HourSlip
Sign inStart free →Start free

Which regime actually costs you less?

Run both regimes through the latest slabs with your real deductions. See exactly which one saves you more — numbers for your income, not a generic example.

Your numbers

₹
₹

Professional receipts only — never salary. Open only to specified professions (IT, engineering, architecture, legal, medical, accountancy, technical consultancy, interior decoration and a few notified others).

software, rent, travel…
₹

Old regime deductions (ignored under new regime)

max ₹1,50,000
₹
max ₹50,000
₹
₹

No salary means no HRA exemption — rent relief for the self-employed is 80GG (old regime only).

Old Regime

Gross income₹30,00,000
Business income (receipts − expenses)₹30,00,000
Deductions₹1,75,000
Taxable income₹28,25,000
Slab tax₹6,60,000
Health & Education cess (4%)₹26,400
Total tax₹6,86,400
Tax to pay₹6,86,400

New Regime

Winner
Gross income₹30,00,000
Business income (receipts − expenses)₹30,00,000
Deductions₹0
Taxable income₹30,00,000
Slab tax₹4,80,000
Health & Education cess (4%)₹19,200
Total tax₹4,99,200
Tax to pay₹4,99,200

Breakeven curve — FY 2026-27

The old regime is never cheaper between ₹3L and ₹50L of receipts for your inputs — the new regime wins or ties across the visible range.

Old regime uses your entered 80C + 80D + HRA + other deductions, plus the ₹50,000 standard deduction if you also earn salary. New regime applies only the ₹75,000 standard deduction, and only with salary income. Any salary you entered is held fixed and taxed as salary; the curve varies your professional receipts, 50 sample points from ₹3L to ₹50L.

Share your result:Share on WhatsApp

Take it with you

My tax position, FY 2026-27

Both regimes on the same income, with the slab, rebate, surcharge and cess working shown side by side — a one-pager you can forward to your CA as-is, instead of retyping your numbers into an email.

No email, no signup. Written to be read by an accountant.

Keep this current all year — try HourSlip free →

Worked example

Software developer earning ₹15L gross — old vs new regime, with 80C + 80D

New regime (FY 2026-27): 44ADA taxable = ₹15L × 50% = ₹7.5L. Slab: 0-4L @0%, 4L-7.5L @5% = ₹17,500. 87A rebate applies (₹7.5L < ₹12L) → total tax ₹0.

Old regime (same freelancer, 80C ₹1.5L + 80D ₹25K): 44ADA taxable = ₹7.5L. Deductions: ₹1.5L + ₹25K = ₹1.75L. Taxable after deductions = ₹7.5L − ₹1.75L = ₹5.75L. Slab: 0-2.5L @0%, 2.5-5L @5%=₹12,500, 5-5.75L @20%=₹15,000 → ₹27,500. 87A: taxable > ₹5L so no rebate. Add 4% cess → total ≈ ₹28,600.

Verdict: New regime wins by ₹28,600. The old-regime deductions (₹1.75L) are not large enough to offset the higher slab rates for this income level. The new regime beats old for most freelancers earning ₹5–25L with standard deductions.

When old regime wins: Only with very large deductions — roughly ₹5L or more at around ₹13L of taxable income, about ₹7.75L at ₹24L and above (home-loan interest + max 80C + 80D + NPS together). Below that, the new regime is cheaper.

How this works

Old vs new, decided by your deductions.

Old or new tax regime — which is better for freelancers?
It depends on your deductions, and the bar is higher than most guides say. On the current slabs the new regime is cheaper unless your old-regime deductions are large — roughly ₹5L or more at around ₹13L of taxable income, rising to about ₹7.75L at ₹24L and above. Our tool computes it for your exact numbers.
Can I switch between old and new regime every year?
Salaried taxpayers can switch each FY. Freelancers and business owners can only switch once — if you opt out of the new regime (the default since FY 2023-24), you can come back to it only once in your lifetime. Choose carefully.
Does 87A rebate apply in both regimes?
Yes, but the threshold differs. New regime: ₹60,000 rebate if taxable income ≤ ₹12L (effectively zero tax up to ₹12L). Old regime: ₹12,500 rebate if taxable income ≤ ₹5L.
What's the standard deduction in old vs new regime?
New regime offers a ₹75,000 standard deduction for salaried people and pensioners (since FY 2024-25); the old regime ₹50,000. Freelancers without salary get neither and cannot claim HRA (rent relief for the self-employed is s.80GG, old regime only).
At what income does the old regime start beating the new regime?
It depends on your deductions. With ₹1.5L (80C only) or ₹3L of deductions, the old regime never comes out ahead — the new regime is cheaper or ties at every income. The old regime starts to win only with deductions of roughly ₹5–8L, depending on income. The breakeven chart above plots both curves and marks every crossover for your inputs across FY 2025-26 and FY 2026-27.

Slabs per Finance Act 2025, unchanged by Finance Act 2026. The new regime has been the default since FY 2023-24 (AY 2024-25) under Section 115BAC; from tax year 2026-27 the rule is s.202 of the Income-tax Act 2025. Results are indicative; consult a CA for filing.

Related guides

Continue your calculation