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Old vs new tax regime: the break-even by salary

For Tax Year 2026-27, the old regime costs less only when your deductions and exemptions beyond the standard deduction pass the break-even for your salary: ₹5,43,776 on ₹15 lakh, for example. Up to ₹12.75 lakh the new regime’s tax is nil.

Break-even by salary

Tax Year 2026-27, a resident below 60 with salary as the only income. Break-even: the deductions and exemptions beyond the standard deduction at which the old regime’s tax is lower. Open a salary to enter your own.

SalaryNew regime taxOld regime tax, standard deduction onlyBreak-even
₹10 lakh ₹0 ₹1,06,600 None: new is nil
₹12 lakh ₹0 ₹1,63,800 None: new is nil
₹13 lakh ₹26,000 ₹1,95,000 ₹6,87,526
₹14 lakh ₹81,900 ₹2,26,200 ₹5,18,776
₹15 lakh ₹97,500 ₹2,57,400 ₹5,43,776
₹16 lakh ₹1,13,100 ₹2,88,600 ₹5,68,776
₹17 lakh ₹1,30,000 ₹3,19,800 ₹6,08,346
₹18 lakh ₹1,50,800 ₹3,51,000 ₹6,41,686
₹19 lakh ₹1,71,600 ₹3,82,200 ₹6,75,016
₹20 lakh ₹1,92,400 ₹4,13,400 ₹7,08,346
₹21 lakh ₹2,14,500 ₹4,44,600 ₹7,37,516
₹22 lakh ₹2,40,500 ₹4,75,800 ₹7,54,186
₹23 lakh ₹2,66,500 ₹5,07,000 ₹7,70,846
₹24 lakh ₹2,92,500 ₹5,38,200 ₹7,87,516
₹25 lakh ₹3,19,800 ₹5,69,400 ₹8,00,016
₹30 lakh ₹4,75,800 ₹7,25,400 ₹8,00,016
₹40 lakh ₹7,87,800 ₹10,37,400 ₹8,00,016
₹50 lakh ₹10,99,800 ₹13,49,400 ₹8,00,016
₹54.52 lakh just above where surcharge starts ₹13,64,910 ₹16,39,470 ₹4,02,306
₹75 lakh ₹20,67,780 ₹23,42,340 ₹8,00,016
₹1 crore ₹29,25,780 ₹32,00,340 ₹8,00,016
₹1,04,42,000 just above where surcharge starts ₹32,17,360 ₹35,04,400 ₹3,92,426

What the table shows

  • Up to ₹12.75 lakh the new regime charges no tax, so the old regime can at best match it: deductions cannot take total income below nil.
  • In the table it is lowest, ₹3,92,426, on ₹1,04,42,000, and highest, ₹8,00,016, on ₹25 lakh, ₹30 lakh, ₹40 lakh, ₹50 lakh, ₹75 lakh and ₹1 crore.
  • Just above ₹50 lakh and ₹1 crore of income, where surcharge starts, the break-even drops for a stretch: ₹4,02,306 on ₹54.52 lakh, and ₹3,92,426 on ₹1,04,42,000. Between the table’s salaries it can differ: open your salary for its own.
  • s.123 payments (up to ₹1,50,000), your own NPS (up to ₹50,000) and health insurance for your family (up to ₹25,000) add up to ₹2,25,000: less than the break-even at every salary in the table. With interest on a home loan for a self-occupied house at its ₹2,00,000 limit, ₹4,25,000: enough at 2 of them. The exempt part of HRA counts too: work it out with the HRA calculator.

Break-even at 60 and over

The old regime’s nil slab covers the first ₹2,50,000 of taxable income below 60, ₹3,00,000 from 60 and ₹5,00,000 from 80, so the break-even is smaller. Age at any time during the tax year.

SalaryAge 60 to 79Age 80 or more
₹10 lakh None: new is nil None: new is nil
₹12 lakh None: new is nil None: new is nil
₹13 lakh ₹6,75,026 ₹6,25,026
₹14 lakh ₹5,06,276 ₹4,56,276
₹15 lakh ₹5,31,276 ₹4,81,276
₹16 lakh ₹5,56,276 ₹5,20,846
₹17 lakh ₹6,00,016 ₹5,66,686
₹18 lakh ₹6,33,346 ₹6,00,016
₹19 lakh ₹6,66,686 ₹6,33,346
₹20 lakh ₹7,00,016 ₹6,66,686
₹21 lakh ₹7,29,186 ₹6,95,846
₹22 lakh ₹7,45,846 ₹7,12,516
₹23 lakh ₹7,62,516 ₹7,29,186
₹24 lakh ₹7,79,186 ₹7,45,846
₹25 lakh ₹7,91,686 ₹7,58,346
₹30 lakh ₹7,91,686 ₹7,58,346
₹40 lakh ₹7,91,686 ₹7,58,346
₹50 lakh ₹7,91,686 ₹7,58,346
₹54.52 lakh ₹3,99,596 ₹3,89,596
₹75 lakh ₹7,91,686 ₹7,58,346
₹1 crore ₹7,91,686 ₹7,58,346
₹1,04,42,000 ₹3,89,386 ₹3,78,386

How this is worked out

The comparison

  1. New regime (s.202, the default): salary − the ₹75,000 standard deduction, taxed at its slabs with its rebate, surcharge and cess.
  2. Old regime (opting out under s.202(4)): salary − the ₹50,000 standard deduction − the deductions and exemptions you claim, taxed at its slabs for your age with its rebate, surcharge and cess.
  3. Break-even: the smallest total of deductions and exemptions at which the old regime’s tax is lower than the new regime’s. Each rupee that counts takes a rupee off taxable income.
From the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Finance Act, 2026. Rules checked 29 September 2026.

Assumptions

  • A resident individual, for Tax Year 2026-27 (FY 2026-27): income earned from 1 April 2026 to 31 March 2027.
  • Salary is the only income. Professional tax and employer NPS contributions are not included.
  • The figures are worked out by the same code as the income tax calculator, each time this page is opened.
Which regime applies if I don’t choose?

The new regime (s.202) is the default. To be taxed under the old regime you opt out of it under s.202(4).

What changed (latest: 1 April 2026)

The rules this page uses, by the date each took effect, newest first. Each was last checked against its official source on 29 September 2026.

  1. 17 changes
    • New-regime slab rates on taxable income
    • Old-regime slab rates: individuals below 60, and non-residents of any age
    • Old-regime slab rates: resident individuals aged 60 to 79
    • Old-regime slab rates: resident individuals aged 80 or more
    • Standard deduction on salary
    • Rebate, new regime
    • Rebate, old regime
    • Surcharge rates
    • Health and education cess
    • Rounding of total income and of tax payable/refund
    • Deduction for life insurance premia, provident fund and the other Schedule XV payments (s.123, formerly 80C)
    • Deduction for the individual's own NPS contribution (s.124(3), formerly 80CCD(1B))
    • Deduction for health insurance premia (s.126, formerly 80D)
    • Deduction for interest on bank, co-operative bank and post office deposits (s.153, formerly 80TTA and 80TTB)
    • Interest on a home loan for a self-occupied house (s.22(1)(b)–(c), capped by s.22(2); formerly s.24(b))
    • Employer NPS contribution deduction (s.124, formerly 80CCD(2))
    • Income-tax Act 2025 in force; "Tax Year" replaces previous year / assessment year

Mistakes we have fixed on any page are listed on Corrections.

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