Old vs New Tax Regime 2025-26
Which tax regime saves you more? The definitive guide with income-wise examples.
| Income Slab | Old Regime | New Regime |
|---|---|---|
| Up to Rs 3L | 0% | 0% |
| Rs 3L – Rs 7L | 5% (above Rs 2.5L) | 5% |
| Rs 7L – Rs 10L | 20% | 10% |
| Rs 10L – Rs 12L | 30% | 15% |
| Rs 12L – Rs 15L | 30% | 20% |
| Above Rs 15L | 30% | 30% |
| Standard Deduction | Rs 50,000 | Rs 75,000 |
| 80C Deductions | Up to Rs 1,50,000 | Not available |
| HRA Exemption | Available | Not available |
| Home Loan Interest | Up to Rs 2,00,000 | Not available |
| NPS 80CCD(1B) | Rs 50,000 | Not available |
✅ Break-even point
If your deductions (80C + HRA + home loan interest + NPS) exceed Rs 3.75 lakh annually, the old regime likely saves more. Below Rs 3.75L in deductions, the new regime almost always wins.
Real examples
Scenario A – Rs 12L income, no home loan, no HRA: New regime tax = Rs 80,000. Old regime tax = Rs 1,12,500. New regime saves Rs 32,500.
Scenario B – Rs 12L income, Rs 1.5L 80C, Rs 1.5L HRA, Rs 1.5L home loan interest: Old regime taxable income after deductions = Rs 7.25L. Old regime tax = ~Rs 47,500. New regime tax = Rs 80,000. Old regime saves Rs 32,500.
The practical advice
Run the numbers both ways with your actual deductions. The Income Tax Calculator on C₹oreSutra takes 30 seconds and shows both regimes side by side. Do not pick a regime based on general advice — pick it based on your specific deductions.
Run the numbers for your situation
Use our free calculators to see exactly how these options compare with your actual income and investment amount.
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