New Regime Break-Even Calculator
Instead of comparing two numbers, find the exact deduction threshold where the old regime starts winning for your income — then check it against what you actually claim.
Break-Even Deduction Amount
Old regime starts winning once your total deductions cross this amount.
Based on Your Actual Deductions
Old Regime Tax vs New Regime Tax, by Deduction Amount
| Deductions Claimed | Old Regime Tax | New Regime Tax | Better Regime |
|---|---|---|---|
| ₹0 | ₹2.57 L | ₹97,500 | New |
| ₹50,000 | ₹2.42 L | ₹97,500 | New |
| ₹1 L | ₹2.26 L | ₹97,500 | New |
| ₹1.50 L | ₹2.11 L | ₹97,500 | New |
| ₹2 L | ₹1.95 L | ₹97,500 | New |
| ₹2.50 L | ₹1.79 L | ₹97,500 | New |
| ₹3 L | ₹1.64 L | ₹97,500 | New |
| ₹3.50 L | ₹1.48 L | ₹97,500 | New |
| ₹4 L | ₹1.33 L | ₹97,500 | New |
| ₹4.50 L | ₹1.17 L | ₹97,500 | New |
| ₹5 L | ₹1.07 L | ₹97,500 | New |
| ₹5.50 L | ₹96,200 | ₹97,500 | Old |
| ₹6 L | ₹85,800 | ₹97,500 | Old |
| ₹6.50 L | ₹75,400 | ₹97,500 | Old |
| ₹7 L | ₹65,000 | ₹97,500 | Old |
| ₹7.50 L | ₹54,600 | ₹97,500 | Old |
| ₹8 L | ₹44,200 | ₹97,500 | Old |
How the Break-Even Point Works
Most people compare old vs new regime by plugging in their actual deductions once and seeing which wins. That works, but it doesn't tell you how close the decision was — or what would change it. This calculator instead holds your income fixed and asks: as deductions rise from zero, at what point does the old regime's higher rates get outweighed by those deductions?
Because the new regime has no deductions to plug in, its tax is a single fixed number for your income. The old regime's tax falls steadily as you add more deductions — so the two lines cross exactly once. That crossing point is your break-even: claim less than that in deductions, and the new regime wins; claim more, and the old regime wins. For most middle-income salaried employees in FY 2025-26, this break-even typically falls somewhere between ₹3.5 lakh and ₹5 lakh of total deductions, though it shifts meaningfully with income level.
Frequently Asked Questions
What is the break-even deduction amount?
It's the exact total deduction amount at which the old regime's tax bill drops to match the new regime's tax bill. Below that amount, the new regime wins (lower base rates make up for the missing deductions); above it, the old regime wins because your deductions outweigh the rate difference.
Why does the break-even point change with income?
Because the new and old regime slabs have different rates at different income levels. At lower incomes, the gap between the two regimes' tax is small, so even modest deductions can tip the balance to the old regime. At higher incomes, the new regime's lower rates create a bigger head start, so you need much larger deductions to catch up.
What counts toward my total deductions for this comparison?
Everything you'd claim under the old regime: Section 80C investments (PPF, ELSS, EPF, life insurance, up to ₹1.5 lakh), HRA exemption, Section 80D health insurance premiums, home loan interest under Section 24(b), NPS under 80CCD(1B), and any other Chapter VI-A deductions. Add them all up and compare to the break-even figure.
Can I switch tax regimes every year?
Salaried employees without business income can choose their regime freely every year when filing their ITR, regardless of what they declared to their employer for TDS purposes. If you have business or professional income, switching back to the old regime after opting for the new one has restrictions — you can generally do it only once.