Income Tax Calculator
Compare your income tax under the New and Old Regime for FY 2026-27 (AY 2027-28) in one calculation. Covers the ₹12 lakh 87A rebate, marginal relief, standard deduction, 80C/80D/NPS/HRA deductions, surcharge, and cess.
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New Regime Tax
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Old Regime Tax
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Tax Payable (Best Regime)
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How Income Tax Calculator Works
What is Income Tax?
Income tax is a direct tax levied by the Government of India on the income you earn in a financial year (April to March). For salaried individuals, tax is deducted monthly as TDS by the employer, and the final liability is settled when you file your Income Tax Return. Since FY 2023-24, every taxpayer chooses between two systems: the New Regime (lower rates, almost no deductions — now the default) and the Old Regime (higher rates, but with 80C, 80D, HRA, and other deductions). This calculator computes your tax under both regimes simultaneously for FY 2026-27 (AY 2027-28) and tells you which one saves you more.
Income Tax Slabs — FY 2026-27
New Regime (default)
| Income Slab | 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% |
Old Regime
| Income Slab | Below 60 | 60–79 | 80+ |
|---|---|---|---|
| Basic exemption | ₹2,50,000 | ₹3,00,000 | ₹5,00,000 |
| Exemption – ₹5,00,000 | 5% | ||
| ₹5,00,001 – ₹10,00,000 | 20% | ||
| Above ₹10,00,000 | 30% | ||
Standard Deduction
Salaried employees and pensioners automatically get a standard deduction — no proof required: ₹75,000 in the New Regime and ₹50,000 in the Old Regime. This is why income up to ₹12,75,000 is completely tax-free for a salaried person in the New Regime: ₹12.75L minus ₹75,000 leaves ₹12L taxable, which the Section 87A rebate reduces to zero.
Section 87A Rebate and Marginal Relief
The Section 87A rebate wipes out tax for lower incomes: in the New Regime, taxable income up to ₹12,00,000 pays zero tax (rebate up to ₹60,000); in the Old Regime, taxable income up to ₹5,00,000 pays zero (rebate up to ₹12,500).
Marginal relief protects New Regime taxpayers just above the threshold: if your taxable income is ₹12,05,000, the slab tax would be ₹60,750 — but relief caps it at the ₹5,000 you earned above ₹12L (₹5,200 after cess). Without relief, earning ₹5,000 extra would cost you ₹63,180 in tax. The Old Regime rebate has no marginal relief — it is a hard cliff at ₹5,00,010 of taxable income.
Old Regime Deductions
- Section 80C (max ₹1,50,000): PPF, ELSS funds, life insurance premiums, 5-year tax-saver FDs, EPF, home loan principal, children’s tuition.
- Section 80D (max ₹25,000; ₹50,000 for 60+): health insurance premiums for self and family; parents’ premiums add a further limit.
- NPS 80CCD(1B) (max ₹50,000): National Pension System contributions, over and above the 80C limit.
- HRA exemption: the least of actual HRA received, rent paid minus 10% of salary, and 50% of salary (metro) or 40% (non-metro). Enter the exempt amount in the calculator.
- Other deductions: home loan interest under 24(b) (max ₹2,00,000 — estimate your interest with the EMI Calculator), education loan interest (80E), donations (80G).
Surcharge and Health & Education Cess
Incomes above ₹50 lakh attract a surcharge on the tax amount: 10% (above ₹50L), 15% (above ₹1Cr), 25% (above ₹2Cr), and 37% (above ₹5Cr — Old Regime only; the New Regime caps the surcharge at 25%). Marginal relief applies at every threshold so a small raise can never cost more than it earns. Finally, a 4% Health & Education Cess applies to the tax plus surcharge in both regimes. Tax is rounded to the nearest ₹10 under Sections 288A/288B.
Worked Examples (FY 2026-27, salaried, below 60)
| Gross Salary | New Regime | Old Regime (80C full) | Winner |
|---|---|---|---|
| ₹8,00,000 | ₹0 (rebate) | ₹33,800 | New |
| ₹12,75,000 | ₹0 (rebate) | ₹1,40,400 | New |
| ₹16,00,000 | ₹1,13,100 | ₹2,41,800 | New |
| ₹25,00,000 | ₹3,19,800 | ₹5,22,600 | New |
Old Regime column assumes the full ₹1,50,000 under 80C and standard deduction only. With large HRA and home-loan interest claims on top, the Old Regime can still win — enter your actual deductions above to see your own break-even.
Common Mistakes
- Assuming deductions work in the New Regime. 80C, 80D, and HRA reduce only your Old Regime tax. The New Regime allows just the ₹75,000 standard deduction.
