Regime Switching Analyzer
Find your optimal tax regime and understand exactly when switching makes financial sense.
Updated for FY 2026-27 | Budget 2026 rules
Old Regime
- Higher tax slabs
- All deductions allowed (80C, 80D, HRA, etc.)
- Standard deduction: Rs 50,000
- Best if you have high deductions
New Regime
- Lower tax slabs
- Most deductions NOT allowed
- Standard deduction: Rs 75,000
- Best if you have low deductions
Breakeven Analysis
Enter your income to find the deduction amount where Old Regime becomes better than New Regime.
Multi-Year Regime Strategy
Should you stay in one regime or switch based on life changes? Enter your projected scenarios.
When to Choose Which Regime?
Choose Old Regime If:
- You have a home loan with interest > Rs 2L/year
- You pay rent and can claim HRA exemption
- You invest heavily in 80C (PPF, ELSS, LIC)
- You have health insurance premiums (80D)
- Your total deductions exceed the breakeven amount
Choose New Regime If:
- You don't have significant deductions
- You live in your own house (no HRA)
- You prefer simplicity over tax planning
- You're a fresher with limited investments
- Your income is below Rs 12L (full rebate under 87A)
Key Differences - FY 2026-27
| Parameter | Old Regime | New Regime |
|---|---|---|
| Standard Deduction | Rs 50,000 | Rs 75,000 |
| Section 80C | Up to Rs 1.5L allowed | Not allowed |
| Section 80D (Health Insurance) | Up to Rs 25K/50K allowed | Not allowed |
| HRA Exemption | Allowed | Not allowed |
| Home Loan Interest (24b) | Up to Rs 2L allowed | Not allowed |
| NPS (80CCD) | Up to Rs 50K extra allowed | Only employer contribution allowed |
| Rebate u/s 87A | Rs 12,500 (if income ≤ Rs 5L) | Rs 60,000 (if income ≤ Rs 12L) |