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Income Tax Calculator

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How to use the Income Tax Calculator

Calculate your FY 2026-27 tax liability and compare new vs old regime in seconds.

  1. Enter your annual gross income

    Enter your total annual income before any deductions: sum of all salary components, or business income if self-employed.

  2. Select employment type and age group

    Choose "Salaried" to apply the standard deduction (₹75K new regime / ₹50K old regime). Select your age group: senior (60–79) and super senior (80+) taxpayers get higher basic exemptions under the old regime.

  3. Enter old regime deductions

    Fill in 80C investments (max ₹1.5L), 80D health insurance, 80CCD(1B) NPS contributions (max ₹50K), home loan interest under Section 24b (max ₹2L), HRA exemption, and any other deductions. These apply only to the old regime calculation.

  4. Compare the two regimes side by side

    See total tax, effective rate, and monthly take-home for both regimes. The recommended regime banner shows which saves you more, and by how much.

  5. Review the slab-wise tax breakdown chart

    The bar chart shows how much tax you pay within each income slab under the recommended regime, useful for understanding where your marginal rate kicks in.

Frequently asked questions

What are the income tax slabs for FY 2026-27?

The new regime slabs for FY 2026-27 are unchanged from FY 2025-26: ₹0–4L at 0%, ₹4L–8L at 5%, ₹8L–12L at 10%, ₹12L–16L at 15%, ₹16L–20L at 20%, ₹20L–24L at 25%, above ₹24L at 30%. Salaried employees get a ₹75,000 standard deduction, and Section 87A rebate makes net taxable income up to ₹12 lakh effectively tax-free. The old regime slabs vary by age group (see the senior citizen question below).

What are the old regime income tax slabs for senior citizens?

The old regime has age-based basic exemption limits. Below 60: ₹2.5L exemption (0–2.5L at 0%, 2.5–5L at 5%, 5–10L at 20%, above 10L at 30%). Senior citizens aged 60–79: ₹3L exemption (0–3L at 0%, 3–5L at 5%, 5–10L at 20%, above 10L at 30%). Super senior citizens aged 80+: ₹5L exemption (0–5L at 0%, 5–10L at 20%, above 10L at 30%). The new regime uses the same slabs for all age groups.

Which tax regime should I choose: new or old?

The new regime wins for most salaried taxpayers earning under ₹15L with standard deductions only. The old regime benefits those with high deductions: maximum 80C (₹1.5L), health insurance 80D, NPS 80CCD(1B) (₹50K), home loan interest Section 24b (₹2L), and HRA exemption. The crossover point varies with your deduction mix; use the calculator to compare both regimes with your actual numbers. The new regime is the default from FY 2023-24; you must explicitly opt into the old regime when filing.

What is the Section 87A rebate and how much is it for FY 2026-27?

Section 87A eliminates tax for lower-income taxpayers. Under the new regime: if your net taxable income is ₹12 lakh or below, the rebate equals your full tax liability up to ₹60,000, making your tax zero. Under the old regime: if net taxable income is ₹5 lakh or below, the rebate equals full tax up to ₹12,500. The rebate applies only on income tax before surcharge and cess, and only to resident individuals (not HUFs or NRIs).

What is NPS Section 80CCD(1B) and how much can I deduct?

Section 80CCD(1B) is an additional deduction for NPS (National Pension System) contributions, separate from the ₹1.5L limit of Section 80C. You can claim up to ₹50,000 extra for voluntary NPS contributions under Tier I. This deduction is available only under the old regime. Combined with maximum 80C (₹1.5L), 80D (₹50K), and home loan interest (₹2L), it can push your old-regime total deductions significantly above the new-regime equivalent.

How does home loan interest deduction (Section 24b) work?

Section 24b allows you to deduct up to ₹2 lakh per year in home loan interest paid on a self-occupied property. This deduction is only available under the old tax regime. For a let-out property, there is no cap, but losses beyond ₹2L cannot be set off against salary income. The principal repayment can separately be claimed under Section 80C (up to ₹1.5L combined limit). Both deductions together make the old regime attractive for home loan holders.

What is Health and Education Cess?

A 4% Health and Education Cess is levied on total income tax including surcharge. There is no way to avoid it: it applies to every taxpayer irrespective of income, age, or regime choice. Cess is calculated on (income tax + surcharge) and added to arrive at total tax payable.

What is surcharge on income tax and who pays it?

Surcharge is an additional levy on high-income earners. It applies only when taxable income exceeds ₹50 lakh. Rates: 10% for ₹50L–₹1Cr, 15% for ₹1Cr–₹2Cr, 25% for ₹2Cr–₹5Cr, 37% for above ₹5Cr (but capped at 25% under the new tax regime). Marginal relief applies near each threshold to prevent the surcharge from exceeding the income gained above the threshold.

