Income Tax Calculator India FY 2026-27

Income Tax Calculator

Calculate income tax under Old and New Regime for FY 2026-27. Side-by-side comparison with all deductions.

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₹1,00,000₹1,00,00,000

Deductions

Standard deduction is auto-applied: ₹50,000 (Old) / ₹75,000 (New).

New Regime allows only Standard Deduction and Employer NPS (80CCD(2)). Other deduction fields are grayed out in New Regime results.
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EPF, PPF, ELSS, LIC, NSC, SSY, Tax-saving FD, Tuition Fees, Home Loan Principal
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Section 80D - Health Insurance

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Use our HRA Calculator
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Total Deductions (Old Regime)₹2,25,000

Old Regime

Gross Salary₹10,00,000
Less: Standard Deduction-₹50,000
Gross Total Income₹9,50,000
Less: Chapter VI-A Deductions-₹1,75,000
80C-₹1,50,000
80D-₹25,000
Taxable Income₹7,75,000
Tax on above₹67,500
Tax After Rebate₹67,500
Add: Cess (4%)+₹2,700
TOTAL TAX LIABILITY₹70,200
Effective Rate7.0%

New Regime FY 2026-27

Gross Salary₹10,00,000
Less: Standard Deduction-₹75,000
Taxable Income₹9,25,000
Tax on above₹32,500
Less: Section 87A Rebate-₹32,500
Tax After Rebate₹0
Add: Cess (4%)+₹0
TOTAL TAX LIABILITY₹0
Effective Rate0.0%

Income up to ₹12L is tax-free under New Regime due to Section 87A rebate

New Regime saves you ₹70,200 more per year!

Old Regime Slab Breakdown

₹0 - ₹2,50,000 @ 0%₹0
₹2,50,000 - ₹5,00,000 @ 5%₹12,500
₹5,00,000 - ₹10,00,000 @ 20%₹55,000

New Regime Slab Breakdown

₹0 - ₹4,00,000 @ 0%₹0
₹4,00,000 - ₹8,00,000 @ 5%₹20,000
₹8,00,000 - ₹12,00,000 @ 10%₹12,500

Monthly Take-Home Estimate

Old Regime

₹77,483

per month

New Regime

₹83,333

per month

Tax slabs: New Regime FY 2026-27 per Union Budget 2025. Old Regime unchanged since FY 2023-24.

Disclaimer: This calculator is for illustration purposes only based on FY 2026-27 tax slabs. Actual tax liability may vary based on exemptions, surcharge, and other factors. Consult a qualified chartered accountant or tax advisor for precise calculations. Standard deduction of ₹50,000 (Old) and ₹75,000 (New) is auto-applied.

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Disclaimer: This calculator provides estimated tax computations based on the Income Tax Act and the Union Budget applicable for the selected financial year.
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TL;DR

Income tax in India for FY 2026-27 (assessment year 2027-28) runs under two regimes. New regime is the default (Section 115BAC). Slabs: nil up to Rs 4L, 5% on 4-8L, 10% on 8-12L, 15% on 12-16L, 20% on 16-20L, 25% on 20-24L, 30% above Rs 24L. Section 87A rebate of up to Rs 60,000 makes income up to Rs 12 lakh tax-free in the new regime, with marginal relief applying just above this threshold. Old regime offers more deductions (HRA, 80C, 80D, home loan interest) but higher rates: nil up to Rs 2.5L, 5% on 2.5-5L, 20% on 5-10L, 30% above Rs 10L. Standard deduction: Rs 75,000 (new) / Rs 50,000 (old), salaried only. 4% Health and Education Cess applies on tax in both regimes. The Income-tax Act 2025 takes effect 1 April 2026 with renumbered sections but substantively unchanged rules.

