comparison
Old tax regime vs new tax regime
By Shivam Bhandari · Reviewed 31 October 2026 · How we write
The new regime has lower rates and a rebate making taxable income up to ₹12 lakh tax-free, but allows few deductions. The old regime has higher rates but allows deductions like 80C, 80D, HRA and home loan interest.
Side-by-side comparison
| Aspect | Old regime | New regime |
|---|---|---|
| Default | Must opt in | Default regime |
| Slab rates | 5%, 20%, 30% (after ₹2.5L exemption) | 5% to 30% across seven slabs from ₹4L |
| Rebate | Up to ₹12,500 (income ≤ ₹5L) | Up to ₹60,000 (income ≤ ₹12L) |
| Standard deduction (salaried) | ₹50,000 | ₹75,000 |
| 80C, 80D, HRA, home loan interest | Allowed | Mostly not allowed |
| Best for | People with large deductions | Most others, especially income up to about ₹12.75L salary |
Which should you choose?
Old regime
- · You pay significant rent and claim HRA.
- · You have a home loan.
- · You fully use 80C and 80D.
New regime
- · You have few deductions.
- · Your salary is up to about ₹12.75 lakh.
- · You want simplicity.
the verdict
For most taxpayers the new regime is cheaper; run both with our calculator before deciding.
Frequently asked questions
Which regime is better for ₹15 lakh salary?
With only 80C and 80D deductions, the new regime is usually much cheaper. Use the calculator with your actual deductions.
Can I switch regimes every year?
Salaried individuals without business income can generally choose each year when filing. Business income has stricter rules.
Did Budget 2026 change the slabs?
No — FY 2026-27 slabs are the same as FY 2025-26.
This is general information, not tax advice.