Income Tax Calculator FY 2026-27
Enter your income and deductions to see your tax under both the new and old regimes, with a clear verdict on which one costs you less.
Income details
Deductions and exemptions
These apply to the old regime. The new regime allows only the standard deduction and employer NPS contribution.
| Slab | Rate | Taxable in slab | Tax |
|---|
Income tax in India for FY 2026-27
Income tax is a direct tax the government levies on your earnings for a financial year, which runs from 1 April to 31 March. For FY 2026-27, assessed in AY 2027-28, individual taxpayers choose between two structures: the new regime, which applies by default and offers lower rates with almost no deductions, and the old regime, which keeps the familiar deductions but charges higher rates.
What changed this year. The Income Tax Act, 2025 came into force on 1 April 2026, replacing the Income Tax Act, 1961. Budget 2026 left the slab rates and thresholds untouched for both regimes, so the numbers below carry forward from last year. The filing deadline for individuals not requiring an audit was extended to 31 August.
New tax regime slabs
| Taxable income | Rate | Cumulative 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 |
Key points for the new regime
- Standard deduction of ₹75,000 for salaried employees and pensioners.
- Section 87A rebate up to ₹60,000, making tax nil on taxable income up to ₹12,00,000.
- A salary of about ₹12,75,000 can therefore attract no tax after the standard deduction.
- No higher exemption limit for senior or super senior citizens.
- Employer contribution to NPS under Section 80CCD(2) is still allowed.
Old tax regime slabs
| Taxable income | Below 60 | Age 60 to 80 | Above 80 |
|---|---|---|---|
| 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% |
Under the old regime the standard deduction is ₹50,000 and the Section 87A rebate is capped at ₹12,500, which removes tax entirely for taxable income up to ₹5,00,000.
Deductions available under the old regime
| Section | What it covers | Maximum |
|---|---|---|
| 80C | EPF, PPF, ELSS, life insurance premium, home loan principal, children's tuition, NSC, five-year FD | ₹1,50,000 |
| 80CCD(1B) | Additional NPS contribution, over and above 80C | ₹50,000 |
| 80D | Health insurance premium for self and family | ₹25,000, or ₹50,000 if senior citizen |
| 80D (parents) | Health insurance for parents | ₹25,000, or ₹50,000 if they are senior citizens |
| 24(b) | Interest on a home loan for a self-occupied property | ₹2,00,000 |
| 80E | Interest on an education loan | No cap, for up to 8 years |
| 80G | Donations to approved funds and institutions | 50% or 100% depending on the fund |
| 80TTA | Interest from a savings bank account | ₹10,000 |
| 80TTB | Interest income for senior citizens | ₹50,000 |
| HRA | House rent allowance, subject to the standard three-part test | Varies with rent, salary and city |
Which regime should you pick?
There is no universally better option. The answer depends on how much you genuinely claim as deductions. Work through the arithmetic rather than following a rule of thumb, because the break-even point shifts with your income level.
- Deductions below about ₹3,00,000: the new regime almost always wins, thanks to lower rates and the larger standard deduction.
- Deductions between ₹3,00,000 and ₹4,50,000: the two regimes are close. Run both figures through the calculator above.
- Deductions above about ₹4,50,000: the old regime often works out cheaper, particularly if you have a large home loan and pay rent.
Switching regimes. Salaried taxpayers may choose again each year when filing. Individuals with business or professional income who opt out of the new regime can generally return to it only once, so treat that decision as close to permanent.
How the calculation works
Worked example
Take a salaried employee earning ₹15,00,000 a year who claims ₹1,50,000 under 80C, ₹25,000 under 80D and ₹1,20,000 of HRA exemption.
| Step | New regime | Old regime |
|---|---|---|
| Gross income | ₹15,00,000 | ₹15,00,000 |
| Standard deduction | ₹75,000 | ₹50,000 |
| Other deductions | Nil | ₹2,95,000 |
| Taxable income | ₹14,25,000 | ₹11,55,000 |
| Tax before cess | ₹1,53,750 | ₹1,59,000 |
| Cess at 4% | ₹6,150 | ₹6,360 |
| Total tax | ₹1,59,900 | ₹1,65,360 |
In this example the new regime saves roughly ₹5,460. Add a home loan interest claim of ₹2,00,000 and the old regime moves ahead instead, which is exactly why comparing your own figures matters more than any general guidance.
Important dates
- 31 August: return filing deadline for individuals who do not need an audit.
- 31 October: deadline for taxpayers subject to audit.
- 15 June, 15 September, 15 December, 15 March: advance tax instalments where liability exceeds ₹10,000.
- 31 December: last date to file a revised return for the assessment year.
Frequently asked questions
The new regime is the default and offers lower slab rates with a 75,000 standard deduction, but almost no other deductions. The old regime charges higher rates while allowing 80C, 80D, HRA, home loan interest and other deductions. Which is cheaper depends entirely on how much you actually claim.
Under the new regime, taxable income up to 12,00,000 attracts no tax because of the Section 87A rebate of up to 60,000. With the 75,000 standard deduction, a salary of roughly 12,75,000 can be tax free. Under the old regime the threshold is 5,00,000 of taxable income.
Below roughly 3,00,000 of total deductions the new regime usually wins. Above roughly 4,50,000 the old regime often wins. Between those figures the two are close, so run both through the calculator with your real numbers rather than relying on a rule of thumb.
Salaried taxpayers may choose again each year when filing their return. Individuals with business or professional income who opt out of the new regime can generally return to it only once, so treat that choice as close to permanent.
A flat deduction from salary or pension income, requiring no proof or investment. It is 75,000 under the new regime and 50,000 under the old regime. It is not available against business income.
For individuals who do not require an audit, the deadline was extended to 31 August. Audited cases are due by 31 October. A revised return can be filed until 31 December of the assessment year. Late filing attracts a fee under Section 234F plus interest.
Yes. Health and Education Cess at 4% is levied on the tax computed after applying the Section 87A rebate, under both the old and new regimes. Our calculator includes it in the totals shown.