Our Old vs New Regime guide covers the general rules. Here, we run four real income levels through both regimes with realistic deduction amounts, so you can see exactly where the crossover point tends to sit — and why the New Regime has become the better default for most people since the 2025 reforms.
All figures include the 4% cess and use FY 2025-26 slabs. "Old Regime deductions" below combine 80C, 80D, HRA, and home loan interest into one total figure for simplicity.
Example 1 — ₹6,00,000, minimal deductions
Example 2 — ₹10,00,000, moderate deductions
Example 3 — ₹15,00,000, high deductions
Example 4 — ₹30,00,000, very high deductions
The pattern
The crossover point tends to sit around ₹5–6 lakh in total deductions — below that, the New Regime's lower rates almost always win regardless of income level. Above it, particularly for those with a home loan and high HRA claims, the Old Regime starts to close the gap and can even come out ahead at higher incomes.
This is a meaningful shift from a few years ago, when the Old Regime was the better choice for most salaried employees with even modest deductions. The 2025 reforms significantly widened New Regime slabs and raised its rebate threshold, changing the math for the majority of taxpayers.
These are illustrative examples — plug in your exact numbers to be sure.
Compare your own income →These figures are illustrative examples based on simplified deduction assumptions and don't include surcharge for higher incomes. Your actual numbers depend on your specific deductions and income composition — verify with a CA or our Income Tax Calculator before deciding.