About the AI Tax Regime Optimizer
What is the AI Tax Regime Optimizer?
This old vs new tax regime calculator works out your tax both ways for FY 2025-26 and tells you which regime saves more.
It also finds the total deductions you would need for the old regime to win.
How to use the AI Tax Regime Optimizer
- Gross Salary (₹ a year) (sample: 18,00,000)
- Other Income – interest, rent (₹) (sample: 50,000)
- Age (sample: Below 60 years)
- 80C – EPF, PPF, ELSS, LIC, principal (₹) (sample: 1,50,000)
- 80D – Health Insurance Premium (₹) (sample: 25,000)
- HRA Exemption (₹) (sample: 1,80,000)
- Home Loan Interest, Self-occupied (₹) (sample: 0)
- Own NPS 80CCD(1B) (₹) (sample: 50,000)
- Employer NPS 80CCD(2) (₹) (sample: 0)
- Other Deductions – 80E, 80G, 80TTA (₹) (sample: 0)
- Press Find My Best Tax Regime (results also refresh as you type). The result card shows the Better Regime, along with Tax under the new regime, Tax under the old regime, You save and Taxable income – new regime.
Formula used
Tax = Slab tax on taxable income − 87A rebate + surcharge + 4% cess
- New regime = ₹75,000 standard deduction; employer NPS allowed; nil tax up to ₹12 lakh taxable
- Old regime = ₹50,000 standard deduction plus 80C, 80D, HRA, home-loan interest, 80CCD(1B)
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Gross Salary (₹ a year) | 18,00,000 |
| Other Income – interest, rent (₹) | 50,000 |
| Age | Below 60 years |
| 80C – EPF, PPF, ELSS, LIC, principal (₹) | 1,50,000 |
| 80D – Health Insurance Premium (₹) | 25,000 |
| HRA Exemption (₹) | 1,80,000 |
| Home Loan Interest, Self-occupied (₹) | 0 |
| Own NPS 80CCD(1B) (₹) | 50,000 |
| Result | Value |
|---|---|
| Better Regime | New regime |
| Tax under the new regime | ₹1,61,200 |
| Tax under the old regime | ₹2,40,240 |
| You save | ₹79,040 |
| Taxable income – new regime | ₹17,75,000 |
| Taxable income – old regime | ₹13,95,000 |
| Old-regime deductions you claim | ₹4,05,000 |
| Deductions needed for the old regime to win | ₹6,58,333 |
Tips for using the AI Tax Regime Optimizer
- Salaried people can switch regimes every year when filing their return.
- Employer NPS (80CCD(2)) up to 14% of basic reduces tax in the new regime too.