Old vs New Tax Regime
Updated 2026-10-29
Quick answer: The new regime has lower slab rates, a ₹75,000 standard deduction and no tax up to ₹12 lakh of taxable income, but disallows most deductions. The old regime only wins if you claim large deductions such as 80C, 80D, HRA and home-loan interest.
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New regime vs Old regime at a glance
| New regime | Old regime | |
|---|---|---|
| Standard deduction | ₹75,000 | ₹50,000 |
| Rebate (87A) | Up to ₹60,000 (taxable ≤ ₹12 lakh) | Up to ₹12,500 (taxable ≤ ₹5 lakh) |
| 80C / 80D / HRA | Not allowed | Allowed |
| Top rate threshold | 30% above ₹24 lakh | 30% above ₹10 lakh |
| Default | Yes | Must opt in |
Verdict
Most salaried taxpayers pay less under the new regime unless total deductions are large. Run both in the calculator.
FAQs
Can I switch regimes every year?
Salaried individuals without business income can choose each year when filing. Those with business income have limited switching.