# Old vs New Tax Regime Calculator

> Compares income tax under the old and new regimes for a salaried employee and shows which is lower.

Interactive calculator: https://www.cashiq.in/tools/old-tax-regime-vs-new-tax-regime
Last updated: 2026-11-10

The new tax regime has lower slab rates and a ₹75,000 standard deduction but drops most deductions. The old regime has higher rates but allows HRA, Section 80C, 80D, home loan interest and more. Enter your salary and deductions to see which leaves you more take-home pay.

## How it is calculated

- Old regime: gross salary − exemptions (HRA, LTA) − ₹50,000 standard deduction − deductions (80C, 80D, 24(b), 80CCD(1B) and others) = taxable income.
- New regime: gross salary − ₹75,000 standard deduction − employer NPS contribution = taxable income.
- Tax is worked out slab by slab, the Section 87A rebate is applied where eligible, and 4% health and education cess is added.

## Rules and assumptions

- Salaried employees can choose either regime each year when filing their return.
- This calculator applies the Tax Year 2026-27 slab rates, which Budget 2026 left unchanged: new-regime taxable income up to ₹12 lakh pays no tax after the rebate.
- Tax is worked out with the same tested engine as the Income Tax Calculator, including the rebate with marginal relief, surcharge above ₹50 lakh and 4% cess.

## Frequently asked questions

### Which tax regime is better for me?

If your deductions (80C, 80D, HRA, home loan interest and so on) are large, the old regime can win. With few deductions, the new regime usually costs less. The calculator compares both for your numbers.

### Can I switch between the old and new regime?

Salaried employees without business income can choose either regime every year when filing their return.

### Is HRA allowed in the new tax regime?

No. HRA exemption, Section 80C and most other deductions are not allowed in the new regime. Employer NPS contribution under Section 80CCD(2) is still allowed.

### What is the standard deduction in each regime?

₹75,000 in the new regime and ₹50,000 in the old regime, for salaried employees and pensioners.

## Sources

- [Income Tax Department](https://www.incometax.gov.in/)

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Results are estimates for planning, not investment, tax or legal advice. Returns are assumptions, not guarantees. Source: CashIQ, https://www.cashiq.in/tools/old-tax-regime-vs-new-tax-regime