Home Loan Tax Saving Estimator
Enter your annual principal and interest, choose your property type and tax regime, and get an instant estimate of your Section 80C, 24(b) and 80EEA deductions and the tax you save.
Home Loan Tax Saving Estimator
*Estimated tax saving is indicative and assumes 30% slab rate. Actual saving depends on your complete tax profile. Consult a CA for precise computation.
A home loan gives tax deductions under three sections in the old regime: Section 80C — up to ₹1.5 lakh on principal repayment; Section 24(b) — up to ₹2 lakh on interest for a self-occupied property; Section 80EEA — an additional ₹1.5 lakh on interest for eligible first-time buyers. Maximum combined benefit is ₹5 lakh a year. Under the new regime, only the 24(b) interest deduction on a let-out property survives.
How the Calculator Estimates Your Saving
The estimator applies each statutory cap to your inputs and totals the eligible deduction, then multiplies by an assumed 30% marginal slab to show an indicative tax saving. The logic follows current FY 2025-26 rules:
- Principal (80C): lower of principal repaid or ₹1,50,000 — only in the old regime.
- Interest (24b), self-occupied: lower of interest paid or ₹2,00,000 — old regime only.
- Interest (24b), let-out: full interest, but the house-property loss set off against other income is capped at ₹2,00,000 (excess carried forward 8 years).
- 80EEA: interest above the ₹2L 24(b) cap, up to ₹1,50,000, for eligible first-time buyers (loan sanctioned Apr 2019–Mar 2022).
- Tax saving = total eligible deduction × 30% (indicative highest-slab rate).
Because 80C, self-occupied 24(b) and 80EEA are all withdrawn in the new regime, a borrower with a big loan often saves more tax under the old regime. Run the calculator on both regimes and compare before you lock your choice for the year.
Home Loan Tax Benefits — Section-wise (FY 2025-26)
| Section | Component | Max Deduction | Condition | New Regime? |
|---|---|---|---|---|
| 80C | Principal repayment | ₹1,50,000 | Part of overall 80C limit; property not sold within 5 years | No |
| 24(b) | Interest — self-occupied | ₹2,00,000 | Construction complete within 5 years of loan | No |
| 24(b) | Interest — let-out | No upper limit | Actual interest; loss set-off capped ₹2L, excess carried 8 yrs | Yes |
| 80EEA | Additional interest (first-time) | ₹1,50,000 | Loan sanctioned Apr 2019–Mar 2022; stamp duty ≤ ₹45L | No |
| 80EE | Additional interest (older scheme) | ₹50,000 | Loan sanctioned Apr 2016–Mar 2017; loan ≤ ₹35L | No |
80EEA and 80EE apply only to loans sanctioned within their respective windows; both are old-regime only. Figures unchanged for FY 2025-26.
Old vs New Tax Regime — Home Loan Deductions
| Deduction | Old Regime | New Regime (default FY 2024-25 onward) |
|---|---|---|
| 80C — Principal repayment | Up to ₹1.5 lakh | Not available |
| 24(b) — Interest (self-occupied) | Up to ₹2 lakh | Not available |
| 24(b) — Interest (let-out) | No limit (loss set-off capped ₹2L) | Available (loss set-off capped ₹2L) |
| 80EEA — Additional interest | Up to ₹1.5 lakh | Not available |
| Stamp duty / registration | Under 80C (within ₹1.5L) | Not available |
The new regime has lower slab rates but removes these deductions. For most home-loan borrowers, the old regime remains more beneficial.
Under-construction property — pre-construction interest
Interest paid during the pre-construction period (before possession) cannot be claimed in those years. It is aggregated and allowed in 5 equal instalments from the year of possession, within the overall ₹2 lakh Section 24(b) cap for a self-occupied home.
Joint home loan — double the benefit
If co-owners jointly service the loan, each can claim up to ₹1.5L (80C), ₹2L (24b) and ₹1.5L (80EEA) in proportion to their EMI share — potentially doubling the combined saving for a couple under the old regime.
Not sure which regime saves you more? Get your return filed the tax-optimal way.
Talk to a Tax Expert →- Income Tax Department: incometax.gov.in
- Sections 80C, 24(b), 80EEA & 80EE, Income-tax Act 1961
- New regime default: Finance Act 2023 (Section 115BAC), from FY 2024-25
Disclaimer: This guide is general information based on the law and notifications in force when it was last updated. It is not professional advice for your case — rates, thresholds and due dates change, so check the current position or speak to our CA team before you act on it.