Income Tax Calculator FY 2026-27
Age of taxpayer
Deductions for the old regime (optional)
These deductions are ignored in the new regime, as per law.
Enter your income and tap
Calculate Tax to compare both regimes.
Income Tax Calculator FY 2026-27 (AY 2027-28) – New vs Old Regime
This free income tax calculator for FY 2026-27 works out your tax under both the new tax regime and the old tax regime in one go and tells you which one saves more money. It applies the latest slab rates, the ₹75,000 standard deduction, the enhanced rebate that makes income up to ₹12 lakh tax-free, marginal relief, surcharge and the 4% health and education cess – so the number you see is the actual tax payable, not a rough guess.
From 1 April 2026 income tax in India is governed by the new Income-tax Act, 2025, which replaced the Income-tax Act, 1961. The new law mainly simplifies the language and renumbers sections (for example, the rebate earlier known as Section 87A); the tax slabs, rebate and standard deduction for FY 2026-27 are the same as FY 2025-26. This calculator therefore also works for FY 2025-26 (AY 2026-27) returns.
How to Use the Income Tax Calculator
- Select your age group – below 60, senior citizen (60–79) or super senior citizen (80+). Age changes the basic exemption only in the old regime.
- Enter your annual gross salary – the total of basic, DA, HRA, special allowance, bonus and other taxable allowances for the year (from Form 16 or your CTC minus employer PF).
- Keep "salaried" ticked if you are an employee or pensioner so the standard deduction is applied (₹75,000 new regime, ₹50,000 old regime).
- Add other income such as savings and FD interest, net rental income or freelance income.
- Optional: open the old-regime deductions box and enter 80C, 80D, HRA exemption, home loan interest and NPS.
- Tap "Calculate Tax" to see taxable income, tax, rebate, surcharge, cess, total tax, effective tax rate and monthly TDS for both regimes, with the recommended option.
New Tax Regime Slabs for FY 2026-27
The new regime is the default regime. Its slabs are the same for all ages:
| Taxable income | Tax rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
A resident individual whose taxable income does not exceed ₹12 lakh gets a rebate of up to ₹60,000, so the tax becomes zero. For a salaried person, adding the ₹75,000 standard deduction means a salary of up to ₹12.75 lakh is effectively tax-free.
Old Tax Regime Slabs for FY 2026-27
| Taxable income | Below 60 | 60 to 79 | 80 and above |
|---|---|---|---|
| Up to ₹2,50,000 | Nil | Nil | Nil |
| ₹2,50,001 – ₹3,00,000 | 5% | Nil | Nil |
| ₹3,00,001 – ₹5,00,000 | 5% | 5% | Nil |
| ₹5,00,001 – ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
In the old regime the rebate is up to ₹12,500 for taxable income up to ₹5 lakh. The old regime has to be chosen specifically – salaried taxpayers can choose every year while filing the return, but people with business income can switch back only once.
Surcharge and Cess
On top of the slab tax, a surcharge applies to high incomes and a 4% health and education cess applies to everyone who pays tax:
| Total income | Surcharge (new regime) | Surcharge (old regime) |
|---|---|---|
| ₹50 lakh – ₹1 crore | 10% | 10% |
| ₹1 crore – ₹2 crore | 15% | 15% |
| ₹2 crore – ₹5 crore | 25% | 25% |
| Above ₹5 crore | 25% (capped) | 37% |
Marginal relief makes sure that when your income crosses a surcharge threshold by a small amount, the extra tax and surcharge do not exceed the extra income. The calculator applies this automatically.
What Is Marginal Relief at ₹12 Lakh?
Without marginal relief, a person earning ₹12,10,000 of taxable income would suddenly pay ₹61,500 in tax, while someone at ₹12,00,000 pays nothing. The law caps the tax at the amount by which income exceeds ₹12 lakh. So at ₹12,10,000 the tax is only ₹10,000 plus ₹400 cess = ₹10,400. Marginal relief stops at around ₹12.7 lakh of taxable income, where normal slab tax becomes lower than the excess income. Our calculator shows this relief in the "Rebate / relief" row.
