Income Tax Calculator India
Calculate your income tax liability for FY 2026-27 under old and new tax regime. Get slab-wise breakdown instantly.
About this calculator
This calculator compares your income tax under the old and the new regime for FY 2026-27 (assessment year 2027-28) so you can see which one costs less. Enter your gross income, your age, HRA exemption, Section 80C investments and any other deductions, and it shows taxable income, slab tax, rebate, surcharge, cess and the total under both regimes side by side.
The new regime is the default and has lower slab rates with a ₹75,000 standard deduction and almost no other deductions. A salaried person with income up to ₹12.75 lakh pays no tax at all because of the ₹60,000 rebate under Section 87A, and marginal relief softens the jump just above ₹12 lakh. The old regime still wins for people with large deductions, mainly a home loan, HRA and 80C. The right answer depends on your numbers, so run both.
How to use it
- Enter your Gross Annual Income.
- Choose your Age group. It changes the exemption limit under the old regime.
- Enter the HRA Exemption you can claim, if any.
- Enter the Standard Deduction (₹50,000 old, ₹75,000 new is applied automatically for salary), your 80C investments up to ₹1.5 lakh, and Other Deductions such as 80D and NPS.
- Press Calculate Tax and read the comparison. The tool tells you which regime saves more.
How the tax is computed
Taxable income is gross income minus the standard deduction and, in the old regime only, HRA, 80C and other deductions. Slab tax is applied to the taxable income. In the new regime the slabs are ₹4 lakh wide at 0, 5, 10, 15, 20, 25 and 30%. In the old regime the exemption is ₹2.5 lakh (₹3 lakh at 60, ₹5 lakh at 80) and rates are 5, 20 and 30%. A rebate under 87A removes the tax up to ₹12 lakh of taxable income in the new regime and ₹5 lakh in the old. Surcharge of 10, 15, 25 or 37% (25% maximum in the new regime) applies above ₹50 lakh, and 4% cess is added at the end.
Worked example
Gross salary ₹15,00,000, 80C ₹1.5 lakh, other deductions ₹50,000, no HRA
| Item | FY 2026-27 |
|---|---|
| Taxable income (old) | ₹12,50,000 |
| Total tax (old, with cess) | ₹1,95,000 |
| Taxable income (new) | ₹14,25,000 |
| Total tax (new, with cess) | ₹97,500 |
| Saving with new regime | ₹97,500 |
Here the new regime saves ₹97,500 even though the old one allows ₹2 lakh of deductions. To make the old regime win at this income you would need deductions of roughly ₹5 lakh or more, which usually means a large home loan interest claim on top of HRA.
Tips and common mistakes
- Run both regimes every year. The right choice changes when your deductions or salary change.
- Salaried employees can switch regime every year. Business income earners can switch only once back to the old regime after opting out.
- The old regime only wins when your total deductions are large, typically above ₹4 to ₹5 lakh at mid incomes.
- Employer NPS contribution under 80CCD(2) is allowed in the new regime too.
- Declare your regime to your employer in April so TDS matches your final liability.
Frequently asked questions
Which tax regime is better for FY 2026-27?
For most people with modest deductions the new regime is cheaper. The old regime can win if you claim HRA, a home loan, 80C and 80D that together exceed roughly ₹4 to ₹5 lakh.
What is the tax-free income limit in the new regime?
Up to ₹12 lakh of taxable income there is no tax because of the Section 87A rebate. For a salaried person that means gross salary up to ₹12.75 lakh.
What is the standard deduction?
₹75,000 in the new regime and ₹50,000 in the old regime for salaried employees and pensioners.
Is 4% cess included?
Yes. Health and education cess of 4% is added to tax plus surcharge, and the totals shown include it.
Does it include capital gains?
No. Capital gains and other special-rate incomes are taxed separately. Enter only income taxed at slab rates.
Can I rely on this for filing?
It is an accurate estimate for planning. File using your Form 16, AIS and the official e-filing utility, or ask a chartered accountant.