Old Tax Regime vs New Tax Regime – Which Is Better?

Old vs New Tax Regime — Detailed Comparison

The new tax regime offers lower rates but no deductions. The old regime has higher rates but allows 80C, 80D, HRA, and other deductions.

When Old Regime Is Better

If your total deductions (80C + 80D + HRA + NPS) exceed ₹3.75 lakh, old regime saves more tax. This is common for salaried employees paying rent with health insurance and home loan.

When New Regime Is Better

If you have minimal deductions, new regime wins. Freelancers, new employees without investments, and people without HRA benefit more from new regime.

Quick Decision Rule

Total deductions above ₹3.75 lakh = Old Regime. Below ₹3.75 lakh = New Regime. Use our tax calculator for exact comparison.