Income Tax Calculator FY 2026-27 – New vs Old Regime
Enter your income and deductions to see which regime saves you more tax.
How to use the Income Tax Calculator FY 2026-27
- Enter your gross annual income from salary and other sources.
- Choose whether you are salaried or a pensioner (for standard deduction).
- Enter deductions you claim – these only count in the old regime.
- Press Compare to see tax under both regimes.
Tax slabs for FY 2026-27 (AY 2027-28)
Budget 2026 made no change to the slabs, so the structure from Budget 2025 continues.
| New regime (default) | Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4–8 lakh | 5% |
| ₹8–12 lakh | 10% |
| ₹12–16 lakh | 15% |
| ₹16–20 lakh | 20% |
| ₹20–24 lakh | 25% |
| Above ₹24 lakh | 30% |
Standard deduction ₹75,000. Section 87A rebate up to ₹60,000 makes taxable income up to ₹12 lakh tax-free (₹12.75 lakh for salaried people). Marginal relief applies just above ₹12 lakh.
| Old regime (below 60) | Rate |
|---|---|
| Up to ₹2.5 lakh | Nil |
| ₹2.5–5 lakh | 5% |
| ₹5–10 lakh | 20% |
| Above ₹10 lakh | 30% |
Standard deduction ₹50,000. Rebate up to ₹12,500 for taxable income up to ₹5 lakh. Deductions like 80C, 80D, HRA and home loan interest are allowed.
Health & education cess of 4% is added to the tax in both regimes.
Which regime should you choose?
The new regime usually wins unless your total deductions are large – typically several lakh rupees through 80C, HRA and home loan interest together. Use the calculator each year, because the answer depends on your numbers.
Simplified for resident individuals below 60. Surcharge (income above ₹50 lakh), special-rate income such as capital gains, and senior citizen slabs are not included.
Worked examples for FY 2026-27 (salaried, below 60)
Salary ₹10 lakh, no major deductions
- New regime: taxable income = ₹10,00,000 − ₹75,000 = ₹9,25,000. Slab tax = ₹20,000 (4–8 lakh) + ₹12,500 (8–9.25 lakh) = ₹32,500. Rebate 87A cancels it fully. Tax = ₹0.
- Old regime with ₹1.5 lakh 80C: taxable = ₹10,00,000 − ₹50,000 − ₹1,50,000 = ₹8,00,000. Tax = ₹12,500 + ₹60,000 = ₹72,500 + 4% cess = ₹75,400.
Salary ₹15 lakh, deductions ₹1.75 lakh
- New regime: taxable = ₹14,25,000. Tax = 20,000 + 40,000 + 33,750 = ₹93,750 + cess = ₹97,500.
- Old regime: taxable = 15,00,000 − 50,000 − 1,75,000 = ₹12,75,000. Tax = 12,500 + 1,00,000 + 82,500 = ₹1,95,000 + cess = ₹2,02,800.
In both cases the new regime wins clearly. The old regime only starts to compete when deductions are very large – for example 80C plus HRA plus home-loan interest adding up to well over ₹4–5 lakh.
What is marginal relief?
Without relief, earning ₹1 more than ₹12 lakh of taxable income would suddenly make you pay over ₹60,000 in tax. Marginal relief ensures the tax payable does not exceed the income earned above ₹12 lakh. For example, at a taxable income of ₹12,25,000 the tax is limited to ₹25,000 (plus cess) instead of ₹63,750. This calculator applies marginal relief automatically.
Deductions checklist (old regime)
| Section | What qualifies | Limit |
|---|---|---|
| 80C | EPF, PPF, ELSS, life insurance, home-loan principal, tuition fees | ₹1,50,000 |
| 80CCD(1B) | Additional own NPS contribution | ₹50,000 |
| 80D | Health insurance premium | ₹25,000 (₹50,000 for senior citizens) |
| 24(b) | Interest on home loan (self-occupied) | ₹2,00,000 |
| HRA | Rent paid, as per HRA rules | As calculated |
Important dates
- Declare your regime choice to your employer at the start of the year so the right TDS is deducted.
- Pay advance tax in instalments if you have income beyond salary.
- File your ITR for FY 2026-27 by the due date in 2027 (usually 31 July for non-audit cases) to avoid late fees.
Frequently asked questions
Is income up to ₹12 lakh tax-free in FY 2026-27?
Under the new regime, yes – the 87A rebate covers tax on taxable income up to ₹12 lakh. Salaried people effectively pay nil up to ₹12.75 lakh after standard deduction.
Did Budget 2026 change the tax slabs?
No. The slabs from Budget 2025 continue for FY 2026-27.
Which deductions work in the new regime?
Mainly the standard deduction and employer NPS contribution. 80C, 80D, HRA and home loan interest on self-occupied property are old-regime only.
Can I switch between regimes every year?
Salaried individuals without business income can choose the regime each year while filing their return.
Is the standard deduction automatic?
Yes, for salaried employees and pensioners. It is ₹75,000 in the new regime and ₹50,000 in the old regime.
Last updated: 11 November 2026