Budget 2026 Tax Calculator for Tax Year 2026–27
Use this free Budget 2026 tax calculator to compare the default new tax regime with the old regime for ordinary salary, pension and slab-rate income earned from 1 April 2026 to 31 March 2027. It estimates taxable income, resident-individual rebates, surcharge, 4% cess and potential tax savings.
Budget 2026 Tax Calculator
Compare individual income tax under the new and old regimes for Tax Year 2026–27. Budget 2026 kept the personal slab rates unchanged.
Estimated Better Regime
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Planning estimate for ordinary slab-rate income only. Final tax is rounded to the nearest ₹10.
Reviewed on July 13, 2026 using the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the official Budget 2026 memorandum.
Union Budget 2026 did not change the individual income-tax rates already enacted for Tax Year 2026–27. The Income-tax Act, 2025 applies from 1 April 2026, Section 202 contains the default new-regime slabs, and taxpayers who qualify may compare them with the old regime before choosing.
How to use the Budget 2026 tax calculator
- Select resident or non-resident status because the individual rebate is available only to residents.
- Select age; it changes old-regime slabs only for resident senior and super-senior individuals.
- Enter gross salary or pension before standard deduction.
- Add interest, rent or other income taxable at ordinary slab rates.
- Enter old-regime deductions and exemptions, excluding the standard deduction.
- Enter only deductions specifically allowed under the new regime, again excluding the standard deduction.
- Compare taxable income, total tax and savings under both regimes.
New tax regime slabs for Tax Year 2026–27
| Taxable income slab | Rate on that slab |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 to ₹8,00,000 | 5% |
| ₹8,00,001 to ₹12,00,000 | 10% |
| ₹12,00,001 to ₹16,00,000 | 15% |
| ₹16,00,001 to ₹20,00,000 | 20% |
| ₹20,00,001 to ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Section 156 rebate and marginal relief
A resident individual using the new regime can receive a rebate equal to the slab tax or ₹60,000, whichever is lower, when total income does not exceed ₹12 lakh. If total income is slightly above ₹12 lakh, marginal relief limits the pre-cess tax to the amount by which total income exceeds ₹12 lakh when the statutory condition is met.
Standard deduction for salary and pension
Section 19 allows a standard deduction of up to ₹75,000 when tax is computed under the default new regime and up to ₹50,000 in other cases. The calculator applies the deduction only against the salary or pension amount entered and never for more than that amount.
Old-regime slabs used in this calculator
| Resident individual | Basic exemption | Rates above the exemption |
|---|---|---|
| Below 60 | ₹2,50,000 | 5% to ₹5 lakh; 20% to ₹10 lakh; 30% above |
| Age 60 to 79 | ₹3,00,000 | 5% to ₹5 lakh; 20% to ₹10 lakh; 30% above |
| Age 80 or more | ₹5,00,000 | 20% to ₹10 lakh; 30% above |
Non-resident individuals do not receive the age-based higher exemption limits in this comparison. The old-regime Section 156 rebate is applied only to resident individuals with total income up to ₹5 lakh.
Budget 2026 tax calculation formula
The calculator also applies surcharge marginal relief at the relevant ₹50 lakh, ₹1 crore, ₹2 crore and, for the old regime, ₹5 crore boundaries. Special-rate income can alter the surcharge calculation and is outside this simplified comparison.
Budget 2026 comparison example
Assume a resident individual below age 60 has gross salary of ₹12,75,000, no other income, ₹2,00,000 of old-regime deductions and no additional new-regime deduction.
- New-regime taxable income: ₹12,00,000 after the ₹75,000 standard deduction.
- New-regime tax: nil after the resident-individual rebate.
- Old-regime taxable income: ₹10,25,000 after the ₹50,000 standard deduction and ₹2,00,000 deductions.
- Old-regime estimated tax: ₹1,24,800 including 4% cess.
In this example the new regime saves about ₹1,24,800. A higher amount of valid old-regime deductions or a different income mix can change the comparison.
What this calculator does not cover
- Capital gains, lottery income, virtual digital assets or any other special-rate income.
- Agricultural-income rate integration, foreign tax relief, AMT or business-loss adjustments.
- Exact eligibility limits and conditions for HRA, Chapter VIII deductions or employer contributions.
- TDS, advance tax, interest, late fees or final return filing.
Related tax tools
Frequently asked questions
Did Budget 2026 change the new-regime tax slabs?
What are the new tax regime slabs for Tax Year 2026–27?
Is income up to ₹12 lakh completely tax-free?
Why is ₹12.75 lakh salary often called tax-free?
Can a non-resident claim the ₹60,000 new-regime rebate?
What is marginal relief above ₹12 lakh?
What standard deduction is available in Tax Year 2026–27?
Does age change new-regime slabs?
Does this calculator include surcharge and cess?
Which regime should I choose after Budget 2026?
Official sources
- Government of India – Memorandum explaining Finance Bill, 2026
- CBDT – Income-tax Act, 2025 as amended by Finance Act, 2026
- Income Tax Department – Section 202 new tax regime and slabs
- Income Tax Department – Section 156 resident-individual rebate
- Income Tax Department – Section 19 salary deductions
- Income Tax Department – Tax Year 2026–27 rates, surcharge and cess
- Income Tax Department – Official income tax calculator
Disclaimer: This page provides an educational estimate, not tax, legal or filing advice. Actual tax depends on income classification, deduction eligibility, residency, regime-option rules, surcharge treatment, reliefs and the law applicable to your facts. Verify the result on the official portal or consult a qualified tax professional.