Income Tax Calculator India FY 2026-27 – Calculate Tax Under New & Old Regime
An income tax calculator estimates your tax for FY 2026-27 under the new and old regimes so you can compare them. Under the new regime, taxable income up to ₹12 lakh pays no tax after the Section 87A rebate, which makes ₹12.75 lakh of salary tax-free. The old regime gives a rebate only up to ₹5 lakh.
Enter your income, choose your age group and add your old-regime deductions. The calculator shows tax under both regimes side by side, with rebate, cess and the better option highlighted. Figures are for FY 2026-27 (Tax Year 2026-27, called AY 2027-28 on older forms), based on publicly available Income Tax Department rules and slabs. Use the result to decide your regime, then check it against your payslip and Form 16 before you file.
Financial Year
FY 2026-27
New Regime Rebate
Up to ₹12 lakh
What Is the LegalDev Income Tax Calculator?
It is a free tool that estimates your income tax for FY 2026-27 under both regimes and shows which one costs less. It applies the slabs, standard deduction, Section 87A rebate, surcharge and 4% cess. It is based on publicly available Income Tax Department rules and slabs. It is not a government tool and does not file your return.
It works best for salary, pension and interest income. It does not compute business profits, or capital gains taxed at special rates, so treat the result for those cases as a starting point. If your case is complicated, see our ITR filing page.
How to Use This Income Tax Calculator
Enter your gross income, add old-regime deductions if you have any, and read both results.
1
Choose the Year
Choose FY 2026-27 in the year box.
2
Pick Your Age Group
Pick your age group: below 60, 60 to 79, or 80 and above. Age matters only in the old regime.
3
Enter Your Gross Annual Income
For salary, enter the total before deductions. The tool applies the standard deduction.
4
Enter Old-Regime Deductions Only
Section 80C up to ₹1.5 lakh, 80D health insurance, HRA exemption, home-loan interest up to ₹2 lakh on a self-occupied home, and NPS under 80CCD(1B) up to ₹50,000.
5
Press Calculate
Look at the 'Better option' banner, then at the difference in rupees.
Not sure about deductions? Enter zero first, then use the break-even figures further down to judge whether the old regime could win.
Income Tax Slabs for FY 2026-27 (Tax Year 2026-27)
For FY 2026-27 the slabs are the same as for FY 2025-26. The Union Budget of 1 February 2026 did not change slab rates under either regime. The new regime is the default. You must opt out to use the old one.
New Tax Regime Slabs
| Taxable income | Rate | Tax at top of slab |
|---|
| Up to ₹4,00,000 | Nil | ₹0 |
| ₹4,00,001 to ₹8,00,000 | 5% | ₹20,000 |
| ₹8,00,001 to ₹12,00,000 | 10% | ₹60,000 |
| ₹12,00,001 to ₹16,00,000 | 15% | ₹1,20,000 |
| ₹16,00,001 to ₹20,00,000 | 20% | ₹2,00,000 |
| ₹20,00,001 to ₹24,00,000 | 25% | ₹3,00,000 |
| Above ₹24,00,000 | 30% | ₹3,00,000 plus 30% of the excess |
Slab rates are the same for all ages in the new regime. Cess and surcharge are added on top.
Old Tax Regime Slabs
| Taxable income | Below 60 | 60 to 79 | 80 and above |
|---|
| Up to ₹2,50,000 | Nil | Nil | Nil |
| ₹2,50,001 to ₹3,00,000 | 5% | Nil | Nil |
| ₹3,00,001 to ₹5,00,000 | 5% | 5% | Nil |
| ₹5,00,001 to ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
The old regime allows exemptions and deductions such as HRA, 80C and 80D.
Income-tax Act, 2025: What Changed for Tax Year 2026-27
The Income-tax Act, 2025 applies from 1 April 2026, so FY 2026-27 is now called Tax Year 2026-27. Older forms and many guides still say AY 2027-28, which means the same twelve months.
Some sections moved. Reports show the new regime now sits in Section 202 (earlier 115BAC), the rebate in Section 156 (earlier 87A) and the employer NPS deduction in Section 125 (earlier 80CCD(2)). The slab rates themselves still come from the annual Finance Act. We use the old section names in brackets, because that is how most people search.
