Old vs New Tax Regime Calculator
Compare your income tax under Old and New regime for FY 2024-25. See which saves you more. Includes 87A rebate, 4% cess, and all major deductions.
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Old Regime vs New Regime — Complete Guide
The Finance Act 2023 made the New Tax Regime the default from FY 2023-24. However, you can still choose the Old Regime by filing a declaration with your employer before the start of the financial year.
When Old Regime is Better
Old Regime saves more tax when you have significant deductions. If you are investing ₹1.5L in 80C, paying HRA, contributing to NPS, and have health insurance — the old regime deductions can be ₹2.5–4L+ which reduces your taxable income substantially. At income levels of ₹8–15L, the old regime with full deductions often wins.
When New Regime is Better
New Regime is better when your deductions are low. If you're a young professional who hasn't started tax-saving investments, don't pay rent in your own name, or have a salary above ₹15L — the new regime's lower tax rates often result in less tax. It's also simpler — no investment proof submission, no declaration, less paperwork.