacy and Your Data

Everything runs in your browser. Nothing about your finances touches a server.

• Client-side processing. Every calculation happens locally, no data gets sent anywhere.
• No data storage. We don't save, collect, or log your income or deduction figures.
• No tracking. No cookies, no analytics pixels, nothing watching you use the tool.
• No account needed. Use it anonymously, no sign-up required.
• No sharing. Your numbers never go to third parties, banks, or government bodies.
• HTTPS encryption. The site runs on secure HTTPS throughout.

Because everything stays on your device, your financial information genuinely never leaves your computer.

Sources We Relied On

This calculator is built on official government sources and current tax authority guidance for FY 2025-26:

• Income Tax Department, Government of India
• Union Budget 2025
• Central Board of Direct Taxes (CBDT)
• Income Tax Act, 1961, Sections 87A and 87
• Income Tax Rules, 2024

Important Disclaimer

An Educational Tool, Not an Official Assessment

This tool compares regimes; it isn't an official income tax department assessment, government verification, or a binding calculation of what you owe. Treat the numbers as an estimate built on standard assumptions for FY 2025-26.

It Can't Replace a CA

No calculator replaces an actual Chartered Accountant. When it comes to ITR filing, your final regime choice, or anything more complicated, you need someone who can look at your complete financial picture.

Built on Standard Assumptions

A few assumptions sit under every result here: salaried income only, the standard deductions specified, standard Section 87A rebate limits, and a flat 4% cess. Got business income, senior citizen status, or NRI status? The numbers may not hold up for you.

What's Left Out

HRA exemption, LTA benefit, the senior citizen additional deduction (₹50,000), investment-linked exemptions, and various other specialised deductions don't factor in here. Want the complete picture? That's a conversation for your CA.

Tax Rules Move Fast

Every budget and notification can shift income tax rules. We update this calculator when that happens, but there's always a chance a recent change hasn't been reflected yet. Cross-check current rules on the official Income Tax Department website (incometax.gov.in) before you file.

We Can't Guarantee Perfect Accuracy

Different situations get interpreted differently under tax law, so we can't promise every calculation is a perfect fit for yours. Verify with your CA before acting on these numbers.

No Liability for Errors or Losses

Using this calculator is at your own risk. We're not responsible for errors, inaccuracies, or the tax consequences of decisions made from it, independent verification matters here.

Not Legal or Tax Advice

None of this is legal, tax, or financial advice, it's informational content. For advice you can rely on, that's a Chartered Accountant, tax lawyer, or financial advisor's job.

Before you file your ITR or lock in your regime choice: run your exact numbers through this calculator, get a CA to review your complete financial situation, double-check current rules on incometax.gov.in, and keep your investment proofs ready if you're going with the old regime. The official Finance Bill sits on the India Budget portal if you want to check anything at the source. Get the regime wrong and you're stuck with the higher tax for that financial year, it's worth the extra ten minutes to get it right.

Frequently Asked Questions

What's the actual difference between old and new tax regime in FY 2025-26?

It comes down to deductions and rates. The old regime lets you claim Section 80C (up to ₹1.5L), 80D for health insurance, Section 24(b) for home loan interest (up to ₹2L), and more, plus a ₹50,000 standard deduction. The new regime gives you only a ₹75,000 standard deduction but applies lower rates across more brackets. There's also a big gap in the Section 87A rebate threshold: zero tax up to ₹5L taxable income in the old regime, versus zero tax up to ₹12L in the new one. Which wins depends entirely on your own deductions.

Can income up to ₹12 lakh really be tax-free in FY 2025-26?

Yes, but only under the new regime. The enhanced Section 87A rebate zeroes out your tax if taxable income (after the ₹75,000 standard deduction) comes to ₹12 lakh or less. So a gross salary up to ₹12.75 lakh can end up paying nothing. This applies to resident Indians with salary income only, and the old regime's rebate threshold stays at ₹5 lakh.

Can I switch regimes every year?

Yes. Salaried individuals can pick either regime each financial year when filing their ITR, you're not locked in for life. One thing that trips people up: the regime you declare to your employer at the start of the year for TDS purposes isn't final, you can still choose differently when you actually file. Once you've filed a return under a chosen regime for a given year, though, that choice is fixed for that year, you can only change it going forward. Business owners have a tighter rule (they can switch back to the old regime from the new one only once), but salaried employees keep full flexibility every year.

Which deductions disappear under the new regime?

The new regime drops Section 80C (PPF, ELSS, LIC, tuition fees, home loan principal, capped at ₹1.5L), Section 80D (health insurance premiums), Section 24(b) (home loan interest, capped at ₹2L), Section 80E (education loan interest), Section 80G (donations), and most other Chapter VI-A deductions. The only deduction that survives is the ₹75,000 standard deduction for salaried individuals. One notable exception: NPS employer contribution under Section 80CCD(2) is still allowed in the new regime.

How does the math actually work for a ₹15 lakh salary?

Old regime (assuming ₹3L in deductions): Taxable income = ₹15L − ₹50K − ₹3L = ₹11.5L. Tax = ₹12,500 + ₹1,00,000 + ₹45,000 = ₹1,57,500. Add 4% cess (₹6,300) and you land at ₹1,63,800.

New regime: Taxable income = ₹15L − ₹75K = ₹14.25L. Tax = ₹20,000 + ₹40,000 + ₹40,000 + ₹33,750 = ₹1,33,750. Add 4% cess (₹5,350) for a total of ₹1,39,100.

At ₹15L with ₹3L in deductions, the new regime saves roughly ₹24,700. Push the deductions higher and the old regime starts closing that gap.

How much can I claim under Section 80C in the old regime?

Up to ₹1,50,000 per financial year, and that's a combined cap across everything eligible: PPF, ELSS mutual funds, LIC premiums, home loan principal repayment, tuition fees, and 5-year tax-saving FDs. Even if your actual investments add up to more, ₹1.5L is the ceiling, and it's only available in the old regime.

What exactly is the 4% Health and Education Cess?

It's a 4% surcharge on your computed tax, not on your income. So if your tax after all slabs and rebates works out to ₹1,00,000, the cess adds ₹4,000, bringing total payable to ₹1,04,000. It applies equally to both regimes. And if your tax comes to zero because of the 87A rebate, the cess is zero too.

Can I use this if I have business income or capital gains?

This calculator is built for salaried employees with salary as the only income source. If you've got business income, freelance income, rental income, or capital gains from stocks or mutual funds, the calculation gets a lot more complicated. For those, a CA is your best bet, or check our capital gains tax calculator for equity and mutual fund gains, our rent income tax calculator, or the professional income tax calculator for freelancers.