Old vs New Tax Regime Calculator (FY 2026-27)
Compare income tax liability side-by-side under Old vs New Regime to see exact tax savings.
Old Regime Saves More Tax
With your ₹2,05,800 in planned deductions (including PF, EPF & HRA), Old Regime saves you ₹0 per year (₹0/mo).
Old Regime Deductions & Exemptions
Configure your PF, EPF, HRA, NPS, and home loan deductions to see their exact tax-saving impact.
Section 80C & Retirals (Cap: ₹1,50,000)
Claimed: ₹1.28 L / ₹1,50,000Auto: 12% basic or ₹21.6k cap
Counted towards ₹1.5L 80C
Tax saving investments
National Pension System (NPS) Deductions
Exclusive deduction over and above Section 80C limit
House Rent Allowance (HRA) Exemption
Calculated Exemption: ₹0Defaults to 50% of basic
Total rent paid to landlord
50% cities: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad
Health, Home Loan & Statutory Retirals
Self + Senior Parents
Self-occupied property interest
No upper monetary ceiling
Eligible charitable donations
Auto: 5% of basic salary
Statutory state PT (typically ₹2,400)
NEW TAX REGIME (FY 2026-27)
Statutory DefaultOLD TAX REGIME
With All DeductionsTax & In-Hand Salary Side-by-Side Comparison
Comparing New Regime vs Old Regime for Total Annual Tax and Monthly In-Hand Cash.
Annual & Monthly Tax Comparison Summary
Understanding Tax Regime Selection in India
The Old Tax Regime is generally beneficial only when you have substantial statutory deductions and exemptions. If your total deductions fall below the breakeven threshold, the New Tax Regime is mathematically superior due to lower slab rates, an enhanced ₹75,000 standard deduction, and full Section 87A rebate.
When to Choose the Old Tax Regime?
- High Rent in Metro Cities (HRA Benefit): Paying high rent in Tier-1 metros allows massive HRA exemptions exceeding ₹2 Lakhs to ₹3 Lakhs annually.
- Full Section 80C Utilization: Maximum ₹1.5 Lakhs claimed through Employee PF, Employer EPF, PPF, and ELSS mutual funds.
- Section 24(b) Home Loan Interest: Deducting up to ₹2,00,000 per year on self-occupied housing loan interest.
- Section 80D Health Insurance: Claiming ₹25,000 to ₹1,00,000 for family and senior citizen parents.
- Section 80CCD(1B) NPS Contribution: Additional ₹50,000 exclusive retirement deduction.
Regime Comparison by Income Level (Benchmark Reference)
| Annual CTC | Recommended Regime | Min. Deductions for Old Regime* | Key Considerations |
|---|---|---|---|
| ₹5L | New Regime | Not applicable | Zero tax either way — the 87A rebate covers it. Choose the new regime and skip the proofs. |
| ₹10L | New Regime | ₹4.5L | The standard ₹4.75L stack already clears the bar, so the old regime can just win — but only if you genuinely claim all of 80C, 80D, NPS and ₹2L of home-loan interest. |
| ₹15L | Old Regime if you pay rent | ₹5.44L | You are about ₹69,000 short of the usual stack. Rent of roughly ₹12,000 a month covers it. This is where the old regime starts becoming affordable for renters. |
| ₹20L | Old Regime if rent is high | ₹7.09L | Gap of about ₹2.34L. You need roughly ₹27,800 a month in rent, or the ₹2L home-loan interest plus about ₹2.3L of 80G donations. |
| ₹25L | Old Regime with full planning | ₹8.00L | Break-even settles at ₹8L from here on. Rent of about ₹37,500 a month closes the ₹3.25L gap. Employer NPS is 14% of basic in the new regime against 10% in the old, which trims the old regime's edge. |
| ₹30L | Old Regime with full planning | ₹8.00L | Same ₹3.25L gap, now only 11% of CTC. Rent of about ₹39,600 a month covers it, and full metro HRA on a ₹15L basic is worth up to ₹7.5L. |
| ₹35L | Old Regime usually wins | ₹8.00L | Rent of about ₹41,700 a month closes the gap, well inside what the ₹8.75L HRA ceiling allows. Without rent, a home loan plus donations can still get there. |
