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Old vs New Tax Regime Calculator

Compare Old vs New tax regime for FY 2026-27. Enter your income and deductions to see exact tax under both — and the breakeven point where old regime starts winning.

Your Income

Not sure? Use our Salary Calculator to get this from your CTC.

Old Regime Deductions

Optional — only apply under Old regime

Claiming HRA under old regime? See your HRA exemption →

Calculations are illustrative — consult a CA for filing decisions.

You save ₹1,63,800/year with the New Regime.
Breakeven insight: Old regime would need 6,50,000 more in deductions (beyond what you've entered) to beat New regime at your income level.
New RegimeRecommended

Total Tax (Annual)

0

Taxable Income

₹11,25,000

Effective Rate

0.00%

Std. Deduction

₹75,000

Other Deductions

₹0

Old Regime

Total Tax (Annual)

1,63,800

Taxable Income

₹11,50,000

Effective Rate

13.65%

Std. Deduction

₹50,000

Other Deductions

₹0

Want your take-home from CTC instead? Try the Salary In-Hand Calculator →

How to use this comparison

  1. 1Enter your gross annual income This is your income before the standard deduction — from your salary slips, Form 16, or the Salary Calculator if you only know your CTC.
  2. 2Add any Old regime deductions you actually claim 80C investments, health insurance, HRA, or home loan interest — leave any of these at zero if they don't apply to you.
  3. 3Set your age band if you're a senior citizen This only changes the Old regime's basic exemption limit — the New regime has no senior citizen variant.
  4. 4Compare the two regime cards and read the breakeven line The winner callout tells you which regime saves more today; the breakeven insight tells you how much more you'd need to deduct for the other regime to catch up.

New vs Old regime: what actually changed

The New tax regime has been the default since AY 2024-25 — if you want to use the Old regime, you have to actively opt in every year at the time of filing (salaried employees only; business income has tighter switching rules).

The New regime's appeal comes from two changes: a higher standard deduction (₹75,000 vs ₹50,000) under the Old regime, and the ₹12 lakh rebate threshold under Section 87A, which zeroes out tax entirely for anyone with taxable income at or below that level. Combined, these two changes mean the New regime wins for most salaried taxpayers who don't have significant deductions to claim.

The Old regime only pulls ahead once deductions are substantial — typically ₹3.5 lakh or more combined, such as a maxed-out ₹1.5L Section 80C plus home loan interest or a large HRA claim. Below that threshold, the New regime's lower slab rates and bigger standard deduction usually win outright.

If you want to work backward from your CTC to your gross income, use the Salary In-Hand Calculator. For a full worked example of how the two regimes diverge on a real ₹12L salary, read Why Your In-Hand Salary Is Less Than Your CTC →.

Frequently asked questions

Which tax regime is the default?

The New regime has been the default since AY 2024-25. If you want the Old regime, you must explicitly opt in when filing. Salaried employees can switch between regimes every year at the time of filing their return, but those with business or professional income face restrictions on switching back once they've opted for the new regime.

How much in deductions do I need for the old regime to be better?

It depends on your income level, but as a rule of thumb, you typically need ₹3.5 lakh or more in combined deductions (80C maxed at ₹1.5L plus home loan interest or a large HRA claim) before the old regime starts winning. Use the breakeven number this calculator shows for your exact income — it tells you precisely how much more you'd need to claim.

Can I switch regimes every year?

If you're a salaried employee with no business income, yes — you can choose New or Old regime freshly every year when filing your return. If you have business or professional income, switching is more restricted: once you opt out of the new regime, you generally get only one opportunity to switch back.

Is HRA available in the new regime?

No. HRA exemption, Section 80C investments (PPF, ELSS, LIC), Section 80D health insurance premiums, and home loan interest on a self-occupied property under Section 24(b) are all available only under the Old regime. The New regime offers a higher standard deduction and lower slab rates instead, with almost no other exemptions.

What is the ₹12 lakh rebate in the new regime?

Under Section 87A in the new regime for FY 2026-27, if your taxable income (after the ₹75,000 standard deduction) is ₹12 lakh or below, a rebate of up to ₹60,000 wipes out your entire tax liability. Just above ₹12 lakh, marginal relief ensures your effective tax doesn't jump sharply — it's capped at the amount your income exceeds ₹12 lakh by.