Old vs New Tax Regime FY 2025-26
Detailed comparison of old vs new income tax regime for FY 2025-26. Find which regime is better based on your deductions, salary, and tax-saving inves
Quick Comparison Table
| Feature | New Regime | Old Regime |
|---|
| Tax Slabs | 7 slabs (0% to 30%) | 4 slabs (0% to 30%) |
| Standard Deduction | ₹75,000 | ₹50,000 |
| Section 80C | Not allowed | Up to ₹1.5 lakh |
| Section 80D | Not allowed | Up to ₹1 lakh |
| HRA Exemption | Not allowed | Allowed |
| Home Loan Interest | Not allowed | Up to ₹2 lakh |
| NPS 80CCD(1B) | Not allowed | Up to ₹50,000 |
| 87A Rebate | Up to ₹12L taxable | Up to ₹5L taxable |
| Default Regime | Yes (default) | Must opt-in |
When is New Regime Better?
- You have minimal or no tax-saving investments
- You don't get HRA or live in your own house
- Your total deductions are less than ₹3-4 lakh
- Your salary is up to ₹12.75 lakh (zero tax under new regime)
- You want simplicity without tracking investments
When is Old Regime Better?
- You have HRA exemption of ₹2+ lakh per year
- You fully utilize 80C (₹1.5 lakh) and 80D
- You have a home loan with interest deduction (₹2 lakh)
- You contribute to NPS for the extra ₹50,000 deduction
- Your total deductions exceed ₹4-5 lakh
Tax Comparison at Different Income Levels
| Gross Salary | New Regime Tax | Old Regime Tax* | Better Option |
|---|
| ₹5L | ₹0 | ₹0 | New |
| ₹7L | ₹0 | ₹44,200 | New |
| ₹10L | ₹0 | ₹1,06,600 | New |
| ₹12L | ₹0 | ₹1,63,800 | New |
| ₹12.75L | ₹0 | ₹1,87,200 | New |
| ₹15L | ₹97,500 | ₹2,57,400 | New |
| ₹20L | ₹1,92,400 | ₹4,13,400 | New |
| ₹25L | ₹3,19,800 | ₹5,69,400 | New |
*Old regime tax shown with standard deduction only. With additional deductions, old regime tax would be lower.