Quick Facts

Financial YearFY 2026-27 (1 April 2026 to 31 March 2027)
Assessment YearAY 2027-28
Default regimeNew (Section 115BAC of the Income Tax Act 1961)
New regime exempt slabUp to Rs 4,00,000
New regime top rate30% above Rs 24,00,000
Old regime exempt slabRs 2.5L (below 60) / Rs 3L (60-80) / Rs 5L (80+)
Standard deductionRs 75,000 (new) / Rs 50,000 (old), salaried only
Section 87A rebate (new)Up to Rs 60,000; income up to Rs 12L tax-free; marginal relief up to ~Rs 12.75L
Section 87A rebate (old)Up to Rs 12,500; income up to Rs 5L tax-free
Cess on tax4% Health and Education (both regimes)
Regime switchSalaried: yearly while filing ITR. Business/professional: once-lifetime opt-out from new regime.
StatuteIncome Tax Act 1961, re-codified as Income-tax Act 2025 effective 1 April 2026

Old vs New Tax Regime - Which Is Better for You?

India's income tax system offers two regimes - the Old Regime with higher tax rates but multiple deductions, and the New Regime which became the default in FY 2023-24 (Section 115BAC) with lower rates but fewer deductions. Choosing the right regime can save you thousands of rupees every year. The right choice depends on your salary structure, investments, and eligible deductions.

Under the Old Regime, deductions like HRA, 80C (Rs.1.5 lakh for PPF, ELSS, LIC), 80D (health insurance), and home loan interest significantly reduce your taxable income. The New Regime skips most of these but offers a flat lower slab rate plus a generous Section 87A rebate. For salaried individuals with high investments and HRA, the Old Regime often wins. For those with minimal deductions, the New Regime is simpler and usually cheaper. Considering surrendering an old LIC policy? Note that surrendering within 2 years reverses prior 80C deductions, and Section 194DA TDS at 2% may apply on the income portion if Section 10(10D) exemption fails - see our LIC Surrender Value Calculator for the IRDAI floor estimate and tax-flag breakdown.

Tax Slabs for FY 2026-27

The Budget 2025 slab restructuring is retained for FY 2026-27 (no changes in Budget 2026). Slabs apply to taxable income after the standard deduction.

New Regime (default, Section 115BAC): up to Rs.4 lakh exempt, Rs.4-8 lakh at 5%, Rs.8-12 lakh at 10%, Rs.12-16 lakh at 15%, Rs.16-20 lakh at 20%, Rs.20-24 lakh at 25%, above Rs.24 lakh at 30%. Standard deduction Rs.75,000. Section 87A rebate of up to Rs.60,000 makes income up to Rs.12 lakh tax-free; marginal relief applies just above this threshold.

Old Regime: up to Rs.2.5 lakh exempt, Rs.2.5-5 lakh at 5%, Rs.5-10 lakh at 20%, above Rs.10 lakh at 30%. Standard deduction Rs.50,000. Section 87A rebate of Rs.12,500 applies for income up to Rs.5 lakh. Health and Education Cess of 4% applies on top of computed tax in both regimes.

For freelancers and consultants: the Section 16 standard deduction (Rs 75K new / Rs 50K old) is salaried-only. If you are independent, see our Freelance Rate Calculator to convert your CTC equivalent to the gross hourly rate you must charge, factoring EPF, gratuity, insurance, and Section 44ADA / actual-books math.

Worked Example: Rs 15 Lakh Salary, New vs Old Regime

Scenario: software engineer, age 32, Rs 15,00,000 annual gross salary. Claiming Rs 1,50,000 under Section 80C (PPF + ELSS), Rs 25,000 under Section 80D (self and family health insurance), no HRA exemption, no home loan interest. Compare both regimes side by side.

