An old and new tax regime calculator gives you the numbers. What it can't give you is the story: when does the winner flip?
Here are four real salaried profiles, run through the FY 2025-26 (AY 2026-27) engine. Same numbers you'd get from any correct old and new tax regime calculator, laid out so you can see where you fit.
Profile 1 — Priya, ₹8 lakh CTC, no home loan, minimal deductions
Just starting out. Rents a shared flat in Bangalore. EPF ₹57,600. No home loan. No health insurance yet. Total 80C: ₹57,600 (just EPF).
| Old Regime | New Regime | |
|---|---|---|
| Gross | ₹8,00,000 | ₹8,00,000 |
| Std deduction | −₹50,000 | −₹75,000 |
| 80C (EPF) | −₹57,600 | — |
| Taxable | ₹6,92,400 | ₹7,25,000 |
| Tax before rebate | ₹50,480 | ₹16,250 |
| 87A rebate | — | Fully applied |
| Final tax (incl. cess) | ₹52,499 | ₹0 |
Winner: New regime by ₹52,499. This is straightforward — Priya doesn't have enough deductions to make the old regime work. The ₹12L rebate in the new regime does the heavy lifting.
Profile 2 — Rahul, ₹15 lakh CTC, home loan + HRA
Mid-career. Renting in Mumbai (rent ₹35,000/month), also has a housing loan in Pune (annual interest ₹1.8 lakh). EPF ₹90,000. LIC ₹40,000. Health insurance ₹18,000.
Total old-regime deductions: HRA exemption ₹2.16 lakh + 80C ₹1.30 lakh + 80D ₹18,000 + 24(b) ₹1.80 lakh = ₹5.44 lakh.
| Old Regime | New Regime | |
|---|---|---|
| Gross | ₹15,00,000 | ₹15,00,000 |
| Std deduction | −₹50,000 | −₹75,000 |
| Deductions | −₹5,44,000 | — |
| Taxable | ₹9,06,000 | ₹14,25,000 |
| Final tax (incl. cess) | ₹95,368 | ₹97,500 |
Winner: Old regime by ₹2,132. It's a coin flip. If Rahul's landlord raises rent, his HRA exemption grows and old regime clearly wins. If he pays off the home loan early, new regime wins. Worth re-running every April.
Profile 3 — Neha, ₹25 lakh CTC, senior IC, dual insurance
Senior professional. Own house (loan paid off). Rents in Bangalore ₹50,000/month. EPF ₹1.44 lakh. PPF ₹1.50 lakh. Health insurance ₹75,000 (self + senior citizen parents). NPS 80CCD(1B) ₹50,000.
Old-regime deductions: HRA exemption ₹3.60 lakh (approx) + 80C capped at ₹1.50 lakh + 80D ₹75,000 + 80CCD(1B) ₹50,000 = ₹6.35 lakh.
| Old Regime | New Regime | |
|---|---|---|
| Gross | ₹25,00,000 | ₹25,00,000 |
| Std deduction | −₹50,000 | −₹75,000 |
| Deductions | −₹6,35,000 | — |
| Taxable | ₹18,15,000 | ₹24,25,000 |
| Final tax (incl. cess) | ₹3,56,148 | ₹3,90,000 |
Winner: Old regime by ₹33,852. The old regime wins clearly here because Neha is fully using every available deduction. Stack HRA + full 80C + 80D + NPS(1B), and the deductions overwhelm the new regime's simpler slabs.
Profile 4 — Vikram, ₹40 lakh CTC, high earner, house owner
Senior leadership. Lives in the house he owns (no HRA claim possible for the same city). Home loan interest ₹2 lakh (₹24b limit). EPF ₹2.40 lakh (capped at 80C limit anyway). No PPF beyond that. Health insurance ₹40,000.
Old-regime deductions: 80C ₹1.50 lakh + 80D ₹40,000 + 24(b) ₹2 lakh = ₹3.90 lakh.
| Old Regime | New Regime | |
|---|---|---|
| Gross | ₹40,00,000 | ₹40,00,000 |
| Std deduction | −₹50,000 | −₹75,000 |
| Deductions | −₹3,90,000 | — |
| Taxable | ₹35,60,000 | ₹39,25,000 |
| Final tax (incl. cess) | ₹8,52,464 | ₹8,49,000 |
Winner: New regime by ₹3,464. Barely. At ₹40L income, the 30% slab is running under both regimes for most of Vikram's salary. Because he can't claim HRA (owns the house he lives in), his old-regime deductions max out around ₹3.9L — right around the crossover threshold.
The pattern from the four profiles
- Under ₹12.75L gross: new regime almost always wins because of the ₹12L rebate.
- ₹15L – ₹25L with home loan + HRA + full 80C: old regime wins, sometimes by ₹40,000–₹1 lakh.
- ₹15L – ₹25L without HRA (own house, no home loan): new regime wins.
- ₹30L+ with maxed deductions: old regime wins if you have HRA; new regime wins if you don't.
- ₹50L+: the surcharge on both regimes kicks in; run the exact numbers.
The break-even line is not the same salary for everyone. It moves with your specific deductions.
How to run your own numbers
Use our FY 2025-26 old vs new tax regime calculator. Enter your CTC, pick the regime, and enter your total old-regime deductions in the deductions field (HRA + 80C + 80D + 24(b) + any NPS).
Compare the two tax numbers. If the difference is under ₹5,000 either way, pick the new regime — it's simpler and one less thing to track for investment proofs. If old regime is winning by more than ₹10,000, keep old.
Redo this check every April. Your rent, home loan, health insurance and salary all change — and so does your winning regime.
For the switching mechanics (who can switch, how often), see our old vs new tax regime guide.