New vs Old Regime Breakeven
FY 2026-27 · At What Deductions Does Old Regime Save More?
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📊 Tax Comparison Across Income Levels (with your deductions)
| Component | Old Regime | New Regime |
|---|---|---|
| Gross Income | ||
| Standard Deduction | − ₹ 75,000 | |
| Other Deductions | N/A | |
| Taxable Income | ||
| Tax (before cess) | ||
| 4% Cess | ||
| Total Tax | ||
| Monthly Tax |
⚖️ New vs Old Tax Regime Breakeven — FY 2026-27
This calculator helps you find the exact breakeven point — the total deduction amount at which switching between Old and New Tax Regime makes no difference. Below that amount the New Regime saves money; above it the Old Regime wins.
📐 The Breakeven Rule of Thumb (FY 2026-27)
Based on the latest tax slabs, the general breakeven thresholds are:
| Annual Salary | Breakeven Deductions | Verdict |
|---|---|---|
| Up to ₹12 Lakh | Any amount | New Regime — ₹0 tax |
| ₹12L – ₹15L | ~₹3.0 – ₹3.5 Lakh | New better if deductions below breakeven |
| ₹15L – ₹20L | ~₹3.5 – ₹4.0 Lakh | Old better with home loan + 80C + 80D |
| ₹20L – ₹30L | ~₹4.0 – ₹4.5 Lakh | Old wins with full deductions |
| Above ₹30L | ~₹4.5 Lakh+ | Old wins significantly with max deductions |
🆕 New Tax Regime — FY 2026-27 Slabs
- Up to ₹4L → 0% | ₹4–8L → 5% | ₹8–12L → 10% | ₹12–16L → 15%
- ₹16–20L → 20% | ₹20–24L → 25% | Above ₹24L → 30%
- Standard deduction: ₹75,000 | Rebate 87A: income up to ₹12L = ₹0 tax
📜 Old Tax Regime — FY 2026-27 Slabs
- Up to ₹2.5L → 0% | ₹2.5–5L → 5% | ₹5–10L → 20% | Above ₹10L → 30%
- Standard deduction: ₹50,000 | Rebate 87A: income up to ₹5L = ₹0 tax
- All deductions (80C, 80D, HRA, home loan, NPS) available
💡 Who Should Choose New Regime?
- ✔ Income below ₹12 lakh — zero tax under New Regime
- ✔ No home loan, no HRA, minimal deductions
- ✔ Fresh graduates, early career professionals
- ✔ Those who prefer simplicity over tax planning
📜 Who Should Choose Old Regime?
- ✔ Paying high rent in a metro city (large HRA exemption)
- ✔ Home loan with interest above ₹1.5–2 lakh per year
- ✔ Maximising 80C (₹1.5L) + 80D (₹50K) + NPS (₹50K)
- ✔ Total deductions above the breakeven threshold for your salary
❓ FAQ — New vs Old Regime Breakeven
1. What is the breakeven deduction for ₹15 lakh salary?
For a ₹15 lakh salary, the breakeven deductions are approximately ₹3.5–3.75 lakh. If your total deductions (80C + 80D + HRA + home loan) exceed this, the Old Regime saves more.
2. Is the New Regime always better for salary below ₹12 lakh?
Yes. For gross salary up to ₹12 lakh, the New Regime results in zero tax due to the ₹75,000 standard deduction and Section 87A rebate. No deductions are needed to achieve this.
3. Can I switch regime every year?
Salaried individuals without business income can switch between Old and New Regime every year at the time of filing their ITR. You should recalculate every year as your income and deductions change.
4. What deductions are NOT available in the New Regime?
HRA exemption, Section 80C, 80D, 80E, 80G, 80TTA, home loan interest (Sec 24b), and LTA are not available under the New Regime. Standard deduction of ₹75,000 is the only deduction allowed.
5. At what salary does the New Regime definitely win?
For income up to ₹12 lakh — New Regime always wins (zero tax). For income between ₹12–15 lakh with deductions below ₹3 lakh — New Regime typically wins. Above ₹15 lakh with maximum deductions — Old Regime usually wins.
👉 Based on Finance Act 2026 tax slabs. Surcharge applicable above ₹50 lakh. Always verify with a CA for final decision. Last updated: April 2026.