What's New for FY 2026-27
- No change in slabs: Budget 2026 kept the income tax slabs and rates the same as last year.
- New law: the Income-tax Act, 2025 replaces the Income-tax Act, 1961 from 1 April 2026. It uses a single term, "tax year", instead of previous year and assessment year.
- New regime is the default: you pay tax under the new regime unless you choose the old one.
Section numbers have changed under the new Act. This page uses the familiar names, such as Section 80C, so they are easy to recognise.
How to Use This Income Tax Calculator
- Annual gross salary: your total yearly salary before deductions.
- Deductions for the old regime: the total of 80C investments, 80D health insurance, HRA exemption, home loan interest and other deductions you claim.
- Your age: senior citizens get a higher tax-free limit in the old regime.
The calculator applies the standard deduction, slab rates, rebate, surcharge and 4% cess under both regimes. It assumes you are a salaried resident individual and does not cover special-rate income such as capital gains.
New Tax Regime Slabs (FY 2026-27)
| 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% |
Salaried people get a standard deduction of ₹75,000 in the new regime. With the rebate, a salary of up to ₹12.75 lakh means zero tax.
Old Tax Regime Slabs (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% |
The old regime gives a standard deduction of ₹50,000, plus deductions such as 80C, 80D, HRA and home loan interest.
Rebate, Marginal Relief, Surcharge and Cess
- Rebate (Section 87A): new regime: full tax up to ₹60,000 if taxable income is ₹12 lakh or less. Old regime: up to ₹12,500 if taxable income is ₹5 lakh or less.
- Marginal relief near ₹12 lakh: in the new regime, if your taxable income is just above ₹12 lakh, your tax cannot be more than the income above ₹12 lakh.
- Surcharge: 10% above ₹50 lakh, 15% above ₹1 crore and 25% above ₹2 crore. The old regime adds 37% above ₹5 crore. Marginal relief applies at each step.
- Cess: 4% health and education cess on tax plus surcharge.
Example: ₹13 lakh salary, new regime
- Taxable income after ₹75,000 standard deduction = ₹12,25,000
- Tax on slabs = ₹63,750, but marginal relief limits it to ₹25,000 (the amount above ₹12 lakh)
- With 4% cess, total tax = ₹26,000
Which Regime Is Better for You?
The old regime wins only if your deductions are large enough. Here is roughly how much you need to claim (on top of the standard deduction) for the old regime to match the new one:
| Gross salary | Old regime deductions needed to break even |
|---|---|
| ₹10 lakh | ₹4.50 lakh |
| ₹12.75 lakh | ₹7.25 lakh |
| ₹15 lakh | ₹5.44 lakh |
| ₹18 lakh | ₹6.42 lakh |
| ₹20 lakh | ₹7.09 lakh |
| ₹25 lakh and above | ₹8.00 lakh |
For taxpayers below 60 with no surcharge. Your exact figure is in the calculator above.
Most salaried people claim ₹1.5–3 lakh in deductions, so the new regime is better for most. The old regime can still win if you claim large HRA, home loan interest and 80C together.
New Regime Tax at Different Salaries
| Gross salary | Total tax (incl. cess) | Effective rate |
|---|---|---|
| ₹8 lakh | ₹0 | 0% |
| ₹12 lakh | ₹0 | 0% |
| ₹12.75 lakh | ₹0 | 0% |
| ₹15 lakh | ₹97,500 | 6.5% |
| ₹18 lakh | ₹1,50,800 | 8.4% |
| ₹20 lakh | ₹1,92,400 | 9.6% |
| ₹25 lakh | ₹3,19,800 | 12.8% |
| ₹30 lakh | ₹4,75,800 | 15.9% |
| ₹50 lakh | ₹10,99,800 | 22.0% |
Common Deductions in the Old Regime
EPF, PPF, ELSS, life insurance premium, tax-saver FD, children's tuition fees and home loan principal.
Up to ₹25,000 for self and family, more for senior citizen parents.
For salaried people paying rent, based on salary, rent paid and city.
Up to ₹2 lakh a year for a self-occupied home.
An extra ₹50,000 for your own NPS contribution.
The employer's contribution to your NPS is deductible in the new regime too. It is not included in this calculator.
Frequently Asked Questions
Which tax regime is better for FY 2026-27?
For most salaried people, the new regime gives lower tax. The old regime is better only if your total deductions are large, usually ₹5–8 lakh or more depending on your salary.
Is income up to ₹12 lakh tax-free?
Under the new regime, yes. Tax on taxable income up to ₹12 lakh is fully covered by the rebate. For salaried people, the ₹75,000 standard deduction makes a salary up to ₹12.75 lakh tax-free. The rebate does not apply to special-rate income such as capital gains.
Can I switch between the old and new regime every year?
Salaried individuals without business income can choose either regime each year when filing their return. People with business income have stricter limits on switching.
What is the standard deduction?
It is a flat deduction from salary income: ₹75,000 under the new regime and ₹50,000 under the old regime. You get it automatically, without any proof.
Does this calculator include HRA?
Yes, as part of the deductions you enter for the old regime. HRA exemption is not available in the new regime.
Is cess charged on top of income tax?
Yes. A 4% health and education cess is added on your income tax plus surcharge, under both regimes.
