Income Tax Calculator India 2026-27 | Old vs New Regime
Updated for FY 2026–27 (AY 2027–28)

Free Income Tax Calculator with Old vs New Regime

Calculate your exact tax liability with our free income tax calculator, compare both regimes, and see your monthly take-home pay instantly.

100% Free ForeverInstant Side-by-Side Regime ComparisonUpdated for FY 2026–27 Rules & Slabs

Income Tax Calculator FY 2026–27

Instant estimate only. Your final filing may vary with complete income and documentation.

Tax computation formula
Total Tax = (Slab Tax – 87A Rebate + Surcharge) × 1.04
Slab Tax = sum of (income in each bracket × that bracket’s rate)
87A Rebate = up to ₹60,000 (New) / ₹12,500 (Old), with marginal relief near the threshold
Surcharge = 10–25% (New) or 10–37% (Old) of tax, above ₹50L taxable income, with marginal relief
× 1.04 = adds 4% health & education cess on tax + surcharge
FY 2026–27 slabs

Income Tax Brackets: New vs. Old Regime

See how your taxable income is taxed across brackets under each regime.

New Tax Regime (Default)

All individual taxpayers, regardless of age.

Standard deduction of ₹75,000 + Section 87A rebate: tax-free up to ₹12 lakh taxable income.
Up to ₹4,00,000Nil
₹4,00,001 to ₹8,00,0005%
₹8,00,001 to ₹12,00,00010%
₹12,00,001 to ₹16,00,00015%
₹16,00,001 to ₹20,00,00020%
₹20,00,001 to ₹24,00,00025%
Above ₹24,00,00030%

Old Tax Regime

Taxpayers with heavy deductions and senior citizens.

Standard deduction ₹50,000 + full 80C, 80D, HRA and home-loan exemptions.
Up to ₹2,50,000Nil
₹2,50,001 to ₹5,00,0005%
₹5,00,001 to ₹10,00,00020%
Above ₹10,00,00030%
₹3L basic exemption for seniors; ₹5L for super seniors.
Side-by-side comparison

Income Tax Calculator Old vs New Regime Deductions

Understand which exemptions you can claim and which ones you give up under each path.

Deduction / ExemptionNew Tax RegimeOld Tax Regime
Standard Deduction (Salaried)₹75,000 (Automatic)₹50,000 (Automatic)
Section 80C (PPF, ELSS, EPF, LIC)✕ Not Allowed✓ Up to ₹1,50,000
Section 80D (Health Insurance)✕ Not Allowed✓ ₹25,000 – ₹1,00,000
HRA✕ Not Allowed✓ Formula-based
Home Loan Interest (Self-Occupied)✕ Not Allowed✓ Up to ₹2,00,000
Employer NPS contribution✓ Up to 14% of basic✓ Up to 10% of basic
Section 87A tax rebate✓ Tax-free up to ₹12L taxable income✓ Tax-free up to ₹5L taxable income
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Helpful answers

Frequently Asked Questions

Yes, under the New Tax Regime. For FY 2026-27, the standard deduction of ₹75,000 combined with the enhanced Section 87A rebate effectively makes income up to ₹12,00,000 fully tax-free (₹12,75,000 for salaried individuals) under the New Tax Regime.

However, for the Old Regime, the 87A rebate is limited, meaning only income up to ₹5,00,000 (or ₹5,50,000 with standard deduction) is tax-free. If your total income is exactly ₹12L, your calculated tax liability becomes zero after applying the rebate.

There is no single answer, but here is a quick rule of thumb for FY 2026-27:

  • Choose New Regime if: You have a high salary but limited tax-saving investments (like PPF, ELSS, or insurance). Lower and simplified tax rates often make this the better option for middle-income earners.
  • Choose Old Regime if: You actively invest heavily in Section 80C, pay health insurance premiums (80D), or have a home loan. If your total deductions exceed ₹3.5 Lakh to ₹4 Lakh annually, the Old Regime might give you a lower tax bill.

Pro-tip: Use the calculator above to input your exact deductions and compare the final tax liability side-by-side in seconds!

