Old vs New Regime Break-Even
The deduction level at which the old regime stops costing more than the new one.
Count everything the old regime allows and the new one does not: section 123 (ex-80C), the extra NPS under 124, section 126 health premiums, HRA exemption, and home-loan interest. Leave out the standard deduction — both regimes have one, and it is applied for you.
- New regime — ₹75.00K standard deduction, nothing else
- ₹1,13,100.00
- Old regime — ₹50.00K plus your ₹2.00L
- ₹2,26,200.00
- Old regime
- New regime
FY 2026-27 (AY 2027-28). The break-even is solved numerically rather than algebraically, because the old regime's ₹5 lakh rebate is a hard cliff with no marginal relief — unlike the new regime's, which has it — so the two curves do not invert cleanly. One consequence worth knowing: the break-even is not a straight line in income. It falls from about ₹7.25 lakh at ₹12.75 lakh of gross salary to a low near ₹5 lakh at about ₹13.5 lakh, then climbs again, flattening at exactly ₹8 lakh once both regimes sit in the 30% bracket. That dip is the new regime's own marginal relief holding its tax down, which makes it briefly harder to beat. Two things this does not model: your employer's NPS contribution, which survives into the new regime at up to 14% of basic plus dearness allowance against 10% in the old one and so quietly favours the new regime; and income taxed at special rates, such as capital gains, where neither regime's rebate applies. Old-regime slabs are for an individual below 60.
Embed this calculator on your site
Paste this where you want it. Keep the credit line under the frame — that is the part that links back.
Independent · No commissions · No fund-house data — how the numbers are computed
How it works
The new regime has wider slabs, a larger standard deduction of ₹75,000 and a rebate that takes tax to zero up to ₹12 lakh of taxable income, but it allows almost no deductions. The old regime has narrower slabs and a ₹50,000 standard deduction, and permits section 80C, section 80D, HRA and home-loan interest. Whether the old regime is worth choosing therefore comes down to a single number: how many deductions you can actually claim.
This calculator finds that number — the deduction total at which the two regimes cost exactly the same at your income. Above it the old regime is cheaper; below it the new one is. It solves numerically rather than algebraically, because the old regime's ₹5 lakh rebate is a hard cliff with no marginal relief, so the two tax curves do not invert cleanly.
The break-even is not a straight line in income, which surprises people. It falls from around ₹7.25 lakh at ₹12.75 lakh of gross salary to a low near ₹5 lakh at roughly ₹13.5 lakh, then rises again and settles at exactly ₹8 lakh once both regimes are in the 30% bracket. The dip is the new regime's own marginal relief holding its tax down over that stretch, which makes it briefly harder to beat.
Find D such that tax(gross - ₹50,000 - D, old regime) = tax(gross - ₹75,000, new regime). Solved by bisection over D.D counts only deductions the old regime allows and the new one does not — section 123 (ex-80C), the extra NPS under 124, section 126 premiums, HRA exemption and home-loan interest. The standard deduction is excluded because both regimes have one, at different amounts, and those are applied for you.
Frequently asked questions
How many deductions do I need for the old regime to win?
At most salary levels above about ₹14 lakh, somewhere between ₹5 lakh and ₹8 lakh, settling at exactly ₹8 lakh once you are into the 30% bracket. Realistic deductions for a salaried person — ₹1.5 lakh under section 80C, ₹50,000 for NPS, ₹25,000 to ₹75,000 for health premiums, and ₹2 lakh of home-loan interest — usually land between ₹4.5 lakh and ₹5.5 lakh, which is why the new regime wins for most people.
Can I switch regimes every year?
If your income is from salary, capital gains or other sources, yes — you choose in the return you file, provided you file it by the due date. If you have business or professional income the rules are stricter: you file a form to opt out, and once you have withdrawn from the new regime and later returned to it, you cannot opt out again. Missing the filing deadline with business income locks you into the new regime for that year.
Why does the break-even go down before it goes up?
Because of marginal relief on the new regime's rebate. Between about ₹12.75 lakh and ₹13.5 lakh of gross salary, the new regime's tax is capped at the income above ₹12 lakh, which holds it artificially low. A low target is harder for the old regime to match, so the deductions needed rise. Once relief stops applying, the new regime's tax jumps to its full slab amount and the break-even falls back before climbing steadily.
Does an employer NPS contribution change the answer?
It tilts the comparison toward the new regime, and this calculator does not model it. The employer's contribution is deductible in both regimes, but at up to 14% of basic plus dearness allowance under the new regime against 10% under the old one. For anyone with a corporate NPS benefit that difference is a structural advantage to the new regime that no amount of other deductions offsets.
Go further
The slab-by-slab computation behind both sides of this comparison.
Total up the biggest old-regime deduction before checking the break-even.
Health premiums add to the deductions weighed here.
Turn a CTC into the gross salary figure this calculator starts from.