Old vs New Tax Regime Calculator (FY 2026-27)

Old vs New Tax Regime — Key Differences for FY 2026-27

Break-Even Deductions: Exactly When the Old Regime Wins

This is the only number that actually matters in the old vs new debate. For every income level, there is a break-even deduction amount — if your total old-regime deductions (HRA + 80C + 80D + home loan interest + NPS, excluding the standard deduction) cross it, the old regime saves you money. Below it, the new regime wins. Here is the break-even for a salaried person below 60:

All figures include 4% cess and assume the standard deduction is already applied in both regimes. Computed using the same engine as the calculator above.

Notice the reality check: the maximum most people can claim without a home loan is around ₹3 lakh (₹1.5 lakh 80C + ₹50,000 NPS + ₹75,000–1 lakh 80D). That is below the break-even at almost every income level. The old regime realistically wins only when you stack high HRA (big-city rent) plus ₹2 lakh home loan interest on top of full investments.

Want the salary-by-salary working with full math? Read the detailed comparison: Old vs New Tax Regime 2026 — numbers for ₹6L, ₹8L, ₹10L, ₹12L salary.

How to Use This Old vs New Tax Regime Calculator

1. Enter your annual income — your gross salary plus any other taxable income like FD interest or rent. Mark whether you are salaried (this applies the correct standard deduction to each regime automatically).
2. Fill the deductions you actually claim — 80C investments, health insurance, HRA exemption, home loan interest, and NPS. Leave anything you don't claim at zero. These only affect the old regime.
3. Read the verdict — the calculator shows which regime saves you more, the exact rupee difference, monthly TDS impact, and your personal break-even deduction amount.

That's it — three inputs, one answer. If you want to model HRA exemption automatically from rent paid, or add freelance income, use the full Income Tax Calculator FY 2026-27.

Tax Slabs Used in This Comparison (FY 2026-27)

New Regime Slabs

Old Regime Slabs (Below 60 Years)

The calculator also handles senior citizen (60–80) and super senior (80+) old-regime slabs, the Section 87A rebate in both regimes, marginal relief just above ₹12 lakh, surcharge on high incomes, and 4% health and education cess. Full slab tables for all age groups are on our Income Tax Calculator page.

Can You Switch Regimes Every Year?

Salaried (no business income): Yes. You pick a regime for TDS with your employer in April, but the final choice happens at ITR filing — you can switch every single year. Even if your employer deducted TDS under the new regime all year, you can still file under the old regime and claim a refund.

Business or professional income (including serious freelancing): Restricted. You must file Form 10-IEA before the ITR due date to opt for the old regime. And once you return to the new regime, you get only one more chance in your lifetime to go back to the old regime.

The new regime has been the default since FY 2023-24 — if you do nothing, your employer deducts TDS under new regime slabs. There is also constant speculation about the old regime being phased out entirely; we covered what that means for your filing in ITR Filing 2026: New Rules and the Future of the Old Regime.

Simple Decision Rules (If You Hate Calculators)

• Salary up to ₹12.75 lakh → New regime. Zero tax, zero paperwork. The old regime cannot beat ₹0 unless your deductions push taxable income below ₹5 lakh.
• No rent, no home loan → New regime, almost always. Your realistic deduction ceiling (~₹3 lakh) is below the break-even at every income.
• Metro rent + home loan + full 80C + NPS → Run the calculator. Above ₹14 lakh salary with ₹5–7 lakh total deductions, the old regime can genuinely win.
• Still choosing investments? If you stay in the new regime, invest for returns, not tax proof — compare ELSS, PPF, and NPS on merit.

One more thing most people miss: the choice is not permanent. Salaried taxpayers re-decide every April. A year with a new home loan or a rent hike can flip the answer — recheck annually.

Frequently Asked Questions — Old vs New Tax Regime