Old vs New Tax Regime Calculator

Compare estimated take-home salary under both regimes.

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Old Regime

Monthly In-Hand

₹77,435

Annual tax: ₹95,522

Taxable income: ₹8,96,740

New Regime

Monthly In-Hand

₹85,395

Annual tax: ₹0

Taxable income: ₹10,24,140

Frequently Asked Questions: Old vs New Tax Regime

What is the breakeven deduction threshold between Old and New Tax Regime for FY 2026-27?

For most middle-income earners (₹10 Lakh to ₹20 Lakh CTC), you need total deductions (80C + 80D + HRA + Home Loan Interest) exceeding ₹3.75 Lakh to ₹4.25 Lakh for the Old Tax Regime to deliver a lower tax liability than the New Tax Regime.

What is the standard deduction in Old vs New Regime?

Under the New Tax Regime (Section 115BAC), the standard deduction for salaried individuals is ₹75,000. Under the Old Tax Regime, the standard deduction is ₹50,000.

Can I switch between Old and New Tax Regime every financial year?

Yes, salaried employees with no business or professional income can switch between the Old and New Tax Regimes every year at the time of filing their Income Tax Return (ITR).

Is tax zero up to ₹7 Lakh in the New Tax Regime?

Yes. With the Section 87A rebate and ₹75,000 standard deduction, resident individuals earning up to ₹7.75 Lakh annual gross taxable salary pay zero income tax under the New Tax Regime.