- Ignoring the rebate cliff in the Old Regime. At ₹5,00,010 taxable, the entire ₹12,500+ liability returns — one rupee of income can cost thousands.
- Comparing regimes on slab rates alone. The winner depends on your deduction total. Roughly: if your deductions (beyond standard) are small, the New Regime wins at almost every income after Budget 2025’s ₹12L rebate.
- Forgetting cess. Your real bill is 4% higher than the slab math suggests.
- Using this for capital gains or business income. This calculator covers salary and other-source income only. Equity LTCG/STCG have separate rates — see the CAGR Calculator to measure investment returns.
Planning Your Tax
If the Old Regime wins for you, fill the gaps: max out 80C via PPF (tax-free and government-guaranteed) or a recurring deposit habit; add ₹50,000 NPS under 80CCD(1B). If the New Regime wins, invest what you save — project it with the SIP Calculator. Either way, compare your investments’ post-tax growth using the CAGR Calculator.
Disclaimer: this calculator provides an estimate for individual salaried/pension taxpayers for FY 2026-27 (AY 2027-28). It excludes capital gains, business income, employer NPS 80CCD(2), and special-rate incomes. It is not tax advice — consult a chartered accountant for filing decisions.
Accuracy & Sources
Last reviewed: July 2026. Formula source: Income-tax Act slab rates for FY 2026-27 (AY 2027-28), Finance Act provisions. All calculations run in your browser. No data is sent to any server.
Frequently Asked Questions
After Budget 2025 raised the rebate to ₹12 lakh, the New Regime wins for most salaried taxpayers unless they claim large deductions. Rule of thumb: the Old Regime is worth checking only if your deductions beyond the standard deduction (80C + 80D + HRA + home loan interest + NPS) are substantial — typically ₹4–5 lakh or more at higher incomes. This calculator computes both regimes side by side so you get your exact answer, not a rule of thumb.
Yes, for salaried taxpayers in the New Regime. The ₹75,000 standard deduction brings ₹12,75,000 of salary down to ₹12,00,000 of taxable income, and the Section 87A rebate (up to ₹60,000) wipes out the entire slab tax at that level. Budget 2026 kept this structure unchanged. Note: the rebate applies to regular income only, not special-rate income like capital gains.
Marginal relief ensures that earning slightly more than ₹12 lakh taxable never costs more than the extra income. At ₹12,05,000 taxable, slab tax would be ₹60,750 — but marginal relief caps the tax at ₹5,000 (the amount above ₹12L), so you pay ₹5,200 after cess. The relief phases out around ₹12.71 lakh taxable, beyond which normal slab tax applies. The Old Regime's ₹5 lakh rebate has no such relief — it is a hard cliff.
Very few. The ₹75,000 standard deduction (salary/pension) and employer NPS contributions under 80CCD(2) are the main ones. Popular deductions like 80C (PPF, ELSS, LIC), 80D (health insurance), HRA exemption, and home loan interest under 24(b) for self-occupied property are NOT available. That is the trade-off: the New Regime offers lower rates instead of deductions.
Surcharge is a percentage of your tax (not income): 10% above ₹50L, 15% above ₹1Cr, 25% above ₹2Cr, and 37% above ₹5Cr in the Old Regime — the New Regime caps it at 25%. Marginal relief applies at each threshold: your extra tax can never exceed your extra income over the threshold. Health & Education Cess of 4% then applies on tax plus surcharge.
In the Old Regime, senior citizens (60–79) get a ₹3,00,000 basic exemption and super seniors (80+) get ₹5,00,000, versus ₹2,50,000 for others. The Section 80D health insurance limit doubles to ₹50,000 at 60+. Seniors also get a higher TDS threshold on deposit interest (₹50,000). The New Regime offers no age-based slab benefit — its slabs are identical at every age, which is why the Old Regime deserves a closer look after 60.
No. Capital gains (from stocks, mutual funds, property, or gold) are taxed at special rates with their own rules — equity LTCG at 12.5% above ₹1.25 lakh per year, for example — and are outside this calculator's scope, along with business income and foreign income. This tool covers salary/pension and other-source income (like interest) for individual taxpayers, which is the situation of the vast majority of Indian filers.
If you use the Old Regime: max out Section 80C (₹1.5L via PPF, ELSS, EPF, or tax-saver FD), add ₹50,000 NPS under 80CCD(1B), claim health insurance under 80D, and claim HRA if you pay rent. A 30%-bracket taxpayer using the full 80C + NPS saves about ₹62,400 a year including cess. If you use the New Regime, deductions don't apply — instead, invest the tax you save through SIPs or PPF so the benefit compounds. Run both regimes above to see which applies to you.