How to use the income tax calculator
Enter your gross yearly income and, if you are salaried or a pensioner, keep “Salary or pension” selected to get the standard deduction. Then enter the deductions you can claim. The calculator works out your tax under both regimes side by side and tells you which one costs less.
For example, a salary of ₹15 lakh with ₹1.5 lakh in 80C investments and ₹25,000 of health insurance pays about ₹97,500 under the new regime and ₹2,02,800 under the old one. With much larger deductions, such as ₹3 lakh of HRA, ₹2 lakh of home loan interest, ₹1.5 lakh under 80C, ₹50,000 of health insurance for self and parents (80D) and ₹50,000 in NPS on a ₹20 lakh salary, the old regime comes out about ₹13,000 cheaper.
Tax slabs for FY 2026-27
Budget 2026 kept the slabs, the ₹12 lakh rebate limit and the ₹75,000 standard deduction unchanged from last year. From 1 April 2026 the Income-tax Act, 2025 replaces the 1961 Act and renames the year “tax year 2026-27”; section numbers changed too (80C is now section 123, 87A is now section 156), but the amounts are the same. This page uses the familiar old section numbers.
| New regime (default) | Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4 lakh – ₹8 lakh | 5% |
| ₹8 lakh – ₹12 lakh | 10% |
| ₹12 lakh – ₹16 lakh | 15% |
| ₹16 lakh – ₹20 lakh | 20% |
| ₹20 lakh – ₹24 lakh | 25% |
| Above ₹24 lakh | 30% |
| Old regime (below 60) | Rate |
|---|---|
| Up to ₹2.5 lakh | Nil |
| ₹2.5 lakh – ₹5 lakh | 5% |
| ₹5 lakh – ₹10 lakh | 20% |
| Above ₹10 lakh | 30% |
In the old regime the nil slab is ₹3 lakh for ages 60–79 and ₹5 lakh for 80 and above.
Rebate, surcharge and cess
- Rebate (Section 87A, now section 156): up to ₹60,000 in the new regime for taxable income up to ₹12 lakh, and up to ₹12,500 in the old regime for income up to ₹5 lakh. Just above ₹12 lakh, marginal relief keeps your tax from exceeding the extra income.
- Surcharge: 10% above ₹50 lakh, 15% above ₹1 crore and 25% above ₹2 crore. The old regime adds 37% above ₹5 crore; the new regime caps it at 25%. Marginal relief applies at each threshold.
- Cess: 4% health and education cess on tax plus surcharge.
Deductions allowed in each regime
| Deduction | New | Old |
|---|---|---|
| Standard deduction (salary, pension) | ₹75,000 | ₹50,000 |
| Employer’s NPS contribution, 80CCD(2) | Yes | Yes |
| 80C, 80D, HRA, home loan interest, 80CCD(1B), 80E, 80G | No | Yes |
This calculator covers resident individuals with income taxed at normal rates. Capital gains on shares, mutual funds and property are taxed at special rates and are not included.
Frequently asked questions
What are the new regime tax slabs for FY 2026-27?
Up to ₹4 lakh: nil. ₹4–8 lakh: 5%. ₹8–12 lakh: 10%. ₹12–16 lakh: 15%. ₹16–20 lakh: 20%. ₹20–24 lakh: 25%. Above ₹24 lakh: 30%. Budget 2026 kept these unchanged from FY 2025-26.
Is income up to ₹12 lakh tax-free?
Yes, under the new regime the rebate of up to ₹60,000 (Section 87A, now section 156 of the Income-tax Act, 2025) makes taxable income up to ₹12 lakh tax-free. Salaried people also get a ₹75,000 standard deduction, so a salary of up to ₹12.75 lakh pays no tax. The rebate does not cover special-rate income such as capital gains.
Which regime is better for me?
The old regime wins only if your deductions are large: typically ₹4–8 lakh or more of 80C, 80D, HRA, home loan interest and NPS combined, depending on income. Enter your figures above to compare exactly.
What is marginal relief in the new regime?
If your taxable income is just above ₹12 lakh, your tax cannot be more than the income above ₹12 lakh. For example, at ₹12.1 lakh taxable income you pay ₹10,000 plus cess, not the full slab tax of ₹61,500.
Can I switch between regimes?
Salaried people and pensioners can choose a regime every year when filing their return. Those with business income can switch back from the old regime to the new only once.
What are the old regime slabs?
Up to ₹2.5 lakh nil (₹3 lakh for ages 60–79, ₹5 lakh for 80+), 5% up to ₹5 lakh, 20% from ₹5–10 lakh and 30% above ₹10 lakh, with a rebate that makes income up to ₹5 lakh tax-free.
Last reviewed: 13-10-2026. Rates and rules are checked against official sources; tell us if something has changed. Contact