Income Tax Calculator FY 2026-27 – New & Old Regime

Income Tax Calculator for FY 2026-27

Use this free income tax calculator to estimate your tax liability for FY 2026-27 under India's new and old tax regimes. Enter your annual gross income, select whether you are salaried or a pensioner, and add eligible old-regime deductions to compare both options.

Income Tax Calculator

Calculate your income tax liability for FY 2026-27 (AY 2027-28) under the new or old tax regime. Slabs as per Budget 2026 (unchanged from FY 2025-26).

Annual Gross Income (₹)

Salaried / Pensioner?Yes (standard deduction applies)No

Section 80C (max ₹1.5L)

Section 80D (health insurance)

Home Loan Interest 24(b) (max ₹2L)

HRA / LTA Exemption

Other Deductions (80CCD(1B), 80G, 80E etc.)

Total Tax Payable

₹0

Taxable Income₹0

Income Tax (after 87A rebate)₹0

Health & Education Cess (4%)₹0

Effective Tax Rate0%

Total tax under Old Regime₹0

New regime: standard deduction ₹75,000, zero tax up to ₹12L taxable income (87A rebate + marginal relief). Old regime: SD ₹50,000, rebate up to ₹5L. Surcharge on income above ₹50L not included. Estimates only — consult a tax advisor for filing.

Reviewed on July 13, 2026 using official Income Tax Department and Union Budget documents.

The result shows estimated taxable income, tax after the Section 87A rebate, 4% Health and Education Cess, effective tax rate and the tax payable under the alternative regime.

Quick answer: Under the new regime, eligible resident individuals can receive a Section 87A rebate when taxable income does not exceed ₹12 lakh. With the ₹75,000 standard deduction, a salaried individual may therefore have no regular income tax on gross salary up to ₹12.75 lakh. Special-rate income, such as certain capital gains, can change the result.

How to use the income tax calculator

1. Select New Regime or Old Regime.
2. Enter your total annual gross income before deductions.
3. Select whether you are a salaried employee or pensioner so the applicable standard deduction can be included.
4. For the old regime, enter eligible amounts for Section 80C, Section 80D, home-loan interest under Section 24(b), HRA/LTA and other deductions.
5. Review the estimated tax and compare it with the alternative regime shown in the result card.

New regimeLower slab rates and fewer commonly claimed deductions. It is the default regime for eligible taxpayers.

Old regimeHigher slab rates, but eligible taxpayers can use deductions and exemptions to reduce taxable income.

New tax regime slabs for FY 2026-27

The calculator uses the following new-regime slab rates for tax year 2026-27:

Taxable income	Income tax rate
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%

Slab rates are applied progressively. Only the portion of income falling within a slab is taxed at that slab's rate.

Old tax regime slabs used by this calculator

The simplified old-regime estimate uses the general slabs for an individual below 60 years of age. Senior and super-senior citizens may have different basic exemption limits under the old regime.

Taxable income	Income tax rate
Up to ₹2,50,000	Nil
₹2,50,001 to ₹5,00,000	5%
₹5,00,001 to ₹10,00,000	20%
Above ₹10,00,000	30%

How the calculator estimates income tax

Standard deduction

• New regime: ₹75,000 for eligible salaried employees and pensioners.
• Old regime: ₹50,000 for eligible salaried employees and pensioners.

Eligible deductions and exemptions

When the old regime is selected, the calculator allows entries for Section 80C, Section 80D, home-loan interest under Section 24(b), HRA/LTA and other deductions. Enter only amounts for which you are legally eligible and have the required records.

Progressive slab calculation

Estimated taxable income = Gross income − applicable standard deduction − eligible deductions and exemptions

Section 87A rebate

For an eligible resident individual, the calculator applies a rebate of up to ₹60,000 under the new regime when taxable income does not exceed ₹12 lakh. Under the old regime, the rebate is up to ₹12,500 when taxable income does not exceed ₹5 lakh.

Health and Education Cess

A 4% Health and Education Cess is added to the calculated income tax. The current tool does not include surcharge on income above ₹50 lakh.

Example: salary of ₹12.75 lakh

For a salaried resident individual with annual gross salary of ₹12,75,000 and no special-rate income:

• Gross salary: ₹12,75,000
• New-regime standard deduction: ₹75,000
• Estimated taxable income: ₹12,00,000
• Tax before rebate: ₹60,000
• Maximum eligible Section 87A rebate: ₹60,000
• Estimated tax after rebate: Nil

The old-regime comparison depends on the deductions entered. The calculator pre-fills Section 80C with ₹1,50,000 when the old regime is opened; change this value if it does not apply to you.

Calculator limitation: This is a planning estimate, not an income-tax return. Surcharge, age-specific old-regime slabs, all special-rate income, loss set-off, detailed exemptions and every rule applicable to an individual return may not be included.

Which tax regime may be better?

The new regime may be simpler for taxpayers who claim few deductions. The old regime may produce a lower tax amount when eligible deductions and exemptions are substantial. The better option depends on your income mix, HRA, home-loan interest, investments, health-insurance premiums and other eligible claims.

Related tax calculators

Old vs New Tax Regime Section 87A Rebate Calculator Budget 2026 Tax Calculator HRA Calculator TDS on Salary Calculator Advance Tax Calculator Capital Gains Tax Calculator Salary Take-Home Calculator

Frequently asked questions

Is this income tax calculator updated for FY 2026-27?

Yes. It uses the tax-year 2026-27 slab rates shown in the Union Budget 2026 documents. Tax rules can change, so review the update date and official guidance before filing.

Is income up to ₹12 lakh completely tax-free?

Under the new regime, an eligible resident individual with taxable income up to ₹12 lakh can receive a Section 87A rebate of up to ₹60,000. Special-rate income may be treated differently.

Why can a salaried person earning ₹12.75 lakh have zero tax?

The ₹75,000 standard deduction can reduce gross salary of ₹12.75 lakh to taxable income of ₹12 lakh. If the individual is eligible for the new-regime Section 87A rebate and has no income requiring different treatment, regular income tax may reduce to zero.

What is the difference between a tax slab and Section 87A rebate?

Tax slabs calculate tax progressively on taxable income. Section 87A is a rebate applied to eligible tax after the slab calculation, subject to the applicable income and rebate limits.

Does the calculator include the standard deduction?

Yes. When “Salaried / Pensioner” is selected, it applies ₹75,000 under the new regime or ₹50,000 under the old regime.

Can I enter Section 80C, 80D, HRA and home-loan interest?

Yes. These inputs appear after selecting the old regime. Enter only amounts for which you are eligible.

Does this calculator include capital gains tax?

No. Capital gains and other special-rate income may not follow the regular slab and rebate calculation used here. Use the Capital Gains Tax Calculator and obtain professional advice when necessary.

Does the estimate include surcharge and cess?

The calculator includes 4% Health and Education Cess. It does not include surcharge for income above ₹50 lakh.

Can I use this result to file my income-tax return?

Use it for initial planning and regime comparison only. Verify the final result through the official portal or a qualified tax professional.

Official sources

• Union Budget 2026 – Memorandum Explaining the Finance Bill
• Income Tax Department e-Filing Portal
• Press Information Bureau – New-regime rebate and standard deduction

Disclaimer: Results are estimates for educational and planning purposes and do not constitute tax, legal, accounting or financial advice. Verify current rules and consult a qualified professional before filing or making a financial decision.