New Regime calculation:

  • Gross salary: Rs 15,00,000
  • Less: Standard deduction (Section 16(ia)): Rs 75,000
  • Taxable income: Rs 14,25,000
  • Tax on slabs: 0 + Rs 20,000 (4-8L at 5%) + Rs 40,000 (8-12L at 10%) + Rs 33,750 (12-14.25L at 15%) = Rs 93,750
  • Section 87A rebate: not applicable (taxable income above Rs 12 lakh)
  • Add: Health and Education Cess (4%): Rs 3,750
  • Total tax: Rs 97,500 per year (Rs 8,125 per month)

Old Regime calculation:

  • Gross salary: Rs 15,00,000
  • Less: Standard deduction (Section 16(ia)): Rs 50,000
  • Less: Chapter VI-A deductions (80C Rs 1,50,000 + 80D Rs 25,000): Rs 1,75,000
  • Taxable income: Rs 12,75,000
  • Tax on slabs: 0 + Rs 12,500 (2.5-5L at 5%) + Rs 1,00,000 (5-10L at 20%) + Rs 82,500 (10-12.75L at 30%) = Rs 1,95,000
  • Section 87A rebate: not applicable (taxable income above Rs 5 lakh)
  • Add: Health and Education Cess (4%): Rs 7,800
  • Total tax: Rs 2,02,800 per year (Rs 16,900 per month)

Verdict: the new regime saves Rs 1,05,300 per year for this taxpayer. The break-even point sits around Rs 4,50,000 of old-regime deductions stacked. With HRA exemption plus 80C plus 80D plus Section 24(b) home loan interest stacking above Rs 4.5 lakh combined, the old regime can swing cheaper. Plug your own numbers into the calculator above to see which regime wins for your actual deductions.

Sources & References

  • Income Tax Department of India - official slabs, sections, and rebate notifications
  • Section 115BAC, Income Tax Act 1961 (New Regime, default since FY 2023-24; substantively re-codified in the Income Tax Act 2025 effective 1 April 2026)
  • Section 87A, Income Tax Act 1961 (rebate)
  • Income-tax Act 2025 - effective from 1 April 2026, replacing the 1961 Act with re-codified section numbering. Substantive rules and slabs are unchanged.
  • Union Budget 2025-26 (slab restructuring) and Union Budget 2026-27 (slabs retained)

Last reviewed against Income Tax Act 2025 and Budget 2026-27 in April 2026. Slabs and rebates change with each Union Budget - re-verify before high-stakes use.