New Tax Regime vs Old Tax Regime
The new regime has lower rates and few deductions. The old regime has higher rates and many deductions. Neither wins for everyone.
| Factor | New regime | Old regime |
|---|
| Default | Yes | No, you opt out |
| Basic exemption | ₹4 lakh | ₹2.5 lakh (higher for seniors) |
| Standard deduction (salary, pension) | ₹75,000 | ₹50,000 |
| Section 87A rebate | Up to ₹60,000, income up to ₹12 lakh | Up to ₹12,500, income up to ₹5 lakh |
| HRA, 80C, 80D | Not allowed | Allowed |
| Employer NPS contribution | Allowed | Allowed within limits |
| Surcharge on income above ₹5 crore | 25% | 37% |
Here is the tax for a salaried person below 60 with no deductions beyond the standard deduction, including 4% cess.
| Gross salary | New regime | Old regime |
|---|
| ₹8,00,000 | ₹0 | ₹65,000 |
| ₹12,75,000 | ₹0 | ₹1,87,200 |
| ₹15,00,000 | ₹97,500 | ₹2,57,400 |
| ₹20,00,000 | ₹1,92,400 | ₹4,13,400 |
To see whether the old regime could win for you, use the break-even deductions below. They are deductions on top of the ₹50,000 standard deduction.
| Gross salary | Old-regime deductions needed to match the new regime |
|---|
| ₹12,75,000 | about ₹7.25 lakh |
| ₹15,00,000 | about ₹5.44 lakh |
| ₹20,00,000 | about ₹7.08 lakh |
On a ₹15 lakh salary, that means 80C of ₹1.5 lakh, NPS ₹50,000, home-loan interest ₹2 lakh, health insurance and HRA would all have to be near the maximum. Check what you can really claim.
How Income Tax Is Calculated in India
You add up your income, subtract what the law lets you subtract, apply the slabs, then adjust for rebate, surcharge and cess.
1
Add your income
Salary, pension, interest, rent and other sources.
2
Subtract the standard deduction
Under the old regime, also subtract exemptions and deductions such as HRA, 80C and 80D.
3
Find your taxable income
The result is your taxable income.
4
Apply the slab rates
Apply the slab rates to taxable income.
5
Subtract the Section 87A rebate
Subtract the Section 87A rebate, if you qualify.
6
Add surcharge
Add surcharge if income is above ₹50 lakh.
7
Add 4% cess
Add 4% health and education cess on the tax and surcharge.
8
Subtract TDS and advance tax
Subtract TDS and advance tax already paid. What remains is payable or refundable.
9
Rounding
Total income and tax are rounded to the nearest ₹10.
Example: Income Tax on a ₹12.75 Lakh Salary
A salaried person below 60 with a ₹12.75 lakh salary pays no tax in the new regime and ₹1,87,200 in the old regime if they claim nothing else. The gap is the 87A rebate.
New regime, FY 2026-27
| Step | Amount |
|---|
| Gross salary | ₹12,75,000 |
| Less standard deduction | ₹75,000 |
| Taxable income | ₹12,00,000 |
| Slab tax (₹20,000 + ₹40,000) | ₹60,000 |
| Less 87A rebate | ₹60,000 |
| Tax and cess | ₹0 |
Old regime, no deductions beyond standard
| Step | Amount |
|---|
| Taxable income (₹12,75,000 − ₹50,000) | ₹12,25,000 |
| Slab tax: ₹12,500 + ₹1,00,000 + ₹67,500 | ₹1,80,000 |
| Cess at 4% | ₹7,200 |
| Total | ₹1,87,200 |
Now give the old regime a good set of deductions: 80C ₹1.5 lakh, health insurance ₹25,000, home-loan interest ₹2 lakh, HRA exemption ₹1 lakh. Together with the standard deduction, taxable income falls to ₹7.5 lakh. Tax is ₹62,500 plus ₹2,500 cess, so ₹65,000. The new regime still wins by ₹65,000.