Deductions Allowed in Each Regime
| Deduction / exemption | New regime | Old regime |
|---|---|---|
| Standard deduction (salary / pension) | ₹75,000 | ₹50,000 |
| 80C – EPF, PPF, ELSS, LIC, tuition fees, home loan principal | No | Up to ₹1,50,000 |
| 80D – health insurance | No | ₹25,000 to ₹1,00,000 |
| HRA and LTA exemption | No | Yes |
| Home loan interest (self-occupied) | No | Up to ₹2,00,000 |
| 80CCD(1B) – own NPS contribution | No | Up to ₹50,000 |
| 80CCD(2) – employer NPS contribution | Yes (up to 14% of salary) | Yes (up to 10% of salary) |
| Family pension deduction | ₹25,000 | ₹15,000 |
New Regime or Old Regime – Which Is Better?
For most taxpayers the new regime is now cheaper because of its lower rates, higher standard deduction and the ₹12 lakh rebate. The old regime wins only when your deductions are large. As a rough guide, the old regime becomes better only if your total deductions (80C, 80D, HRA, home loan interest, NPS and others, excluding the standard deduction) are above about ₹5.4 lakh at a ₹15 lakh salary, about ₹7.1 lakh at ₹20 lakh and about ₹8 lakh at ₹24.75 lakh and higher. The exact break-even point depends on your income, which is why this calculator compares both regimes with your own numbers.
- Choose the new regime if you have no home loan, live in your own house or pay little rent, and invest less than ₹1.5 lakh in tax-saving products.
- Consider the old regime if you pay high rent in a metro city (large HRA exemption), have a home loan and also use the full 80C, 80D and NPS limits.
- Income up to ₹12.75 lakh (salaried): the new regime gives zero tax, so it is almost always better.
Worked Examples (FY 2026-27)
| Case | New regime tax | Old regime tax |
|---|---|---|
| Salary ₹12,75,000, no deductions | ₹0 | ₹1,87,200 |
| Salary ₹15,00,000, no deductions | ₹97,500 | ₹2,57,400 |
| Salary ₹15,00,000, deductions ₹3,75,000 (80C 1.5 L + 80D 25k + home loan 2 L) | ₹97,500 | ₹1,40,400 |
| Salary ₹10,00,000, 80C ₹1,50,000 (old) | ₹0 | ₹75,400 |
Enter the same numbers in the calculator to see the full working including slab-wise tax and cess.
How Income Tax Is Calculated – Step by Step
- Gross total income = salary + house property income + other sources (+ business income, if any).
- Less deductions = standard deduction, and in the old regime also Chapter VI-A deductions, HRA and home loan interest.
- Taxable income is rounded to the nearest ₹10.
- Slab tax is calculated on each slab separately.
- Rebate reduces the tax to zero for income up to ₹12 lakh (new) or ₹5 lakh (old), with marginal relief just above ₹12 lakh.
- Surcharge is added for income above ₹50 lakh.
- Cess at 4% is added on tax plus surcharge to get the final tax payable.
Income Tax on Salary – Quick Table for FY 2026-27
The table shows the total tax (including 4% cess) on common gross salaries, assuming only the standard deduction and no other income. In the old regime no other deductions are assumed, so your old-regime tax will be lower if you claim 80C, HRA or home loan interest.
