Old vs New Tax Regime Calculator
Which regime leaves you with more money, for FY 2025-26 (AY 2026-27) — with the break-even deduction figure that decides it.
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Adjust the inputs on the left to see your better regime.
The regime question has a precise answer for your salary, and it is a single number: how much you would need to be claiming in deductions before the old regime beats the new one.
Below that figure, the new regime wins and nothing else matters. Above it, the old regime does.
A ₹15 lakh salary, worked through
| New regime | Old regime (₹2,00,000 deductions) | |
|---|---|---|
| Gross salary | ₹15,00,000 | ₹15,00,000 |
| Standard deduction | −₹75,000 | −₹50,000 |
| Other deductions | — | −₹2,00,000 |
| Taxable income | ₹14,25,000 | ₹12,50,000 |
| Tax including cess | ₹97,500 | ₹1,95,000 |
The old regime charges exactly twice as much, despite taxing ₹1,75,000 less income. Its rates are simply higher: 30% starts at ₹10,00,000 under the old regime and only at ₹24,00,000 under the new one.
The break-even is ₹5,43,750. That is how much you would need to be claiming — 80C plus 80D plus HRA plus home loan interest plus everything else combined — before the old regime matches the new one at this salary.
Why most salaried people fall short of break-even
The pieces available under the old regime, at their realistic maximums:
- 80C — ₹1,50,000, and it is shared with EPF, home loan principal, children's tuition and life insurance. Often already full without any new investment.
- 80D — ₹25,000 for your own health cover, ₹50,000 more for senior-citizen parents.
- Standard deduction — ₹50,000, but the new regime gives ₹75,000, so this is a net loss of ₹25,000.
- Section 24(b) — up to ₹2,00,000 of home loan interest on a self-occupied property. This is the big one.
- HRA exemption — no fixed cap; on a large rent in a metro this can be substantial.
- 80CCD(1B) — ₹50,000 extra for NPS.
Without a home loan or a large metro rent, most people land somewhere between ₹1,50,000 and ₹2,50,000. That is nowhere near ₹5,43,750, which is why the new regime is the better answer for the majority of salaried taxpayers.
Where the old regime still wins
Add a ₹2,00,000 Section 24(b) home loan interest deduction and a ₹3,00,000 HRA exemption to a full ₹1,50,000 of 80C and you are past ₹6,00,000 — comfortably above break-even. Someone paying a large rent in Delhi or Mumbai while servicing a home loan on a let-out property elsewhere is exactly the profile the old regime still serves.
The one that survives in the new regime
Almost every deduction disappears under the new regime, with one important exception: Section 80CCD(2), the deduction for your employer's contribution to your NPS, remains available.
If your employer offers NPS as part of the salary structure, restructuring some CTC into an employer NPS contribution gives you a deduction that works on the new regime, where nothing else does. It is one of very few remaining levers and is widely underused.
Practical notes
You may switch regimes each year if you have only salary income. If you have business or professional income, the choice is far more restricted — you can generally move out of the new regime only once.
Figures here are for FY 2025-26 (AY 2026-27). Slabs, the standard deduction and the 87A rebate all move in the Union Budget, so re-run this after each February before locking in a declaration.
Old vs New Regime — frequently asked questions
How do I decide between the old and new tax regime?
Find your break-even deduction — the total deductions at which the two regimes charge identical tax. At a ₹15,00,000 salary that figure is ₹5,43,750. If your realistic 80C, 80D, HRA and home-loan claims add up to less than that, the new regime wins and no amount of tax planning under the old regime will change it.
Why is the old regime worse even though it allows more deductions?
Because its rates are much higher and its standard deduction is smaller. The old regime hits 30% at ₹10,00,000 of taxable income; the new regime only at ₹24,00,000. It also gives ₹50,000 of standard deduction against the new regime’s ₹75,000. At ₹15,00,000 the old regime charges ₹1,95,000 with ₹2,00,000 of deductions, against ₹97,500 under the new one — twice as much despite taxing less income.
Which deductions do I lose under the new regime?
80C, 80D, HRA exemption, Section 24(b) home loan interest on a self-occupied property, 80CCD(1B), 80G, LTA and most other exemptions. What you keep is the ₹75,000 standard deduction, the ₹60,000 Section 87A rebate up to ₹12,00,000 of taxable income, and Section 80CCD(2) for your employer’s NPS contribution.
Is there any deduction that still works in the new regime?
Section 80CCD(2) — your employer’s contribution to your NPS, up to 14% of salary under the new regime. If your employer offers NPS in the salary structure, moving part of your CTC into it produces a deduction that survives where nothing else does. It is one of the few remaining tax-planning levers for a new-regime salaried taxpayer and is widely underused.
Can I switch between regimes every year?
If your income is only from salary, yes — you may choose afresh each assessment year, and you can even pick a different regime at filing from the one you declared to your employer. If you have business or professional income, the choice is far more restricted: you can generally opt out of the new regime only once, and returning to it closes the door again.
Who should still choose the old regime?
Someone whose deductions genuinely clear the break-even. The realistic profile is a taxpayer with a full ₹1,50,000 of 80C, a ₹2,00,000 Section 24(b) home loan interest claim, and a large HRA exemption from renting in Delhi, Mumbai, Kolkata or Chennai. Those three together comfortably exceed ₹5,00,000. Without a home loan or a substantial metro rent, it is very hard to get there.
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Results from this calculator are estimates for informational use only — not financial, medical, or professional advice. Read our full disclaimer before acting on any number you see here.