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Old vs New Tax Regime Calculator

Compare tax under India's old and new regimes using your real income, 80C, HRA and other deductions.

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💡 Expert Tips

1

The new regime has lower rates but almost no deductions — the old regime has higher rates but rewards 80C, HRA and other claims.

2

Re-check every year — if your deductions (especially HRA or a new home loan) change significantly, the better regime can flip.

3

You can choose a different regime each year if you have no business income — salaried employees aren't locked in.

How to read your result

The "better" regime isn't fixed — it's a function of your deductions, and those change year to year (a new home loan, a lapsed insurance policy, a move to a no-HRA remote job). Re-run this calculator whenever your deduction picture changes materially, not just once when you first decide.

⚠️ Common Mistakes

Assuming the new regime is always better because rates are lower.

Lower rates only help if you have few deductions to lose. Someone with a home loan, HRA, and full 80C usage can still come out ahead under the old regime despite its higher headline rates — run the actual numbers.

Forgetting that 80C has a ₹1.5L cap regardless of how much you actually invest.

PPF + ELSS + EPF + life insurance premiums all share the same ₹1.5L combined limit under the old regime — investing ₹2L across these still only gets you ₹1.5L of deduction.

Not re-evaluating after a life change (new home loan, job change, marriage).

Any of these can shift your deduction total enough to flip which regime wins. Treat this as an annual check, not a one-time decision.

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Frequently Asked

Which tax regime is better?

It depends entirely on how much you can deduct. Roughly speaking, if your total 80C + HRA + other deductions exceed about ₹3.5-4L, the old regime usually wins; below that, the new regime's lower rates tend to win. This calculator gives your exact answer.

Can I switch between old and new regime every year?

Yes, if you're a salaried employee with no business income, you can choose either regime each financial year when filing your return.

Is the new regime the default now?

Yes — since FY 2023-24, the new regime is the default. You must actively opt for the old regime if you want to use it.

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PPF and EPF are both fully tax-free (EEE) — the safest, most tax-efficient core of a conservative portfolio.

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