Tax Regime Comparison
Old vs New Tax Regime Which is Better?
Compare old and new tax regimes with current slab rates. Understand the differences in tax slabs, deductions, and find out which regime saves you more tax.
Tax Slabs Comparison
| Income Slab | Old Regime | New Regime |
|---|---|---|
| Up to ₹2,50,000 | Nil | Nil |
| ₹2,50,001 - ₹4,00,000 | 5% | Nil |
| ₹4,00,001 - ₹5,00,000 | 5% | 5% |
| ₹5,00,001 - ₹8,00,000 | 20% | 5% |
| ₹8,00,001 - ₹10,00,000 | 20% | 10% |
| ₹10,00,001 - ₹12,00,000 | 30% | 10% |
| ₹12,00,001 - ₹16,00,000 | 30% | 15% |
| ₹16,00,001 - ₹20,00,000 | 30% | 20% |
| ₹20,00,001 - ₹24,00,000 | 30% | 25% |
| Above ₹24,00,000 | 30% | 30% |
Cess: 4% on tax (both)Rebate 87A: Old up to ₹5L, New up to ₹12L
Deductions Availability
Old Regime Advantages
- 80C / Section 123: Save ₹1.5L on PPF, ELSS, Insurance
- 80D / Section 126: Health insurance deduction
- HRA exemption for renters
- Home loan interest deduction
- LTA for travel allowance
New Regime Advantages
- Lower tax rates across slabs
- Zero tax up to ~₹12.75L (with rebate + standard deduction)
- Standard deduction of ₹75,000
- Simpler - no need to track deductions
- Good for those with minimal investments
Example: ₹12 Lakh Income
Old Regime
- Gross Income₹12,00,000
- Standard Deduction-₹50,000
- 80C / 123 (PPF, Insurance)-₹1,50,000
- 80D / 126 (Health Insurance)-₹25,000
- HRA-₹1,00,000
- Taxable Income₹8,75,000
- Tax Payable₹91,000
New Regime
- Gross Income₹12,00,000
- Standard Deduction-₹75,000
- No other deductions-₹0
- Taxable Income₹11,25,000
- Tax Payable₹0 (rebate)
In this case: the new regime saves the full ₹91,000, since taxable income of ₹11.25L falls under the ₹12L Section 87A rebate threshold. This is why the new regime now wins for most taxpayers up to roughly ₹15-16L income - the old regime only pulls ahead once your genuine deductions (80C/123, 80D/126, HRA, home loan interest) are large relative to your income. Run your own numbers with the calculator below rather than relying on a single example.
Frequently Asked Questions
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Calculate Which Regime is Better for You
Use our income tax calculator to compare both regimes with your actual income and deductions.