Old vs New Regime Break-Even Checker
How much total deductions do you need for the OLD regime to beat the NEW regime at your income? Enter your income and see the break-even instantly.
Old-regime tax at sample deduction levels
| Total deductions (incl. ₹50k std) | Old taxable income | Old regime tax |
|---|
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We map every deduction you qualify for and file your ITR in the regime that pays you less tax.
Disclaimer: Indicative estimate for a resident individual below 60 under FY 2026-27 (AY 2027-28) rules. Break-even ignores surcharge nuances at very high incomes. Actual tax may vary with capital gains and special-rate income. Rates per Finance Act 2025.
Why a break-even deduction matters
The new tax regime is now the default, and it charges lower rates but allows almost no deductions. The old regime charges higher rates but lets you claim 80C, 80D, HRA and home-loan interest. So the old regime only wins if your total deductions are large enough. The break-even deduction is the exact amount of deductions at which both regimes charge the same tax — claim more than that and the old regime becomes cheaper.
Tax slabs used — FY 2026-27
The new regime applies a ₹75,000 standard deduction and a rebate up to ₹12 lakh taxable; the old regime applies a ₹50,000 standard deduction and a rebate up to ₹5 lakh taxable. A 4% health & education cess is added in both.
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Worked example — income ₹15,00,000
At a gross income of ₹15 lakh, the new regime charges ₹97,500 in tax. To match that under the old regime you need total deductions of about ₹5,94,000 — which includes the ₹50,000 standard deduction, so roughly ₹5.44 lakh of 80C + 80D + HRA + home-loan interest on top. Claim more than that and the old regime pays off.
Key terms explained
Standard deduction
A flat deduction from salary that needs no proof — ₹75,000 in the new regime and ₹50,000 in the old regime for FY 2026-27. The old-regime ₹50,000 is already counted inside the break-even deduction figure.
Section 87A rebate
A rebate that makes tax nil for lower incomes — up to ₹12 lakh taxable in the new regime and up to ₹5 lakh taxable in the old regime. This is why the new regime is hard to beat at middle incomes.
Common old-regime deductions
The deductions that build toward break-even: 80C (PPF, ELSS, LIC — up to ₹1.5L), 80D (health insurance — up to ₹50k), HRA under 10(13A), and Section 24(b) home-loan interest (up to ₹2L).
Break-even deduction
The exact total deduction at which old-regime tax equals new-regime tax. Below it the new regime is cheaper; above it the old regime wins. Found here by scanning deduction levels until the old tax drops to the new-regime figure.
What is the break-even level of deductions?
The total deductions and exemptions at which the tax under both regimes is identical. Below it the new regime is cheaper; above it the old regime wins. The figure varies with your income level, which is why the tool computes it for your salary.
Which deductions are still allowed under the new regime?
The ₹75,000 standard deduction on salary, employer's NPS contribution under section 80CCD(2), the deduction for employers under 80JJAA, and — for a let-out property — interest under section 24(b). Most other deductions, including 80C, 80D, HRA and LTA, are not.
Which regime is the default?
The new regime. If you want the old one, you must actively opt for it — a salaried person by choosing it at the time of filing, and a taxpayer with business income by filing Form 10-IEA before the due date.
Can I switch between the regimes?
A salaried person with no business income can choose afresh every year. A person with business or professional income can opt out of the new regime once and return to it once, after which the choice is locked.
Does the choice affect anything besides the tax rate?
Yes. It changes what you should be investing in. If you settle on the new regime, tax-saving instruments chosen only for 80C stop making sense and the money is better allocated on merit.
Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.