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Which tax regime saves more money on a ₹15 LPA salary — old or new?

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FREE TO USENO LOGIN REQUIREDUPDATED FY 2025–26
The Answer
New Regime saves ~₹1.6 L
with only standard deduction, FY 2025–26 (Budget 2025)

Compare old vs new tax regime for a ₹15 LPA salary under FY 2025–26 (Budget 2025) slabs. New regime tax is ~₹97,500 vs old regime ~₹2.57 L without deductions — new wins by ~₹1.6 lakh unless you claim ₹3.75 L+ of old-regime deductions.

By Aditya GuptaAccounting & Finance EducatorLast reviewed May 31, 2026Source: Income Tax Dept

Why Old vs New Comparison Matters at ₹15 LPA

At ₹15 LPA gross salary under FY 2025-26 (Budget 2025) rules, the new regime tax comes to about ₹97,500 (after ₹75,000 standard deduction, slab math, and 4% cess). The old regime — with only the ₹50,000 standard deduction and no other claims — produces a tax of about ₹2.57 lakh. That’s a ₹1.6 lakh annual gap in favour of the new regime for the average salaried person without big deductions.

For the old regime to break even with the new at ₹15 LPA, you need roughly ₹3.75 lakh of deductions: ₹1.5 lakh in 80C + ₹50K in 80CCD(1B) NPS + ₹1.25 lakh in HRA exemption (typical for ₹15,000-20,000 monthly metro rent) + ₹50K standard deduction. Add home loan interest deduction of up to ₹2 lakh and the old regime can pull meaningfully ahead.

The decision isn’t binary. Salaried employees can switch regimes every year at filing time. Business owners can only switch from old to new once; the choice locks. The calculator below lets you plug in your actual deductions and see the break-even.

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Old vs New Regime Calculator

Both regimes include ₹50,000 standard deduction. FY 2025–26.

New Regime Tax—
Old Regime Tax—
Better Option—
Visual Breakdown
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How We Calculated This

Annual income: ₹15,00,000
New regime: ₹75,000 standard deduction; Budget 2025 slabs (0–4L/4–8L/8–12L/12–16L/16–20L/20–24L)
Old regime: ₹50,000 standard deduction + your 80C/HRA/NPS deductions; old slabs (2.5L/5L/10L)
Both regimes include 4% health & education cess
Old regime default deductions: ₹1,50,000 (80C) — enter your actual total

Related Scenarios

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Take-Home on ₹12 LPA
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Tax Saved by 80C — ₹1.5 Lakh
₹46,800
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HRA Exemption at ₹8 LPA Metro
₹1.2 L/yr

Related Calculators

Income Tax Calculator→HRA Calculator→

Frequently Asked Questions

At what deduction level does old regime win?+
Under FY 2025–26 Budget 2025 slabs, old regime needs roughly ₹3.75 lakh+ of deductions (80C + HRA + NPS + standard) to match the new regime. Below that, new regime wins decisively because of lower slab rates and the wider 87A rebate up to ₹12 lakh taxable income.
Is the new regime automatically applied?+
Yes — the new regime is the default from FY 2024–25. Salaried employees must actively declare the old regime choice to their employer before April to get TDS deducted accordingly.
Can I switch regimes every year?+
Salaried employees: yes, every year at filing. Business owners: can switch only once from old to new and cannot revert.
What deductions are available in the new regime?+
Very limited: standard deduction (₹50K), employer NPS contribution (80CCD(2)), family pension deduction (₹15K). No 80C, 80D, HRA, LTA, or Chapter VI-A deductions.
What if I have a home loan?+
Home loan interest deduction (up to ₹2L for self-occupied) is only available in the old regime. If your home loan interest is ₹1.5–2L, this alone may make the old regime worthwhile at ₹15 LPA.