Section 87A Rebate Explained
The rebate cuts your tax to zero if your taxable income is within the limit. Under the new regime the limit is ₹12 lakh and the rebate is up to ₹60,000. Under the old regime it is ₹5 lakh and up to ₹12,500. It is open to resident individuals only. HUFs and NRIs do not get it. In the new regime it is not allowed against tax on capital gains taxed at special rates.
The new regime also has marginal relief. Take a ₹12.85 lakh salary. Taxable income is ₹12.1 lakh, and slab tax would be ₹61,500. With marginal relief, tax cannot exceed the ₹10,000 by which income passes ₹12 lakh. Add 4% cess and you pay ₹10,400. Relief matters until taxable income reaches about ₹12.71 lakh. The old regime has no marginal relief.
Standard Deduction, Cess and Surcharge
The standard deduction is ₹75,000 in the new regime and ₹50,000 in the old regime for salary and pension. Cess is 4% of tax plus surcharge. Surcharge applies only on high income:
| Total income | Surcharge, new regime | Surcharge, old regime |
|---|
| Above ₹50 lakh to ₹1 crore | 10% | 10% |
| Above ₹1 crore to ₹2 crore | 15% | 15% |
| Above ₹2 crore to ₹5 crore | 25% | 25% |
| Above ₹5 crore | 25% | 37% |
Who Should Use This Calculator?
Salaried people - to pick a regime before telling your employer for TDS.
Pensioners - the standard deduction applies to pension too. Seniors compare the age-wise old-regime slabs.
Freelancers and small business owners - those with business income can switch back to the old regime only once, so decide carefully.
HUFs - you can choose the new regime, but there is no 87A rebate.
Important Things to Remember
Most wrong estimates come from a few myths.
| Myth | Fact |
|---|
| Income up to ₹12 lakh is tax-free for everyone | The limit is taxable income after deductions, for resident individuals, not capital gains at special rates. For salary, that is ₹12.75 lakh gross |
| Cross ₹12 lakh by a rupee and you pay the full tax | Marginal relief limits tax to the excess over ₹12 lakh |
| The old regime always saves more if I invest | At ₹15 lakh you need about ₹5.44 lakh of deductions to break even |
| I am locked into one regime | Salaried taxpayers can choose each year. Business income limits switching back |
| The new regime has no deductions | The standard deduction and employer NPS contribution are allowed |
| Budget 2026 changed the slabs | It did not. Slabs are the same as FY 2025-26 |
| AY and FY are different years | FY 2026-27 is Tax Year 2026-27, AY 2027-28 in old terms |
| The calculator gives my final tax | It is an estimate. Capital gains, business income and TDS change it |
Before you file, match the result with your Form 16 and the AIS or Form 26AS. If you pay TDS through your employer, tell them your regime. Our TDS calculator, 80C calculator and salary calculator can help with the inputs.
FAQs
Subtract the standard deduction from your income, apply the slab rates, subtract any 87A rebate, add surcharge if due, then add 4% cess.
In the new regime: nil to ₹4 lakh, then 5%, 10%, 15%, 20%, 25% and 30% above ₹24 lakh. The old regime has nil to ₹2.5 lakh, then 5%, 20% and 30%.
Yes, taxable income up to ₹12 lakh pays no tax under the new regime after the 87A rebate, if you are a resident individual. For a salaried person, that is ₹12.75 lakh of salary.
₹75,000 under the new regime and ₹50,000 under the old regime for salary and pension.
No. It is for resident individuals only, not HUFs or NRIs.
The new regime is better unless your old-regime deductions are large. At ₹15 lakh, you need about ₹5.44 lakh of deductions on top of the standard deduction.
Salaried taxpayers can choose each year. People with business income can switch back to the old regime only once.
None in substance. They are the same twelve months, April 2026 to March 2027. The 2025 Act uses 'tax year'.
No. Slab rates for FY 2026-27 are the same as for FY 2025-26.
4% health and education cess on the tax plus any surcharge.
No. It is built for salary, pension and similar income, and the result is an estimate.
It is free. It is not government-approved. It is based on publicly available Income Tax Department rules and slabs.