Income Tax Calculator FY 2025-26 Comparison: Old vs New Regime
Are you trying to decide between the Old and New Tax Regimes for Financial Year (FY) 2025-26 (Assessment Year 2026-27)? Recent revisions have made the new tax regime highly attractive for the majority of salaried individuals.
In this analysis, we perform an in-depth income tax calculator 2025-26 comparison to see which tax regime saves you more money based on your annual deductions and salary slabs.
New Tax Regime Slabs (FY 2025-26)
Under the new tax regime, tax rates are lower, and standard deduction is set to ₹75,000 for salaried employees. The tax slabs are structured as follows:
| Income Slab | Tax Rate (New Regime) |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 to ₹7,00,000 | 5% |
| ₹7,00,001 to ₹10,00,000 | 10% |
| ₹10,00,01 to ₹12,00,000 | 15% |
| ₹12,00,01 to ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Importantly, Section 87A rebate makes net taxable incomes up to ₹7,00,000 completely tax-free under the new regime.
Old Tax Regime Slabs (FY 2025-26)
The old tax regime retains standard deductions (₹50,000) and allows various exemptions (HRA, LTA, Section 80C, Section 80D, Section 24b). Slabs remain unchanged:
- Up to ₹2.5 lakh: Nil
- ₹2.5 lakh to ₹5 lakh: 5%
- ₹5 lakh to ₹10 lakh: 20%
- Above ₹10 lakh: 30%
The Break-Even Deduction Rule
To determine if the old regime is better, find your break-even deduction point. If your total deductions exceed the break-even threshold, the old regime is better; otherwise, choose the new regime.
- For an income of ₹10,000,000, the break-even deductions are approximately ₹2,50,000.
- For an income of ₹15,000,000, the break-even deductions are approximately ₹3,75,000.
- For an income of ₹20,000,000, the break-even deductions are approximately ₹4,25,000.
Common deductions to reach these thresholds include: Section 80C (₹1.5L), Section 24b Home Loan Interest (₹2L), Section 80D Health Insurance (₹25K–75K), and HRA exemption.
Calculate Your Best Regime Instantly
Don't calculate slab distributions and break-even points manually. Arthavi has created a premium, ad-free Income Tax Regime Comparison calculator for FY 2025-26.
Input your salary and deductions to see your old vs new regime liability side-by-side, complete with marginal relief calculations.
Conclusion
Unless you have high deductions (like home loan interest + high basic HRA + ELSS + NPS), the new tax regime will save you both money and tax compliance effort. Use Arthavi's Free Income Tax Calculator to compare your exact tax liabilities today.