India Income Tax Calculator FY 2026-27 (New vs Old Regime)
Compare income tax under the new and old regimes for FY 2026-27 with the ₹12 lakh rebate, standard deduction, surcharge and 4% cess, and see which saves more.
This calculator works out income tax for an Indian resident individual for FY 2026-27 under both the new regime (the default) and the old regime, so you can see which one leaves you with more money. Budget 2026 kept last year's slabs, so income up to ₹12 lakh — ₹12.75 lakh for salaried people — is tax-free under the new regime thanks to the rebate.
How to use this tool
- Enter your gross annual salary or pension and any other income.
- Choose your age band; it changes the old-regime exemption limit.
- For the old regime, enter HRA exemption, 80C, 80D, home loan interest and other deductions.
- Compare the two totals and the suggested regime.
Formula
Tax = (slab tax − rebate) × (1 + surcharge rate) × 1.04
New regime slabs: nil to ₹4 lakh, 5% to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh, 20% to ₹20 lakh, 25% to ₹24 lakh and 30% above, after a ₹75,000 standard deduction. Old regime: nil to ₹2.5 lakh (₹3 lakh at 60+, ₹5 lakh at 80+), 5% to ₹5 lakh, 20% to ₹10 lakh and 30% above, after a ₹50,000 standard deduction. The rebate is up to ₹60,000 (new, income to ₹12 lakh) or ₹12,500 (old, income to ₹5 lakh). Surcharge is 10% above ₹50 lakh, 15% above ₹1 crore and 25% above ₹2 crore (37% above ₹5 crore in the old regime), with marginal relief.
Example
On a ₹15,00,000 salary, the new regime gives taxable income of ₹14,25,000: 5% of ₹4 lakh (₹20,000) + 10% of ₹4 lakh (₹40,000) + 15% of ₹2.25 lakh (₹33,750) = ₹93,750, plus 4% cess = ₹97,500. In the old regime, with ₹1.5 lakh of 80C and ₹25,000 of 80D, taxable income is ₹12,75,000 and tax is ₹2,02,800, so the new regime saves ₹1,05,300.
Frequently asked questions
Is income up to ₹12 lakh really tax-free?
Under the new regime, yes: the rebate (section 87A of the 1961 Act) cancels up to ₹60,000 of tax when taxable income is ₹12 lakh or less. Just above that, marginal relief limits the tax to the amount by which income exceeds ₹12 lakh.
When is the old regime better?
Usually only with large deductions — for example full 80C, 80D, a big HRA exemption and home loan interest together. Enter yours and compare the two totals.
Did the new Income-tax Act change the rates?
No. The Income-tax Act, 2025 replaces the 1961 Act from 1 April 2026 and renames the assessment year to "tax year", but the FY 2026-27 rates match FY 2025-26.
Sources
This tool gives an estimate for general information only. It is not financial, tax, legal or medical advice — check with a qualified professional before you rely on the result.
Last updated: 2026