Tax Planning

Old vs New Tax Regime for Salaries Above ₹15 Lakhs: Break-Even Analysis

August 03, 2026 • 8 min read

For mid-to-senior software engineers and corporate executives earning above ₹15 Lakhs per year, choosing the wrong tax regime can cost over ₹50,000 in excess tax annually.

The Break-Even Deduction Threshold

Under current tax slabs, if your gross salary is ₹15 Lakhs or higher, the break-even deduction point is approximately ₹3.75 Lakhs to ₹4.00 Lakhs.

Deductions Below ₹3.75 Lakhs: The New Tax Regime is almost always cheaper due to lower baseline slabs and the ₹75,000 Standard Deduction.

Deductions Above ₹4.00 Lakhs: If you combine Section 80C (₹1.5L), HRA rent exemptions, Section 80D medical coverage, and Section 24(b) home loan interest, the Old Regime provides lower tax liability.

Test your custom salary components and total Chapter VI-A deductions side-by-side.

Impact on Mutual Fund SIPs and Home Loans

If you choose the Old Regime to maximize deductions, channel your Section 80C allowance into tax-saving ELSS funds. Model your long-term wealth growth on our SIP Calculator and analyze home loan deductions on our EMI Calculator.