Tax Savings Calculator
Calculate how much tax you save by investing in 80C, 80D, HRA and other deductions under old/new regime.
About this calculator
The Tax Savings Calculator shows how much tax your deductions save under the old regime and compares the result with the new regime for FY 2026-27. Enter your income and the deductions you claim: 80C, 80D, HRA, NPS, home loan interest and others. It then reports the taxable income and tax under both regimes and tells you which is better.
Use it before you spend on tax-saving investments. A deduction only matters if it actually lowers your final tax. Under the new regime these deductions do nothing, so if the new regime already gives the lower tax, buying tax-saving products purely for the deduction is wasted money.
How to use it
- Enter your Annual Income.
- Enter amounts for each deduction you plan to use: 80C, 80D, HRA, NPS, home loan interest and other.
- Press Calculate Tax Savings.
- Read total deductions, the taxable income and tax under each regime, and the difference between them.
How the saving is measured
Old regime taxable income = income − ₹50,000 standard deduction − all deductions. New regime taxable income = income − ₹75,000. Tax is worked out on both with slab rates, rebate, surcharge and 4% cess. The saving is the difference, and a separate figure shows how much tax your deductions removed within the old regime.
Worked example
Income ₹15,00,000 with ₹50,000 of deductions
| Taxable income, old regime | ₹14,50,000 |
| Tax, old regime | ₹2,57,400 |
| Taxable income, new regime | ₹14,25,000 |
| Tax, new regime | ₹97,500 |
| New regime is better by | ₹1,59,900 |
With few deductions the old regime has little to offer. Each ₹1 lakh of extra deduction at the 30% slab saves ₹31,200 including cess, but you need a lot of them to beat the new regime's wider slabs.
Tips and common mistakes
- Do not invest just to save tax. Choose investments for returns and risk, and treat the deduction as a bonus.
- ELSS, PPF, NPS, the tax-saver FD and life insurance premiums all count within the ₹1.5 lakh limit of 80C.
- An extra ₹50,000 NPS deduction under 80CCD(1B) sits outside the ₹1.5 lakh limit in the old regime.
- Health insurance premiums under 80D can save tax and protect you, so they pass both tests.
- Plan in April, not March, so investments are spread across the year.
Frequently asked questions
How much tax can I save with 80C?
Up to ₹1.5 lakh of deduction. At the 30% slab that saves ₹46,800 including cess, but only in the old regime.
Do deductions work in the new regime?
Mostly not. The new regime allows the standard deduction and employer NPS contributions but not 80C, 80D or HRA.
Which investments qualify for 80C?
EPF, PPF, ELSS, NSC, tax-saver FD, life insurance premium, home loan principal, Sukanya Samriddhi and children's tuition fees.
What is the extra NPS deduction?
Section 80CCD(1B) gives an additional ₹50,000 deduction in the old regime over and above 80C.
How is the new regime compared?
The tool computes tax on income less the ₹75,000 standard deduction and shows it beside the old regime result.
Is the result final?
It is an estimate. Your actual liability depends on all income and deductions in your return.