The surcharge is an additional tax levied on the base income tax (not the total income) when your taxable income exceeds certain thresholds. It scales up as follows:

  • ₹50 Lakh to ₹1 Crore: 10% surcharge on base tax
  • ₹1 Crore to ₹2 Crore: 15% surcharge
  • ₹2 Crore to ₹5 Crore: 25% surcharge (under New Regime)
  • Above ₹5 Crore: 37% surcharge (under Old Regime) / 25% (under New Regime)

Important Note: The final surcharge is capped at 25% under the New Regime (up to 37% under Old). Additionally, a concept called Marginal Relief is applied near these boundaries to ensure that the surcharge paid does not exceed the extra income earned above the threshold.

Marginal Relief is a safeguard mechanism provided by the Income Tax Department to prevent taxpayers from paying more tax than the extra income they earn when crossing a specific surcharge threshold.

For example, if your taxable income is just ₹1 Crore, you would normally pay the 10% surcharge. If your income increases by just ₹1,000 and crosses to ₹1,00,01,000, the surcharge jumps to 15% on the base tax. Without marginal relief, the tax payable would increase by an amount far exceeding the ₹1,000 you actually earned.

Marginal Relief ensures that the increase in tax (including surcharge) is limited to the amount of income that exceeded the threshold, preventing unfair over-taxation at the limit.

To calculate income tax on salary, Start with your gross salary and subtract applicable deductions.

Example (New Regime): Suppose your gross annual salary is ₹13,00,000.
Subtract the ₹75,000 standard deduction to get a taxable income of ₹12,25,000.
Apply progressive slab rates: 0% on first ₹4L = ₹0; 5% on next ₹4L (₹4L–₹8L) = ₹20,000; 10% on next ₹4L (₹8L–₹12L) = ₹40,000; 15% on remaining ₹25,000 = ₹3,750.
Total slab tax = ₹63,750. Add 4% cess (₹2,550) = Final Tax Payable of ₹66,300.

Remember that tax is calculated progressively using slabs, meaning your income is broken into brackets rather than taxed at one single percentage. Calculate the tax owed in each applicable slab, sum them up, subtract any Section 87A rebate (if eligible), add surcharge if income exceeds ₹50 Lakh, and finally add 4% Health & Education Cess.

The surcharge is an extra tax levied on your base income tax liability (not your total income) when your taxable income crosses specific limits:

₹50 Lakh to ₹1 Crore: 10% surcharge on base tax
₹1 Crore to ₹2 Crore: 15% surcharge on base tax
Above ₹2 Crore: 25% surcharge under New Regime (capped at 25%) / up to 37% under Old Regime.

Note: Marginal relief applies near threshold boundaries so that your extra tax never exceeds your extra income earned over the threshold.

Salaried pensioners receive the standard deduction (₹75,000 under New Regime / ₹50,000 under Old Regime). Under the Old Tax Regime, senior citizens (60–80 years) enjoy a basic exemption of ₹3,00,000, and super senior citizens (80+ years) get ₹5,00,000 exemption. Senior citizens under the Old Regime can also claim up to ₹50,000 on savings & FD interest under Section 80TTB. Under the New Tax Regime, basic exemption is ₹4,00,000 across all age groups.

Interest earned from savings bank accounts falls under "Income from Other Sources." and is calculated like:

Under the Old Tax Regime, individual taxpayers below 60 can claim a deduction up to ₹10,000 under Section 80TTA. Senior citizens can claim up to ₹50,000 across savings and FD interest under Section 80TTB.

Under the New Tax Regime, 80TTA and 80TTB deductions are not available, so savings bank interest is added directly to your gross income and taxed at your applicable slab rate.

Disclaimer: This free income tax calculator online uses FY 2026–27 (AY 2027–28) rates. Final tax liability may vary based on official documentation and return filing. Calculations are educational estimates, not formal tax or financial advice. Consult a qualified CA for filing guidance.
This free income tax calculator online uses the official Income Tax Calculator FY 2026-27 (AY 2027–28) rates. Final tax liability may vary based on official documentation and return filing.

Calculations provided on this website are for educational and estimation purposes only and do not constitute formal tax or financial advice. Please consult a qualified Chartered Accountant (CA) for official filing guidance
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