| ₹40L | Old Regime usually wins | ₹8.00L | The ₹8L target is only 20% of CTC. Rent of about ₹43,750 a month covers the gap; the HRA ceiling here is ₹10L, so there is plenty of headroom. |
| ₹45L | Old Regime usually wins | ₹8.00L | Rent of about ₹45,800 a month closes it. At this income the deductions are a smaller share of pay, so the old regime is easier to justify, not harder. |
| ₹50L | Old Regime usually wins | ₹8.00L | Rent of about ₹47,900 a month covers the ₹3.25L gap. Surcharge begins just above this income, which raises the value of every deduction from here on. |
| ₹55L | Old Regime | ₹4.35L | The 10% surcharge above ₹50L pushes new-regime tax up sharply, so the break-even falls below the standard ₹4.75L stack. The old regime wins on the usual deductions alone, with no rent needed. |
| ₹60L | Old Regime | ₹7.70L | Surcharge applies to both regimes now. Rent of about ₹49,600 a month closes the remaining gap, and the ₹15L HRA ceiling leaves ample room. |
* Minimum total deductions for the old regime to match the new one, computed from the current slabs. The stack assumed above is the ₹50,000 standard deduction, ₹1.5L under 80C including employee PF, ₹25,000 under 80D, ₹50,000 under 80CCD(1B) and ₹2L of section 24(b) home-loan interest — ₹4.75L in all. Rent figures are what is needed on top of that stack, assuming basic is 50% of CTC and a city where 50% of basic is exempt. HRA exemption is the least of rent less 10% of basic, 50% of basic in the eight notified cities (40% elsewhere), and the HRA actually received. 80G allows 50% or 100% depending on the donee, so a ₹1L donation may count for only ₹50,000. Above ₹50L surcharge applies, which increases what every deduction is worth.
Key Takeaways
- For CTC up to ₹12.75 Lakhs, New Regime is unbeatable due to ₹0 effective tax.
- Middle income earners (₹12.75L to ₹25L) benefit more from New Regime unless claiming heavy HRA and housing loan interest.
- High earners (>₹30L) can achieve significant savings in Old Regime with structured tax planning across 80C, 80D, 24b, and HRA.
- Salaried individuals filing ITR-1/ITR-2 can switch between Old and New regimes every single year.
Regulatory References & Statutory Sources
Income Tax
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Old vs New Tax Regime Break-Even Point 2026: The Deduction Threshold Chart
Exact deduction break-even thresholds from ₹7.5L to ₹50L CTC, Section 87A rebate rules, and why 90%+ taxpayers benefit from New Regime.
Quick 1-Click Goal & Amount Presets
Long-Tail pSEO Target PresetsOld vs New Tax Regime Decision FAQs
Answers to common questions when choosing between the two Indian tax regimes.
Can I choose one regime for employer TDS and file my ITR under the other?
Yes. The regime declaration submitted to your employer is solely for monthly payroll TDS estimation. Salaried taxpayers can freely switch between Old and New regimes when filing their final ITR on the Income Tax e-filing portal before July 31st.
What happens if I miss the ITR filing deadline regarding regime selection?
If you file a belated return after the July 31st due date, you automatically lose the option to choose the Old Tax Regime. The Income Tax portal will calculate tax strictly under the default New Tax Regime.
Do freelancers and business owners have the same flexibility to switch regimes each year?
No. Individuals with business or professional income (filing ITR-3 or ITR-4) can opt out of the New Regime once in their lifetime using Form 10-IEA. If they switch back to the New Regime later, they cannot opt back into the Old Regime again.
Does switching to the New Regime mean my EPF or PPF interest becomes taxable?
No. Annual interest earned on your statutory EPF (up to ₹2.5 Lakhs employee contribution) and PPF remains completely tax-free under both regimes.