Calculate your income tax for FY 2026-27 (AY 2027-28) — Compare New vs Old Tax Regime with deductions, surcharge & cess
Basic + DA + HRA + allowances before deductions
Disclaimer: This calculator provides estimates based on announced tax slabs for FY 2026-27. The new tax regime is the default from FY 2024-25. Old regime surcharge of 37% applies for income above ₹5 Crore. 80TTA/80TTB interest deductions are auto-computed from interest income in old regime. Consult a qualified chartered accountant for personalised advice. Tax laws may change via Budget notifications or CBDT circulars.
Income tax in India is calculated on a progressive slab system — different portions of your income are taxed at different rates, with higher income attracting a higher marginal rate. Since FY 2023-24, every individual taxpayer chooses between two parallel systems each year: the New Tax Regime (lower rates, almost no deductions) and the Old Tax Regime (higher rates, but a wide range of deductions and exemptions). For FY 2026-27, the New Tax Regime is the default — you must actively opt for the Old Regime if you want to use it.
Choose FY 2026-27 or FY 2025-26 and your age category — Below 60, Senior, or Super Senior — to apply the correct slabs.
Select New or Old Regime as your starting point — you can compare both side by side afterward in the Regime Comparison section.
Add gross salary, other income, interest income, and rental income where applicable.
Enter 80C/80D/HRA (old regime) or employer NPS (new regime), then read your tax, surcharge, and cess instantly.
The Union Budget 2026 made no changes to the new regime slabs from FY 2025-26 — the structure introduced in Budget 2025 continues to apply for FY 2026-27.
| Annual Income Slab | Tax Rate |
|---|---|
| ₹0 – ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Because of the ₹75,000 standard deduction plus the ₹60,000 rebate, a salaried individual's gross salary can be up to roughly ₹12,75,000 in FY 2026-27 with zero net tax payable under the new regime, before accounting for any other income.
₹75,000 for salaried employees and pensioners, deducted automatically from gross salary before computing taxable income. Not available against non-salary income.
Taxable income up to ₹12,00,000 qualifies for a rebate of up to ₹60,000 — bringing tax liability to zero. Marginal relief applies just above this threshold so tax doesn't jump sharply.
Employer's contribution to your NPS account is deductible up to 14% of Basic + DA, even under the new regime — one of the few deductions still allowed.
The lower of ₹25,000 or one-third of family pension received is deductible — raised from ₹15,000 in a recent Budget.
The old regime's slabs have remained unchanged for several years and continue to apply for taxpayers who opt for it in FY 2026-27:
| Annual Income Slab | Below 60 yrs | Senior (60–80 yrs) | Super Senior (80+ yrs) |
|---|---|---|---|
| Up to ₹2,50,000 | Nil | Nil | Nil |
| ₹2,50,001 – ₹3,00,000 | 5% | Nil | Nil |
| ₹3,00,001 – ₹5,00,000 | 5% | 5% | Nil |
| ₹5,00,001 – ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
The old regime's real advantage isn't its slabs (which are less generous than the new regime's), but the long list of deductions it permits. For most taxpayers without significant deductions, the old regime's higher rates and lower exemption make it the less attractive choice.
₹50,000 for salaried employees and pensioners under Section 16(ia), lower than the new regime's ₹75,000.
Taxable income up to ₹5,00,000 qualifies for a rebate of up to ₹12,500 — bringing tax liability to zero. Far lower than the new regime's ₹12 lakh threshold.
| Section | What It Covers | Maximum Deduction |
|---|---|---|
| 80C | PPF, ELSS, EPF, life insurance premium, 5-yr tax-saver FD, home loan principal, NSC | ₹1,50,000 |
| 80D | Health insurance premium (self + family; additional for senior citizen parents) | ₹25,000–₹1,00,000 depending on age |
| 80CCD(1B) | Additional self-contribution to NPS, over and above 80C | ₹50,000 |
| 24(b) | Home loan interest — self-occupied property | ₹2,00,000 |
| 24(b) | Home loan interest — let-out property | No cap against rental income; loss set-off capped at ₹2,00,000 |
| HRA Exemption | House Rent Allowance, based on rent paid, basic+DA, and city type | Lower of HRA received, rent paid minus 10% of Basic+DA, or 50%/40% of Basic+DA |
| 80TTA / 80TTB | Savings account interest (80TTA) or all bank interest for seniors (80TTB) | ₹10,000 (80TTA) / ₹50,000 (80TTB, seniors) |
| 80E, 80G, 80U | Education loan interest, donations, disability | Varies — no overall cap on most |
Above a certain income, an additional surcharge applies on top of the slab-based tax, and a flat 4% Health & Education Cess applies on the tax-plus-surcharge amount for every taxpayer, regardless of income level.
| Total Income | New Regime Surcharge | Old Regime Surcharge |
|---|---|---|
| Up to ₹50 lakh | Nil | Nil |
| ₹50 lakh – ₹1 crore | 10% | 10% |
| ₹1 crore – ₹2 crore | 15% | 15% |
| ₹2 crore – ₹5 crore | 25% (capped — no further increase) | 25% |
| Above ₹5 crore | 25% (capped — no further increase) | 37% |
New Regime: ₹12,75,000 − ₹75,000 (standard deduction) = ₹12,00,000 taxable income. Tax before rebate ≈ ₹60,000 (Nil on first ₹4L, 5% on next ₹4L = ₹20,000, 10% on next ₹4L = ₹40,000). Section 87A rebate of ₹60,000 brings this to zero tax.
