Income Tax Calculator FY 2026-27

Compare the old and new tax regimes on your actual income and deductions, and see which one leaves you with more.

New regime is better for you
₹97,500
total tax — ₹89,700 less than the other regime
The new regime costs you ₹97,500 against ₹1,87,200 under the old regime, a saving of ₹89,700. Your deductions are not large enough to overcome the new regime's lower rates and ₹75,000 standard deduction.
Tax under new regime₹97,500
Tax under old regime₹1,87,200
You save by choosing right₹89,700
Take-home after tax₹14,02,500
Effective tax rate6.5%
Approx monthly TDS₹8,125

About the Income Tax Calculator FY 2026-27

India runs two parallel personal tax systems. The new regime has wider slabs and lower rates but allows almost no deductions; the old regime taxes more heavily but lets you claim 80C, 80D, HRA, home loan interest and the rest. Since the new regime became the default, choosing correctly is worth tens of thousands of rupees a year.

The rule of thumb is a break-even around ₹3.5–4 lakh of total deductions: below that the new regime almost always wins, above it the old regime pulls ahead. But the rule is only a rule — this calculator computes both on your exact numbers, including surcharge, cess, the Section 87A rebate and marginal relief.

The formula

Tax = slab tax − 87A rebate + surcharge + 4% cess
New regime slabsNil to ₹4L · 5% to ₹8L · 10% to ₹12L · 15% to ₹16L · 20% to ₹20L · 25% to ₹24L · 30% above
Standard deduction₹75,000 new regime, ₹50,000 old regime, for salaried taxpayers
87A rebate₹60,000 where taxable income is up to ₹12 lakh (new regime)

Marginal relief is applied just above ₹12 lakh so that tax never exceeds the income earned beyond the threshold.

Things worth knowing

1
If your deductions total less than about ₹3.5 lakh, the new regime usually wins.
2
Salaried taxpayers can switch regimes every year at filing — you are not locked in by what you declared to your employer.
3
Employer NPS contributions under 80CCD(2) are deductible in both regimes. It is one of the few that survives in the new one.

Frequently asked questions

Under the new regime: 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. Budget 2026 left these unchanged from the previous year.

Yes, under the new regime. The Section 87A rebate of ₹60,000 wipes out the tax on taxable income up to ₹12 lakh. For a salaried taxpayer the ₹75,000 standard deduction pushes the effective threshold to ₹12.75 lakh of gross salary.

Add up your deductions. Below roughly ₹3.5–4 lakh the new regime almost always wins; above it the old regime usually does. The comparison above settles it for your exact numbers.

Salaried taxpayers can choose afresh every financial year when filing. Taxpayers with business or professional income can move from the new regime to the old only once, and cannot return.

The ₹75,000 standard deduction, the employer's NPS contribution under 80CCD(2), and a few specific exemptions. Section 80C, 80D, HRA and home loan interest on a self-occupied property are all unavailable.

Explore every calculator

55 free tools across loans, tax and investments — all with the full working shown.

Browse all tools