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New vs Old Tax Regime: Which One Should You Choose?
Updated 13 Oct 2026
India offers two tax regimes for individuals. The new regime has lower slab rates but allows very few deductions, while the old regime has higher rates but lets you claim deductions such as 80C, 80D, HRA and home loan interest.
New regime slabs (FY 2025-26)
| Income | Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4–8 lakh | 5% |
| ₹8–12 lakh | 10% |
| ₹12–16 lakh | 15% |
| ₹16–20 lakh | 20% |
| ₹20–24 lakh | 25% |
| Above ₹24 lakh | 30% |
With the Section 87A rebate, there is no tax on taxable income up to ₹12 lakh under the new regime. Salaried taxpayers also get a ₹75,000 standard deduction.
When the old regime wins
If your total deductions (80C, 80D, HRA, home loan interest and so on) are large, the old regime may still save you more. Use our calculator to compare both instantly.