New vs Old Regime — 2026 Tax Slabs
| Income Range | Old Regime | New Regime (FY 2025-26) |
|---|---|---|
| Up to ₹3 lakh | Nil | Nil |
| ₹3L – ₹7L | 5% | 5% |
| ₹7L – ₹10L | 20% | 10% |
| ₹10L – ₹12L | 30% | 15% |
| ₹12L – ₹15L | 30% | 20% |
| Above ₹15L | 30% | 30% |
Standard deduction: ₹75,000 in New Regime | ₹50,000 in Old Regime (for salaried)
Break-Even Deduction Level — Which Regime Wins?
The Old Regime is better ONLY if your total deductions exceed the "break-even" point for your income level:
| Annual Income | Break-Even Deductions | Verdict if Deductions Above Break-Even |
|---|---|---|
| ₹8 lakh | ~₹2.5 lakh | Old Regime better |
| ₹12 lakh | ~₹3.75 lakh | Old Regime better |
| ₹15 lakh | ~₹4.25 lakh | Old Regime better |
| ₹20 lakh | ~₹4.50 lakh | Old Regime better |
Common Deductions Under Old Regime
| Deduction | Section | Max Amount |
|---|---|---|
| HRA Exemption | 10(13A) | Based on formula |
| EPF + PPF + ELSS + LIC | 80C | ₹1,50,000 |
| NPS additional | 80CCD(1B) | ₹50,000 |
| Health insurance | 80D | ₹25,000–₹75,000 |
| Home loan interest | 24(b) | ₹2,00,000 |
| Standard deduction | — | ₹50,000 |
| Total possible | ₹5,00,000+ |
Practical Recommendation
- If you have a home loan + HRA + full 80C investments — Old Regime almost certainly wins
- If you're young, no home loan, don't invest much — New Regime is simpler and better
- Income below ₹7.75 lakh with standard deduction — New Regime has zero tax (rebate under 87A)
- Always calculate BOTH before filing — the difference can be ₹50,000–₹2,00,000/year
🧾 Calculate Your Tax — Old vs New Regime
Compare Tax Now →Q: Can I switch between Old and New Regime every year?
Salaried employees can switch between regimes every financial year. Business owners can switch only once (to Old Regime from New, or New from Old, after which they're locked). Decide before filing your ITR for the year.
Q: Is the New Regime always simpler?
Yes — New Regime has no deduction tracking, no investment proofs, no HRA receipts. Just your salary and standard deduction. But simpler doesn't mean better — if your deductions are high, Old Regime saves significantly more money.
⚠️ Disclaimer
This article is for educational purposes. Consult a qualified tax or financial advisor for personalised advice.