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Old vs New Regime

Old vs New Regime Tax Calculator

Compare income tax under old regime (with 80C / 80D / HRA / home loan deductions) vs new regime (FY 2026-27 slabs with ₹12L tax-free threshold, ₹60K rebate u/s 87A). Shows side-by-side tax + which regime saves more for your specific deduction profile.

Income

₹0₹10 Cr

Annual CTC / salary before any deductions

₹0₹10 Cr

Interest, rental, capital gains (net)

Salaried?

Deductions (only used for old regime)

₹0₹1.5 L

Cap ₹1,50,000

₹0₹50 K

Cap ₹50,000

₹0₹25 K

Cap ₹25,000

₹0₹2 L

Cap ₹2,00,000 (self-occupied)

₹0₹1000 Cr
₹0₹1000 Cr
₹0₹1000 Cr

80E / 80G / etc.

Old regime saves

Old regime saves ₹3,900. Old: ₹1,01,400. New: ₹1,05,300.

₹3,900

(Old: ₹1,01,400 · New: ₹1,05,300)

Old regime tax

₹1.0 L

New regime tax

₹1.1 L

Savings

₹3,900

Better regime

Old regime

BREAK-EVEN

The cross-over point

Break-even deduction = ₹6,06,251. If you have less than this in total old-regime deductions, new regime is better; more than this, old regime wins.

Your current old-regime total deduction is ₹6,25,000above the break-even.

IMPORTANT

Default to new regime

From FY 2023-24, the new regime is the DEFAULT. You must explicitly opt for old regime in your ITR (Form 10-IEA for salaried). The ₹12L zero-tax threshold under new regime (post-Budget 2025) made it dominant for most salaried; check the comparison before filing.

Old vs New — total tax payable

How It Works

This calculator computes your annual income tax under both the old and new tax regimes side-by-side for FY 2026-27 (AY 2027-28) and shows which regime saves more for your specific deduction profile. The new regime under Section 115BAC is the default from FY 2023-24; the old regime requires explicit opt-out via Form 10-IEA for salaried taxpayers.

Key differences

The new regime has lower slab rates and a much higher Section 87A rebate (full rebate up to ₹12L taxable income, capped at ₹60,000), but allows almost no itemised deductions — only the ₹75,000 standard deduction (salaried) and the employer NPS contribution u/s 80CCD(2) up to 14% of basic. The old regime uses higher slab rates and a lower ₹50,000 standard deduction, but lets you claim 80C (up to ₹1.5L), 80CCD(1B) (₹50K NPS extra), 80D (₹25K health), 24(b) (₹2L home loan interest), HRA, LTA, and other deductions.

The break-even rule

The break-even deduction depends on your gross income. At ₹15L gross salary, you typically need ₹4-6L of total deductions for the old regime to win; below that, the new regime saves more. This calculator computes the exact break-even for your inputs so you can see how much you would need to deduct to make switching worthwhile.

What this calculator simplifies

Surcharge (applicable above ₹50L) is intentionally out of scope here — use the full Income Tax Calculator for high-income surcharge modelling. The 80D cap is fixed at ₹25K (regular taxpayer); senior-citizen ₹50K bucket is not modelled.

Sources & method

Tax slabs, deductions, rebates and surcharge follow the rules notified by the Government of India for the selected year. Based on the Income Tax Department. See how we calculate.

Frequently Asked Questions

It depends on how much you actually deduct. The new regime has lower slab rates and a zero-tax band up to ₹12L taxable income (₹12.75L gross for salaried). The old regime offers itemised deductions (80C up to ₹1.5L, 80D up to ₹25K, 80CCD(1B) NPS up to ₹50K, 24(b) home loan interest up to ₹2L, HRA, LTA) that can knock taxable income down sharply. Rule of thumb at ₹15L gross: if your combined deductions clear roughly ₹4-6L the old regime usually wins, otherwise the new regime wins. The break-even depends on income level — at higher incomes the new regime's lower rates often beat even maximum old-regime deductions.

Part of Income Tax Calculators (FY 2026-27) — compare every related calculator in one place.