⚖️ Side-by-Side Comparison · 2026

Old vs New Tax Regime Calculator –
Which Saves More Tax in {YEAR}?

The single most important tax decision for Indian salaried employees in FY 2025-26. New Regime is the default — but for those with large deductions (80C, HRA, 80D), Old Regime may still save more. This tool gives you the exact answer.

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Comparison Table

Old vs New Tax Regime Calculator 2026 — Complete Comparison

FactorOld Tax RegimeWinner
Default regimeYes (since FY 2023-24)No — must opt-in explicitlyNew
Standard deduction₹75,000₹50,000New
80C (PPF,ELSS etc)❌ Not available✅ Up to ₹1.5LOld
HRA exemption❌ Not available✅ Significant for rentersOld
80D (Health ins.)❌ Not available✅ ₹25K-50KOld
Tax on ₹7L incomeZero (87A rebate)~₹2,500New
Best forLow deductions / ≤₹10L incomeHigh deductions / >₹12L incomeDepends
💡 Verdict: New Regime wins for most salaried employees earning under ₹10L with minimal deductions. Old Regime wins for those with high 80C investments, HRA, home loan, and 80D. If your annual deductions exceed ₹3.5L, Old Regime usually saves more. Use our Income Tax Calculator to compare with your exact numbers.
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FAQ

Frequently Asked Questions

Which tax regime is better in 2026?
New Regime is better for: income under ₹10L, minimal deductions, no home loan, not renting. Old Regime is better for: income above ₹12L with high deductions (80C ₹1.5L + HRA ₹1-2L + 80D ₹50K + home loan interest ₹2L = ₹5-6L deductions). Break-even: roughly when total deductions exceed ₹3.5L. Use our calculator for your exact situation.
Can I switch tax regime every year?
Salaried employees can switch between Old and New regime every financial year when filing ITR. Inform your employer at the start of the year for TDS calculation. For FY 2025-26 filing: the switch is in your ITR-1/ITR-2 form. Self-employed with business income: switching back from New to Old requires Form 10-IEA and is more restricted.

🔗 Related Comparison Tools

Income Tax CalculatorELSS CalculatorPPF CalculatorHRA CalculatorNPS CalculatorPPF vs ELSS

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