Old Tax Regime vs New Tax Regime 2025-26 | Which is Better?
What is the difference between old and new tax regime?
Old Tax Regime: Higher tax rates but allows deductions under 80C, 80D, HRA, home loan interest, etc.
New Tax Regime (2025-26): Lower tax rates but NO deductions allowed (standard deduction of ₹75,000 for salaried). It is now the default regime.
New Tax Regime Slabs 2025-26
| Income Range | Tax Rate |
|---|---|
| ₹0 – ₹3 lakh | Nil |
| ₹3 – ₹7 lakh | 5% |
| ₹7 – ₹10 lakh | 10% |
| ₹10 – ₹12 lakh | 15% |
| ₹12 – ₹15 lakh | 20% |
| Above ₹15 lakh | 30% |
Which tax regime should I choose?
Choose Old Regime if your total deductions (80C + 80D + HRA + home loan) exceed ₹2.5 lakh.
Choose New Regime if you have minimal deductions and want simpler filing.
Use our FREE Tax Calculator to compare both regimes →
