Tax
Income tax on ₹15 LPA salary — old vs new regime (FY 2025-26)
Old regime tax on ₹15L salary with full deductions: ~₹1.4L. New regime tax: ~₹97k. New wins for ₹15 LPA earners without 80C+24b. Full math comparison.
20 May 2026 · 6 min read
Quick answer: at a ₹15 LPA salary for FY 2025-26, your income tax under the old regime (with maxed-out 80C + ₹2 L home loan interest) is approximately ₹1.40 lakh. Under the new regime with no deductions, it's approximately ₹97,500 — saving you about ₹43,000. The new regime wins for most ₹15 LPA earners unless you have substantial home loan interest plus full 80C and HRA.
The ₹15 LPA bracket is right at the crossover point where your specific deductions decide which regime is better. If you have a home loan, the old regime might still win. If you don't, the new regime almost always does.
The two scenarios at ₹15 LPA
Old regime, fully deducted:
| Item | Amount |
|---|---|
| Gross salary | ₹15,00,000 |
| Standard deduction (old) | ₹50,000 |
| 80C (PPF + ELSS + EPF + LIC) | ₹1,50,000 |
| 80D (health insurance) | ₹25,000 |
| 24(b) (home loan interest, if applicable) | ₹2,00,000 |
| HRA exemption (let's assume ₹0 for the base case) | ₹0 |
| Taxable income | ₹10,75,000 |
| Tax: 5% × ₹2.5L + 20% × ₹5L + 30% × ₹75k | ₹1,35,000 |
| Cess (4%) | ₹5,400 |
| Total tax | ₹1,40,400 |
New regime, no deductions:
| Item | Amount |
|---|---|
| Gross salary | ₹15,00,000 |
| Standard deduction (new) | ₹75,000 |
| 80C / 24(b) / HRA | Not allowed |
| Taxable income | ₹14,25,000 |
| Tax: 5% × ₹4L + 10% × ₹4L + 15% × ₹2.25L | ₹93,750 |
| 87A rebate | ₹0 (taxable > ₹12 L) |
| Marginal relief | ₹0 (computed tax < income excess) |
| Cess (4%) | ₹3,750 |
| Total tax | ₹97,500 |
Difference: new regime saves ₹42,900/year in this scenario.
When does old regime still win at ₹15 LPA?
The old regime wins if and only if your total old-regime deductions (80C + 24b + 80D + HRA + standard deduction) exceed roughly ₹4.25 lakh. Because:
- New regime = ₹97,500 tax
- For old regime to match, taxable income must be such that tax = ₹97,500
- That requires taxable income of ~₹10.95 L
- Which means deductions of ~₹4.05 L from the ₹15 L gross
- Plus the ₹50k standard deduction = ~₹4.55 L total
Realistic situations where old wins:
- Home loan with ₹2 L interest paid + ₹1.5 L 80C + ₹50k 80D + significant HRA — total ~₹4.5-5 L deductions.
- Living in metro on rent with HRA exemption of ₹2-2.5 L + 80C + 80D — total ~₹4.25-4.75 L.
- Own a let-out property with significant interest deduction beyond ₹2 L (set off against rental income loss).
For the typical ₹15 LPA salaried person without a home loan and not on rent, the new regime is clearly better.
What about ₹16 LPA, ₹18 LPA, ₹25 LPA?
The crossover threshold (where old beats new) shifts as income rises:
| Salary | Crossover deductions needed |
|---|---|
| ₹10 LPA | ~₹2.5 L |
| ₹12 LPA | ~₹2.75 L |
| ₹15 LPA | ~₹4.25 L |
| ₹20 LPA | ~₹4.75 L |
| ₹25 LPA | ~₹5.25 L |
| ₹30 LPA | ~₹6 L |
The pattern: higher income, more deductions needed for old regime to win. And there's a hard ceiling — beyond ₹6 L of deductions, you've maxed everything out (₹1.5 L 80C + ₹2 L 24b + ₹50k 80D + ₹75k 80EEA + ₹50k NPS + standard).
What changes for FY 2025-26 specifically
The new regime received a major boost in Budget 2025:
- Basic exemption raised from ₹3 L to ₹4 L
- 87A rebate ceiling raised to ₹12 L (was ₹7 L)
- Standard deduction held at ₹75,000 for new regime
- Marginal relief explicitly added between ₹12 L and ₹12.7 L
These changes specifically targeted the ₹7-15 LPA bracket — and they make the new regime the default choice for that range unless you have very specific deduction structures.
How to actually decide for yourself
The lazy rule:
- Add up your old-regime deductions (80C + 24b + 80D + HRA + others).
- Compare to the threshold for your salary in the table above.
- If your deductions are higher, old regime wins. If lower, new regime wins.
The proper way: use the Income Tax Calculator. Enter your salary, age, and old-regime deductions. The tool shows both regimes side by side with the saving clearly indicated.
When do you have to declare your regime choice?
- Salaried without business income: choose at the start of the financial year (April), and you can switch every year.
- Salaried with business income: you can switch only once in your lifetime to the old regime, then back to new is a one-time choice. Decide carefully.
- No specific declaration needed if you stay with the new regime — it's now the default since FY 2023-24.
If you don't tell HR / employer your regime choice, they'll assume new regime and deduct TDS accordingly. You can still file your return in the old regime if you have deductions to claim — but your monthly cash flow during the year will be based on the assumed regime.
A common mistake at ₹15 LPA
Many ₹15 LPA earners blindly stick with the old regime "because that's what we always did." With the new regime's overhaul in Budget 2025, this is now usually the wrong call. Spend 5 minutes running both scenarios in the calculator at the start of each financial year. The 5 minutes might save you ₹40-50,000 in tax.
Use the income tax calculator
Open the Income Tax Calculator. Enter ₹15,00,000 as your gross income, set "salaried" and your age. Toggle the deductions panel and add your actual 80C, 80D, home loan interest and HRA exemption (use the HRA Exemption Calculator for that number). The tool shows old vs new and tells you which to pick.
FAQ
Q. Can I claim home loan deductions in the new regime? A. No — home loan deductions (principal under 80C, interest under 24b, additional under 80EEA) are disallowed in the new regime. This is the biggest reason home-loan borrowers stick with the old regime.
Q. What's the breakeven salary for old vs new? A. There's no single number — it depends on your deductions. But for someone with no home loan, no HRA, just basic 80C: new wins from ₹7 LPA all the way to ₹50 LPA. For someone with a maxed-out old regime (₹6 L of deductions), old wins above roughly ₹15 LPA.
Q. Is the new regime better for first-time taxpayers? A. Almost always yes. First-time taxpayers haven't built up 80C investments, don't have home loans, and rarely have HRA exemption claims in their first job. The new regime's ₹12 L rebate ceiling means most under ₹12 L gross pay zero tax.
Q. Does the new regime apply to capital gains too? A. No — capital gains tax rates are independent of the regime. Equity LTCG over ₹1.25 L is taxed at 12.5%, debt funds at slab rates (so the regime affects the slab portion). Stick with whatever regime is better for your salary income.
Q. What about NPS deduction in new regime? A. The employer's NPS contribution is deductible under Section 80CCD(2) in both regimes (subject to 14% of salary cap for govt, 10% for private). Your own additional ₹50k contribution under 80CCD(1B) is disallowed in the new regime. So NPS is partly available in the new regime.
Try the free tool
Income Tax Calculator (FY 2025-26)
Old vs new regime — with marginal relief, surcharge & cess.
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