Old vs New Tax Regime Calculator
Compare tax under both regimes on the same salary, and see how much more deduction the old regime would need to catch up. For most salaried people without a home loan, the new regime wins.
Free · No sign-up · Nothing leaves your browser · Figures reviewed 22 September 2026
Your details
Only changes the old regime, where the basic exemption rises with age.
Mumbai, Kolkata, Delhi and Chennai only.
The new regime is cheaper
₹30,420
You save ₹30,420 a year by choosing the new regime — ₹2,535 a month.
- New regime tax · 43%
- Old regime tax · 57%
New regime — the default
- Taxable income
- ₹14,25,000
- Tax before rebate
- ₹93,750
- Rebate
- ₹0
- Total tax
- ₹97,500
Allows the ₹75,000 standard deduction and employer NPS. Nothing else from salary.
Old regime
- HRA exemption
- ₹2,40,000
- Chapter VI-A deductions
- ₹1,75,000
- Taxable income
- ₹10,35,000
- Tax before rebate
- ₹1,23,000
- Rebate
- ₹0
- Total tax
- ₹1,27,920
Allows HRA, chapter VI-A deductions and home-loan interest, against a ₹50,000 standard deduction and lower slab thresholds.
What the old regime would need
- Additional deductions to break even
- ₹1,30,000
Deductions you do not already have. If reaching this figure means locking money away you would not otherwise commit, the saving is smaller than it looks.
The new regime is the default. A salaried person opts out in the return of income, not by telling their employer, and can change the choice every year.
The declaration you give payroll drives your TDS but does not bind you at filing. If the other regime turns out better, you claim the difference in your return.
This is an estimate for planning, not tax advice. It uses the FY 2026-27 rates and assumes a standard salary structure — your actual liability depends on your full income, declarations and proofs.
The question is not which regime has lower rates — it is whether your deductions are worth more than the difference. The new regime gives a larger standard deduction and wider slabs; the old regime gives HRA, investments, health insurance and home-loan interest against narrower ones.
Fill in what you actually claim, not what you could theoretically claim. The break-even figure at the bottom tells you how much more you would have to lock away for the old regime to win — and it is usually more than people expect.
Who each regime suits
The old regime tends to win where there is a home loan running at close to the ₹2 lakh interest cap, substantial rent in a metro against a high HRA component, and the full ₹1.5 lakh of investments already committed for other reasons.
The new regime tends to win for everyone else — younger employees without a housing loan, anyone living rent-free or with family, and anyone who would only invest to save tax.
The choice is annual and not binding on your employer's figure
The new regime is the default. A salaried person without business income opts out in the return of income, and can change the choice each year.
So the declaration you give payroll determines your monthly TDS, not your final liability. If you declare the new regime and the old turns out better, you claim the difference as a refund at filing — and vice versa, you pay the shortfall.
Frequently asked questions
- Which tax regime is better for a ₹15 lakh salary?
- It depends entirely on deductions. With no HRA claim, no home loan and no investments, the new regime is clearly cheaper. With full HRA in a metro, the ₹1.5 lakh of investments and ₹2 lakh of home-loan interest, the old regime usually wins. Fill in your own numbers above.
- How much deduction do I need for the old regime to be better?
- Broadly, deductions and exemptions of roughly ₹4 lakh to ₹5 lakh a year for a mid-range salary — and the exact figure is shown in the comparison above as the additional amount needed to break even.
- Can I change tax regime every year?
- Yes, if you are salaried and have no business income. The choice is made in the return of income. Someone with business income has a much more restricted ability to switch back.
- Is HRA allowed in the new tax regime?
- No. HRA, LTA, section 123 investments, health insurance and own NPS are all unavailable in the new regime. The standard deduction and employer NPS are the two that survive.
About this tool
Built by the ViniOffice team. Figures and rules last reviewed 22 September 2026 against the statutory reference this team maintains. Indian statutory rates are date-effective and change by notification — confirm against the current one before running payroll or filing. This is an estimate for planning, not tax advice. It uses the FY 2026-27 rates and assumes a standard salary structure — your actual liability depends on your full income, declarations and proofs.
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