Salary-wise comparison. Exact break-even deduction amounts. The answer for every income level — using Income Tax Department AY 2026-27 public guidance and visible assumptions.
New regime vs old regime with typical deductions: 80C ₹1.5L + 80D ₹25K + standard deduction. Real numbers, no estimates.
| Salary (Gross) | New Regime Tax | Old Regime Tax* | Winner | Savings |
|---|---|---|---|---|
| ₹6L | ₹0 | ₹0 | 🆕 New | ₹0 |
| ₹8L | ₹0 | ₹28,600 | 🆕 New | ₹28,600 |
| ₹10L | ₹0 | ₹70,200 | 🆕 New | ₹70,200 |
| ₹12L | ₹0 | ₹1,11,800 | 🆕 New | ₹1,11,800 |
| ₹15L | ₹97,500 | ₹2,02,800 | 🆕 New | ₹1,05,300 |
| ₹20L | ₹1,92,400 | ₹3,58,800 | 🆕 New | ₹1,66,400 |
| ₹30L | ₹4,75,800 | ₹6,70,800 | 🆕 New | ₹1,95,000 |
| ₹50L | ₹10,99,800 | ₹12,94,800 | 🆕 New | ₹1,95,000 |
*Old regime with standard deduction ₹50K + 80C ₹1.5L + 80D ₹25K. HRA and home loan not included. Source: Income Tax Department guidance · official Income Tax Department guidance.
This is the total deduction amount at which old regime becomes better than new regime. If your total deductions exceed this, choose old regime. If they don't, choose new regime.
| Salary | Break-Even Deductions | Verdict if you invest ₹80C + ₹80D |
|---|---|---|
| Up to ₹12.75L | N/A — zero tax either way | New regime wins (zero tax) |
| ₹15L | ~₹1.75L total deductions | New regime — unless you have HRA |
| ₹20L | ~₹2.5L total deductions | Borderline — run your numbers |
| ₹25L | ~₹3.5L total deductions | Old regime if you have 80C+HRA+home loan |
| ₹30L+ | ~₹4L+ total deductions | Old regime often better at high salaries |
| Deduction / Exemption | New Regime | Old Regime |
|---|---|---|
| Standard deduction (salaried) | ✓ ₹75,000 | ✓ ₹50,000 |
| Section 80C (PPF, ELSS, LIC, PF) — max ₹1.5L | ✗ Not available | ✓ Up to ₹1,50,000 |
| Section 80D (health insurance) | ✗ Not available | ✓ ₹25K self / ₹50K with senior parents |
| HRA exemption (rent paid) | ✗ Not available | ✓ 50% for eligible metro cities, 40% others; verify current official city category |
| Home loan interest (Section 24) | ✗ Not available | ✓ Up to ₹2,00,000 |
| NPS (80CCD 1B) extra ₹50K | ✗ Not available | ✓ ₹50,000 extra |
| Leave Travel Allowance (LTA) | ✗ Not available | ✓ 2 trips in 4 years |
| Section 87A rebate (zero tax up to ₹12L) | ✓ ₹60,000 (if taxable ≤ ₹12L) | ✓ ₹12,500 (if taxable ≤ ₹5L) |
| Employer perquisites / allowances — verify Form 16 treatment | ✓ Available | ✓ Available |
Source: Income Tax Department guidance and Form 16 verification
Salaried employees: Yes — you can switch between new and old regime every year when filing ITR. The new regime is treated as the default regime for many individual taxpayers unless the old regime is opted where permitted. To use old regime, actively opt for it in your ITR form.
Self-employed / business owners: You can switch once. After opting out of the new regime, you cannot return to it easily. Choose carefully.
Mid-year switch: You can tell your employer which regime to use for TDS during the year. Switch at ITR time if needed. If you've asked your employer to use old regime but file under new regime, you'll get a refund (and vice versa).
Maintained by the RupeeCalc editorial workflow. Last checked: 29 May 2026. This page gives informational estimates only; verify official sources, your own documents, and a qualified professional before filing taxes, taking loans, investing, invoicing, or making compliance decisions.