Estimate the tax saved by your health insurance deduction under the old regime and the net cost of the premium.
This tool estimates what a health insurance premium really costs you after the deduction that was Section 80D of the Income-tax Act, 1961 and continues, with the same limits as published, as section 126 of the Income-tax Act, 2025 from tax year 2026-27. The deduction is available only under the old tax regime; the default new regime does not allow it.
Step 1: cap the deduction. Self, spouse and dependent children: up to ₹25,000 a year (₹50,000 if the eldest insured is 60 or over). Parents: a further ₹25,000 (₹50,000 if either parent is 60 or over). Preventive health check-ups count within these limits up to ₹5,000. Enter the capped total, not the premium.
Step 2: marginal rate. Use your highest old-regime slab rate plus 4% health and education cess: 30% becomes 31.2%, 20% becomes 20.8%, 5% becomes 5.2%. Surcharge, where it applies, raises it further.
Worked example (illustrative). Premiums: ₹22,000 for yourself and family, ₹38,000 for parents aged 64 and 61. Deduction: ₹22,000 + ₹38,000 = ₹60,000 (both within limits). At 31.2%, tax saved = ₹18,720 and the ₹60,000 premium costs you ₹41,280.
Limits. The saving is zero if the new regime is cheaper for you overall. Premium paid in cash does not qualify (a health check-up can be paid in cash). This is an estimate, not tax advice. See the 80D worked example.
Worked Examples and Buying Checklists
How the health insurance tax deduction works for self, family and parents, the 80D limits, old vs new regime, payment rules and how it continues under the Income-tax Act 2025.
