What is the rough salary where the old regime stops being worth it?

There is no single figure, because it depends entirely on what you claim. As a rule of thumb, if your total deductions are under about ₹2 lakh the new regime is almost always cheaper. Above ₹3.75 lakh the old regime usually wins. Between the two, calculate it.

Does the employer PF contribution count as a deduction?

Your own contribution counts under 80C in the old regime. Your employer contribution is not part of your taxable salary in the first place, up to 12% of basic, so it is not a deduction you claim.

Which regime does my employer use if I say nothing?

The new one. It has been the default since FY 2023-24. If you want the old regime you have to declare it, and you should do it at the start of the year so your monthly TDS is right.

Old vs new tax regime calculator

There is no regime that is better for everybody. There is only a break-even point, and which side of it you sit on.

The new regime has lower rates and one deduction. The old regime has higher rates and a long list of deductions. So the whole question is: do you claim enough to pay for those higher rates? This calculator answers that with a number rather than an opinion.

The new regime is cheaper

₹1,06,600

The old regime wins once your deductions reach ₹6,50,000

Tax under the new regime: ₹1,50,800
Tax under the old regime: ₹2,57,400
Difference: ₹1,06,600
Taxable income, new regime: ₹17,25,000
Taxable income, old regime: ₹14,50,000
Break-even deductions: ₹6,50,000

Everything above is worked out in your browser. Nothing you type is sent to us or saved anywhere.

How this is worked out

Tax is calculated twice on the same gross salary, once under each set of slabs.
The new regime gets a ₹75,000 standard deduction and nothing else. The old regime gets ₹50,000 plus whatever you enter.
Both include the Section 87A rebate, surcharge above ₹50 lakh and 4% cess.
The break-even figure is found by raising the old-regime deduction in ₹10,000 steps until its tax bill drops to or below the new regime.

What this does not cover

Deductions are not free money. ₹1.5 lakh of 80C means ₹1.5 lakh actually locked into PPF, ELSS or insurance for years.
HRA exemption depends on your rent and your city, so it is not a number you can simply decide on. Work it out properly first.
If you have business or professional income, switching back to the new regime after leaving it is restricted. Salaried employees have no such limit.

Questions people ask

What is the rough salary where the old regime stops being worth it?: There is no single figure, because it depends entirely on what you claim. As a rule of thumb, if your total deductions are under about ₹2 lakh the new regime is almost always cheaper. Above ₹3.75 lakh the old regime usually wins. Between the two, calculate it.
Does the employer PF contribution count as a deduction?: Your own contribution counts under 80C in the old regime. Your employer contribution is not part of your taxable salary in the first place, up to 12% of basic, so it is not a deduction you claim.
Which regime does my employer use if I say nothing?: The new one. It has been the default since FY 2023-24. If you want the old regime you have to declare it, and you should do it at the start of the year so your monthly TDS is right.

Where these figures come from

Rates and rules on this page were last checked against the source on 31 August 2026. Tax law changes; check the source before you rely on a number for a decision.

Related calculators

Running these numbers because you are weighing a move? See what is open right now.