Which tax regime is better?

Neither, in general — it depends on how much you can deduct. This calculator gives you the crossover figure for your income, so the question becomes concrete: can you genuinely claim more than that? Below it the new regime is cheaper; above it the old one is.

What is the break-even deduction?

The level of deductions at which both regimes produce the same tax. It exists because the new regime's liability does not change with deductions while the old regime's falls, so the two cross exactly once at any given income.

Does this include HRA exemption?

No, and that matters. HRA is available under the old regime and would count towards beating the crossover, so anyone with a substantial HRA claim has a better case for the old regime than this calculator shows. Treat the crossover here as the figure to beat with 80C-type deductions alone.

Why does the crossover change when I change my salary?

Because the two regimes have different bands, different standard deductions and different rebate ceilings. The gap between them at zero deductions varies with income, so the deductions needed to close it vary too. The salary scenario shows the movement.

Can I switch regimes each year?

The rules on switching differ by taxpayer type and are procedural rather than arithmetic, so this calculator does not model them. Check the current position for your own category before assuming a choice is reversible.

Is the old regime always better at high incomes?

No. At very high incomes the old regime does eventually become cheaper, but only with deductions running into tens of lakhs — enough to drop taxable income below the surcharge thresholds. The crossover figure will show you how large, and it is usually far beyond what can actually be claimed.

Taxation · FINANCIAL TOOLS

Old vs New Tax Regime Calculator

Compare both regimes on your own figures, and see the level of deductions at which they cost the same.

Understand the calculation

Calculation logic, formula, example and guardrails behind the estimate.

How it works

Both regimes are computed by the same engine from the same ruleset, so the difference you see comes from the regimes themselves rather than from two different calculations. The deductions you enter are applied to the old regime only, because the new one does not allow them.

The headline figure is the crossover: the level of deductions at which the two regimes cost exactly the same. Below it the new regime is cheaper, above it the old one is. It is found by bisection, because the old regime's liability bends at every slab boundary, at the rebate ceiling and at each surcharge threshold.

More detail

That single number converts a vague comparison into a concrete question you can actually answer: can you genuinely claim more than this? If not, the new regime is cheaper on your figures.

The side-by-side table shows every step for both regimes, so you can see exactly where the two diverge rather than only the totals.

For the slab-by-slab working behind either figure, use the income tax calculator.

Formula

Find D such that Tax_old(income − D) = Tax_new(income)

Solved by bisection rather than algebraically: the old regime's tax is piecewise linear in deductions, with kinks at slab boundaries, the rebate ceiling and each surcharge threshold.

D: Deductions claimed — the crossover figure being solved for.
Tax_old: Old regime liability, which falls as deductions rise.
Tax_new: New regime liability, which does not depend on these deductions at all.

Worked example

A salaried taxpayer with ₹15,00,000 of gross salary and no other income, under FY 2026-27 rules.

01New regime taxable income₹15,00,000 − ₹75,000 = ₹14,25,000
02New regime tax₹97,500
03Old regime standard deduction₹50,000
04CrossoverThe deduction figure at which the old regime also costs ₹97,500

Whether the old regime helps depends on beating that crossover. At ₹1,50,000 of deductions most taxpayers at this income do not, which is why the new regime is usually cheaper here — but the number to check is your own, not the general case.

Important considerations

01
The crossover is the number, not the verdict
Asking which regime is better in general has no answer — it depends entirely on deductions. Asking whether you can claim more than a specific figure does have an answer, and it is one you can check against your own 80C, 80D and other claims.
02
It moves with income
The crossover is not a constant. Because both regimes have different bands, rebates and standard deductions, the figure shifts as income changes. A conclusion reached at one salary does not carry to another, which the salary scenario makes visible.
03
HRA would shift it further towards the old regime
This calculator omits HRA and other salary exemptions. Anyone claiming a substantial HRA exemption has more effective deductions than the figure entered here reflects, so the real crossover is easier to beat than shown.
04
Neither regime is recommended here
The calculator reports both figures and the crossover, and stops there. Which to choose also depends on how confident you are of sustaining those deductions and on the procedural constraints of switching, neither of which is arithmetic.

Limitations

Deductions are taken at face value. Each section has its own cap and conditions, and this calculator verifies none of them — an inflated figure will produce a misleading crossover.
HRA and other salary exemptions are not modelled. They are available under the old regime and would move the crossover in its favour, so the figure here is conservative for anyone claiming them.
Capital gains are excluded and are taxed at their own rates under both regimes.
The regime choice has procedural consequences for some taxpayers, including restrictions on switching in later years. This calculator addresses only the arithmetic.

Frequently asked questions

Common questions about the old vs new tax regime calculator and the assumptions behind it.

Next useful checks

Move from this result to the next decision without hunting through the full calculator list.

HRA Exemption CalculatorCheck salary exemption before final tax planning.Capital Gains Tax CalculatorEstimate special-rate tax outside salary slabs.

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Disclaimer

This calculator is provided for general information and planning only. It is not investment, tax or legal advice, and it does not take your personal circumstances into account. Outputs are estimates based on the assumptions stated on this page, exclude taxes and charges unless said otherwise, and market-linked returns are not guaranteed — the value of investments can fall as well as rise. Lending terms, rates and eligibility are decided by the lender. For advice on your own situation, speak to a qualified professional, several of whom you can consult on Finvestalk.