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

Yes. Budget 2026 made no changes to income tax slabs, rebates, or deduction limits, so the FY 2025-26 parameters carry forward unchanged to FY 2026-27 (AY 2027-28). The calculator handles all key scenarios: age-based old-regime slabs, standard deduction, 87A rebate, surcharge, marginal relief, and 4% cess. Always confirm your final tax liability with a CA or the official income tax portal before filing.

New vs old tax regime — a plain-English guide to choosing correctly

The slabs, the deductions, the crossover income, and a framework for deciding which regime saves you more money.

The two regimes — why India has both

India's income tax system now offers two parallel regimes: the new tax regime (introduced in FY 2020-21, revised in FY 2023-24, further improved in FY 2025-26) and the old tax regime (unchanged since 2017 except for standard deduction updates).

The new regime offers lower base rates but removes most deductions. The old regime keeps deductions — 80C, 80D, HRA, home loan interest — but applies higher slab rates. The government designed this to simplify filing for most taxpayers (who actually have fewer deductions than they think) while preserving the old system for those who benefit from it.

The new regime is the default from FY 2023-24 onward. You must actively opt for the old regime each year when filing.

New regime slabs — FY 2025-26 (same for FY 2026-27)

The February 2025 budget significantly revised the new regime slabs. Budget 2026 made no changes, so these apply for both FY 2025-26 and FY 2026-27:

| Income slab | Tax rate | |---|---| | Up to ₹4 lakh | 0% | | ₹4L – ₹8L | 5% | | ₹8L – ₹12L | 10% | | ₹12L – ₹16L | 15% | | ₹16L – ₹20L | 20% | | ₹20L – ₹24L | 25% | | Above ₹24L | 30% |

Standard deduction (salaried): ₹75,000 Rebate u/s 87A: If net taxable income ≤ ₹12L, rebate = full tax (up to ₹60,000) → effectively zero tax for income ≤ ₹12.75L (gross, for salaried)

Old regime slabs — unchanged

| Income slab | Tax rate | |---|---| | Up to ₹2.5 lakh | 0% | | ₹2.5L – ₹5L | 5% | | ₹5L – ₹10L | 20% | | Above ₹10L | 30% |

Standard deduction (salaried): ₹50,000 Rebate u/s 87A: If net taxable income ≤ ₹5L, rebate = full tax (up to ₹12,500)

Who should pick which regime?

The new regime wins for most taxpayers today. Here's the crossover analysis:

New regime wins when:

  • You have few or no deductions (common for HRA-free, EPF-only employees)
  • Your income is ₹15L or below (new regime's lower rates and ₹12L rebate dominate)
  • You're self-employed (no standard deduction in old regime was already a penalty)

Old regime wins when:

  • Your deductions are large enough to offset the higher slab rates
  • The crossover typically occurs when total deductions exceed ₹3.5L–₹5L for incomes in the ₹15L–₹25L range

Rough rule of thumb: If your total 80C + 80D + HRA + other deductions exceed ₹3.75 lakh, the old regime might win. Use the calculator to find your exact answer.

Understanding the rebate (Section 87A)

The rebate is the most misunderstood part of the new regime.

Under the new regime: If your net taxable income (after standard deduction) is ₹12 lakh or less, the rebate equals your entire tax liability (up to ₹60,000). Effective tax = zero.

This means a salaried person with gross income of ₹12.75L:

  • Minus ₹75K standard deduction = ₹12L taxable income
  • Tax on ₹12L = ₹60,000 (5% on ₹4L + 10% on ₹4L)
  • Rebate = ₹60,000
  • Final tax = ₹0

But if income is ₹12.76L (just ₹1,000 above the threshold):

  • Tax = ₹60,150 (no rebate since income > ₹12L)
  • This "jump" creates marginal relief provisions for incomes just above ₹12L

Surcharge — the levy no one talks about

Surcharge applies only when your total income exceeds ₹50 lakh. It's an additional percentage on your income tax (not on income):

| Income | Surcharge rate (New) | Surcharge rate (Old) | |---|---|---| | ₹50L – ₹1Cr | 10% | 10% | | ₹1Cr – ₹2Cr | 15% | 15% | | ₹2Cr – ₹5Cr | 25% | 25% | | Above ₹5Cr | 25% (capped) | 37% |

The new regime caps surcharge at 25% — a significant benefit for very high earners who previously faced the 37% surcharge under the old regime.

Cess — unavoidable 4%

Health and Education Cess at 4% applies to everyone — on (income tax + surcharge). There's no way to avoid it. No deduction offsets it. Budget changes never touch it (it hasn't changed since FY 2018-19).

Verify before filing

Income tax law changes every year. The February budget often introduces new deductions, changes slab structures, or modifies existing rules. This calculator reflects current FY 2025-26/2026-27 rules (Budget 2026 made no changes).

For final tax liability, always verify with:

  • The official income tax portal (incometax.gov.in)
  • A qualified Chartered Accountant for income above ₹10L or complex situations (capital gains, business income, foreign assets)

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