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 Deductions & Exemptions
Configure your PF, HRA, NPS, and home loan deductions to see their exact tax-saving impact.
PF & Section 80C (₹1,50,000 cap; employer PF not included)
Claimed: ₹1.50 L / ₹1,50,000Auto: 12% of basic; counts in 80C
Company's share — not part of 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
₹25,000 each for you and your parents; ₹50,000 for a side that is 60+
Self-occupied property interest
No upper monetary ceiling
Qualifying amount, after the 50% / 100% limit
Auto: 4.81% of basic (15/26 of a month's basic per year)
Statutory state PT (typically ₹2,400; capped at ₹2,500)
NEW TAX REGIME (FY 2026-27)
Statutory DefaultOLD TAX REGIME
With All DeductionsNew Regime is More Beneficial
New Regime saves you ₹79,922 per year (₹6,660/mo) with simplified tax calculations and zero investment lock-in.
Tax & 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 your own (employee) PF, 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 | ₹3.66L | New-regime tax is already zero here. The old regime also reaches zero only with ₹3.66L of deductions, so switching gains nothing — stay in the new regime. |
| ₹15L | Old Regime if you pay rent | ₹5.13L | About ₹88,000 more than the usual ₹4.25L stack. Rent of roughly ₹13,600 a month covers it. This is where the old regime starts to pay for renters. |
| ₹20L | Old Regime if rent is high | ₹6.53L | A gap of about ₹2.28L over the stack. You need roughly ₹27,400 a month in rent, or other deductions of that size such as 80G donations. |
| ₹25L | Old Regime with full planning | ₹7.70L | A gap of about ₹3.45L. Rent of about ₹39,200 a month closes it. 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 | Break-even settles at ₹8L from here. The ₹3.75L gap is 12.5% of CTC; rent of about ₹43,800 a month covers it, well inside the ₹7.5L HRA ceiling on a ₹15L basic. |
| ₹35L | Old Regime usually wins | ₹8.00L | Rent of about ₹45,900 a month closes the ₹3.75L gap, inside the ₹8.75L HRA ceiling. Without rent, the gap has to come from other deductions. |
| ₹40L | Old Regime usually wins | ₹8.00L | The ₹8L target is 20% of CTC. Rent of about ₹48,000 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 ₹50,000 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 ₹52,100 a month covers the ₹3.75L gap. Taxable income is still under ₹50L in both regimes, so no surcharge yet. |
| ₹55L | Old Regime usually wins | ₹8.00L | Rent of about ₹54,200 a month covers the gap. Salary after employer PF and gratuity is just over ₹50L, but taxable income in both regimes stays below the surcharge line. |
| ₹60L | Old Regime | ₹4.32L | The 10% surcharge above ₹50L of taxable income pushes new-regime tax up, so the break-even drops to ₹4.32L — about ₹7,000 above the usual stack. Rent above roughly ₹25,600 a month, or a small 80G donation, closes it. |
* Minimum deductions, beyond the ₹50,000 standard deduction everyone gets, for the old regime to match the new one, computed from the current slabs. CTC is split as on the calculator: basic 50%, with employer PF (12% of basic) and gratuity (4.81% of basic) removed before tax. The stack assumed is ₹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 — ₹4.25L in all. Rent figures are what is needed on top of that stack in 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 of taxable income 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
Compare calculations across closely related financial tools in this category.
Direct Peer & Companion Calculators
6 tools available80C Tax-Saving & Exemption Solutions
Reduce your tax liability to ₹0 with government-backed 80C & 80CCD schemes.
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.