Old Regime (no other deductions claimed): ₹12,75,000 − ₹50,000 (standard deduction) = ₹12,25,000 taxable income. Tax ≈ ₹1,80,000 before cess. The new regime is clearly better here.
Old Regime: ₹15,00,000 − ₹50,000 (standard deduction) − ₹1,50,000 (80C) − ₹1,00,000 (HRA, illustrative) − ₹50,000 (80D + 80CCD1B, illustrative) ≈ ₹11,50,000 taxable income → tax ≈ ₹1,72,500 before cess.
New Regime: ₹15,00,000 − ₹75,000 = ₹14,25,000 taxable income → tax ≈ ₹1,48,750 before cess.
Even with ₹3 lakh of deductions, the new regime can still come out ahead at this income level — which is exactly why running both calculations is essential rather than assuming the old regime automatically wins when you have deductions.
If you don't pay rent eligible for HRA, don't have a home loan, and don't invest heavily in 80C instruments, the new regime is almost always better due to its lower rates and higher rebate threshold.
A large HRA exemption alone can sometimes tip the balance toward the old regime, especially when combined with a full ₹1.5 lakh 80C investment.
The ₹2,00,000 home loan interest deduction (Section 24b) is significant and only available under the old regime — this alone often shifts the decision for homeowners with an active home loan.
Taxpayers who can stack 80C (₹1.5L) + 80D (₹25K–1L) + 80CCD(1B) (₹50K) + HRA + home loan interest (₹2L) may cross ₹4–5 lakh in total deductions, at which point the old regime often becomes more favourable.
Salaried employees should inform their employer of their chosen regime at the start of the year (or it defaults to the new regime) so TDS is deducted correctly.
For FY 2026-27 (AY 2027-28), the new regime slabs are: Nil up to ₹4 lakh, 5% from ₹4–8 lakh, 10% from ₹8–12 lakh, 15% from ₹12–16 lakh, 20% from ₹16–20 lakh, 25% from ₹20–24 lakh, and 30% above ₹24 lakh. These are unchanged from FY 2025-26, as Budget 2026 did not revise the new regime slab structure.
Yes — under the new regime, taxable income up to ₹12,00,000 qualifies for a Section 87A rebate of up to ₹60,000, which brings the net tax liability to zero. For salaried individuals, the ₹75,000 standard deduction is applied before this, so gross salary up to roughly ₹12,75,000 can result in zero tax payable, subject to having no other significant income.
It depends entirely on how much you can claim in deductions under the old regime. As a rough guide, if your total eligible deductions — 80C, 80D, HRA, home loan interest, and others — exceed roughly ₹4–4.5 lakh, the old regime often works out cheaper; below that, the new regime's lower rates and higher rebate threshold usually win. There is no single answer that applies to everyone — always compute both and compare.
The old regime allows Section 80C (up to ₹1.5 lakh for PPF, ELSS, life insurance, etc.), Section 80D (health insurance premium), HRA exemption, home loan interest under Section 24(b) (up to ₹2 lakh on a self-occupied property), Section 80CCD(1B) for additional NPS contribution, and several others. None of these are available under the new regime, except employer NPS contribution under Section 80CCD(2) and the family pension deduction, which both regimes allow.
For FY 2026-27, the standard deduction for salaried employees and pensioners is ₹75,000 under the new tax regime and ₹50,000 under the old tax regime. It is deducted automatically from gross salary income before any other deductions or exemptions are applied.
Surcharge applies once total income exceeds ₹50 lakh: 10% between ₹50 lakh–₹1 crore, 15% between ₹1–2 crore, and 25% above ₹2 crore under both regimes. The old regime additionally applies a 37% surcharge above ₹5 crore, while the new regime caps the surcharge at 25% regardless of how high income goes beyond ₹2 crore. Marginal relief ensures tax does not increase by more than the income exceeding each threshold.
Yes — a flat 4% Health & Education Cess applies on the total tax payable (including any surcharge) for every taxpayer with a tax liability, regardless of income level or regime chosen. It is unchanged from previous years for FY 2026-27.
Salaried individuals with no business or professional income can switch between the new and old regime every financial year when filing their return. Taxpayers with business or professional income have more restricted switching rules — they can typically switch back to the old regime only once after having opted for the new regime, so they should plan their choice more carefully.
Your employer's contribution to your NPS account is deductible under Section 80CCD(2), up to 14% of Basic + DA, and is available under both the new and old tax regime. Your own additional contribution to NPS, claimed under Section 80CCD(1B) for up to ₹50,000, is available only under the old regime and sits over and above the ₹1.5 lakh Section 80C limit.
A calculator using the correct, currently notified slabs, rebate rules, and surcharge thresholds for FY 2026-27 should closely match your actual tax liability for straightforward salary and interest income. More complex situations — capital gains with special tax treatment, business income, multiple house properties, or foreign income — may need additional adjustments not captured by a general-purpose calculator. Always verify your final figure with a tax professional before filing.
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