| Gross salary | New regime tax | Monthly TDS (new) | Old regime tax (no deductions) |
|---|---|---|---|
| ₹8,00,000 | ₹0 | ₹0 | ₹65,000 |
| ₹10,00,000 | ₹0 | ₹0 | ₹1,06,600 |
| ₹12,75,000 | ₹0 | ₹0 | ₹1,87,200 |
| ₹15,00,000 | ₹97,500 | ₹8,125 | ₹2,57,400 |
| ₹18,00,000 | ₹1,50,800 | ₹12,567 | ₹3,51,000 |
| ₹20,00,000 | ₹1,92,400 | ₹16,033 | ₹4,13,400 |
| ₹25,00,000 | ₹3,19,800 | ₹26,650 | ₹5,69,400 |
| ₹30,00,000 | ₹4,75,800 | ₹39,650 | ₹7,25,400 |
| ₹50,00,000 | ₹10,99,800 | ₹91,650 | ₹13,49,400 |
How to Save Tax Under the New Regime
Most deductions are not available in the new regime, but a few legal ways to reduce tax remain:
- Employer's NPS contribution (80CCD(2)): ask your employer to contribute up to 14% of your basic salary to NPS. This amount is deducted from your taxable income even in the new regime.
- Standard deduction: ₹75,000 is automatic for salaried employees and pensioners.
- Tax-free allowances and reimbursements: conveyance allowance for disabled employees, official travel reimbursement and certain perquisites remain exempt.
- Agniveer Corpus Fund contributions are deductible in both regimes.
- Stay just below ₹12 lakh of taxable income where possible – for example by increasing the employer NPS share – to use the full rebate.
Common Terms Explained
- Financial Year (FY) and Assessment Year (AY): FY 2026-27 runs from 1 April 2026 to 31 March 2027. The income of this year is assessed in AY 2027-28, when you file the return. The new Income-tax Act, 2025 uses the single term "tax year" for this.
- Gross total income: income from all heads before deductions.
- Taxable income: gross total income minus the deductions allowed in your chosen regime.
- Rebate: a reduction in tax (not income) available to resident individuals below the income limit.
- Surcharge: an extra tax on the tax amount for incomes above ₹50 lakh.
- Cess: the 4% health and education cess charged on tax plus surcharge.
- TDS: tax deducted at source by your employer or bank and adjusted against your final tax.
Important Dates for FY 2026-27
- Advance tax: 15% by 15 June 2026, 45% by 15 September 2026, 75% by 15 December 2026 and 100% by 15 March 2027 (if tax after TDS exceeds ₹10,000).
- Choice of regime: tell your employer at the start of the year so TDS is deducted correctly; salaried people can still change the choice while filing the return.
- ITR due date: normally 31 July 2027 for individuals who do not need an audit, unless extended by the government.
Frequently Asked Questions
Is income up to ₹12 lakh tax-free in FY 2026-27?
Yes, under the new regime a resident individual with taxable income up to ₹12 lakh pays no tax because of the rebate of up to ₹60,000. For salaried people this means gross salary up to ₹12.75 lakh after the ₹75,000 standard deduction.
Have the tax slabs changed in Budget 2026?
No. The slab rates, rebate and standard deduction for FY 2026-27 are the same as FY 2025-26. The main change is that the Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026.
What is the standard deduction for FY 2026-27?
₹75,000 in the new regime and ₹50,000 in the old regime, for salaried employees and pensioners.
Does the ₹12 lakh rebate apply to capital gains?
No. The rebate does not apply to tax on special-rate income such as long-term capital gains under the equity rules or short-term gains taxed at a special rate. This calculator covers normal income only.
Which regime is better for ₹15 lakh salary?
With no deductions the new regime tax is ₹97,500 against ₹2,57,400 in the old regime. The old regime becomes better only if your deductions (apart from the standard deduction) are more than about ₹5.4 lakh.
Is this calculator valid for FY 2025-26 (AY 2026-27)?
Yes. The slabs, rebate, surcharge and standard deduction are identical for FY 2025-26 and FY 2026-27.
How is monthly TDS on salary calculated?
Your employer divides the estimated annual tax by 12 (adjusted for months already passed). The calculator shows this monthly figure for both regimes.
Is my income data stored?
No. All calculations happen in your browser and nothing is sent to our server.
Sources: Income Tax Department (incometax.gov.in) – tax slabs for AY 2026-27; Finance Act 2025 and Budget 2026 announcements; Income-tax Act, 2025.