Frequently Asked Questions

How does the income tax calculator work?+
Enter your annual income, deductions, and regime choice (old or new). The calculator computes your taxable income and tax liability based on current Indian tax slabs.
What is the difference between old and new tax regime?+
The old regime allows deductions under sections like 80C, 80D, and HRA. The new regime offers lower tax rates but removes most deductions.
Which tax regime is better - Old or New?+
It depends on your deductions. If you claim HRA, 80C, 80D, and home loan benefits totalling above Rs.3-4 lakh, the Old Regime usually results in lower tax. If your deductions are minimal, the New Regime's lower slab rates are more beneficial. Use our calculator to compare both side by side.
Can I switch between Old and New Regime every year?+
Salaried employees can switch between regimes every financial year when filing returns. However, business owners and self-employed individuals who opt out of the New Regime can only switch back once in their lifetime.
Is this calculator updated for the latest tax slabs?+
Yes, it reflects the latest Union Budget tax slabs for both the old and new regime.
Is this calculator useful outside India?+
This calculator is specifically designed for Indian income tax - it uses Indian tax slabs, deductions, and regime rules. For tax calculations in other countries, refer to your local tax authority's tools.
How much tax for Rs 10 lakh salary in new regime FY 2026-27?+
For a Rs 10 lakh annual gross salary in the new regime, taxable income after Rs 75,000 standard deduction is Rs 9,25,000. Tax on slabs: nil up to Rs 4L, Rs 20,000 on Rs 4-8L at 5%, Rs 12,500 on Rs 8-9.25L at 10% = Rs 32,500. Section 87A rebate of Rs 32,500 applies since taxable income is under Rs 12 lakh, making the final tax Rs 0. No cess. Effective tax: zero for Rs 10L salary in the new regime.
How much tax for Rs 15 lakh salary in new regime FY 2026-27?+
For a Rs 15 lakh annual gross salary in the new regime, taxable income after standard deduction is Rs 14,25,000. Tax: nil to Rs 4L, Rs 20,000 (5% on 4-8L), Rs 40,000 (10% on 8-12L), Rs 33,750 (15% on 12-14.25L) = Rs 93,750. Section 87A does not apply above Rs 12L taxable. Add 4% cess: Rs 3,750. Total tax: Rs 97,500 per year or Rs 8,125 per month under the new regime.
What is Section 87A marginal relief?+
Marginal relief prevents a sharp tax jump just above Rs 12,00,000 taxable income in the new regime. Without it, someone at Rs 12,00,001 would suddenly owe Rs 61,500+ in tax (slab-based) while someone at exactly Rs 12,00,000 owes nothing after rebate. Marginal relief caps the tax at the additional income above Rs 12 lakh. Example: at Rs 12,10,000 taxable, slab tax would be Rs 61,500 but marginal relief caps tax at Rs 10,000 (the amount over Rs 12L). The relief applies for income up to approximately Rs 12,75,000, after which slab tax becomes lower than the marginal relief cap.
Is HRA allowed in the new tax regime?+
No. House Rent Allowance (HRA) exemption under Section 10(13A) is NOT allowed in the new regime (Section 115BAC). The new regime explicitly disallows most exemptions and deductions in exchange for lower slab rates. HRA exemption is allowed ONLY in the old regime. If you receive substantial HRA, compute both regimes carefully - HRA exemption alone can tip the balance toward the old regime for renters in metro cities. From FY 2026-27, the metro list expanded from 4 to 8 cities (Delhi, Mumbai, Kolkata, Chennai plus Bengaluru, Hyderabad, Pune, Ahmedabad).
What deductions are allowed in the new tax regime?+
The new regime allows very few deductions: standard deduction of Rs 75,000 for salaried individuals (Section 16(ia)), employer contribution to NPS Tier-1 up to 14% of basic salary plus DA under Section 80CCD(2) which applies uniformly to private and government employees from FY 2025-26, and conveyance allowance for differently-abled employees. Most popular deductions are disallowed: 80C (PPF, ELSS, LIC), 80D (health insurance), 80E (education loan), 80G (donations), HRA, home loan interest under Section 24(b) for self-occupied property.
Can a freelancer claim the standard deduction?+
No. The standard deduction (Rs 75,000 new / Rs 50,000 old) is allowed only under the Income from Salaries head (Section 16(ia)). Freelancer income falls under Business or Profession head with different rules. Freelancers can opt for presumptive taxation under Section 44ADA (50% of gross receipts deemed expenses; gross receipts limit Rs 50 lakh, raised to Rs 75 lakh if at least 95% of receipts are via banking channels per Finance Act 2023) or maintain books and claim business expenses. See our Freelance Rate Calculator for income equivalence math.
What is the difference between FY and AY in income tax?+
Financial Year (FY) is the year you earn the income. Assessment Year (AY) is the next year, when you file your return for that FY's income. For income earned 1 April 2026 to 31 March 2027 (FY 2026-27), you file the return between April and 31 July 2027, which is Assessment Year 2027-28. ITR forms reference the AY, not the FY. So FY 2026-27 equals AY 2027-28.
When does the Income-tax Act 2025 take effect?+
The Income-tax Act 2025 takes effect 1 April 2026, replacing the 1961 Act. It is a re-codification, not a rewrite - substantive rules, slabs, deductions, and rebates are unchanged. Section numbers are renumbered (popular sections like 115BAC, 80C, 87A get new numbers in the 2025 Act, which has 536 sections across 23 chapters). For practical use during FY 2026-27, the rules from the 1961 Act apply, just under the 2025 Act's renumbered references.