Income Tax Calculator
Calculate income tax for FY 2026-27. Compare new vs old regime with income heads, deductions, surcharge and cess.
Last updated: 10 August 2026. Supports FY 2026-27 (AY 2027-28) — verify on incometax.gov.in before filing.
Income tax in India
Income tax is a direct tax on individual earnings, charged in slabs under income-tax law as amended (historically the Income-tax Act, 1961, and subsequent Finance Acts). The new tax regime is the default; the old regime remains available as an opt-in for taxpayers who benefit from deductions.
How to use this calculator
1. Basic details — choose age band and whether you are salaried or self-employed. 2. Income — enter salary or business income, plus savings/deposit interest, rentals and other sources. 3. Deductions — add HRA inputs, 80C, 80D, NPS (including employer 80CCD(2)), loan interest, 80G and other deductions. Results always show tax under both regimes with surcharge and cess.
New vs old regime
| Feature | New regime | Old regime |
|---|---|---|
| Default status | Default for current FY | Opt-in each year (non-business) |
| Standard deduction (salaried) | ₹75,000 | ₹50,000 |
| Section 80C / HRA / 80D | Not available | Available within limits |
| Employer NPS 80CCD(2) | Available | Available |
| Section 87A rebate (FY 2026-27) | Up to ₹60,000 (taxable ≤ ₹12L) + marginal relief just above | Up to ₹12,500 (taxable ≤ ₹5L) |
| Max surcharge | 25% | 37% |
New regime slabs (FY 2026-27)
Nil up to ₹4 lakh; 5% (₹4–8L); 10% (₹8–12L); 15% (₹12–16L); 20% (₹16–20L); 25% (₹20–24L); 30% above ₹24 lakh. Section 87A rebate up to ₹60,000 makes taxable income up to ₹12 lakh effectively tax-free, with marginal relief applied just above that threshold.
How tax is computed here
Taxable income is estimated from the inputs you enter, then slab rates for the selected regime are applied. Surcharge (where applicable) and 4% health and education cess are added. Marginal relief is applied for Section 87A just above the rebate ceiling and at surcharge thresholds when relevant.
Worked example: Enter ₹12 lakh gross salary under the new regime with minimal deductions, calculate, then switch to the old regime with ₹1.5 lakh under 80C — compare the tax difference in the results panel.
Surcharge and cess
Surcharge applies when taxable income exceeds ₹50 lakh (10%, then 15%, 25%; old regime uses 37% above ₹5 crore while the new regime caps at 25%). This calculator applies marginal relief at those thresholds. A 4% health and education cess is charged on tax plus surcharge.
Related calculators
For employer-style declaration worksheets see the income tax planner. Estimate TDS on salary with our TDS calculator or plan tax-saving investments with the PPF calculator.
Frequently asked questions about income tax
Which financial year does this calculator use?
FY 2026-27 (Assessment Year 2027-28) — Budget 2025 new-regime slabs, ₹12 lakh Section 87A rebate with marginal relief just above the threshold, and current standard deductions. Verify on incometax.gov.in before filing.
Which tax regime is default in FY 2026-27?
The new tax regime under Section 115BAC is the default. Salaried taxpayers can usually switch to the old regime when filing if deductions make it beneficial. Taxpayers with business income face tighter switching rules.
What are the new regime tax slabs for FY 2026-27?
Nil up to ₹4 lakh; 5% (₹4–8L); 10% (₹8–12L); 15% (₹12–16L); 20% (₹16–20L); 25% (₹20–24L); 30% above ₹24 lakh. Verify on incometax.gov.in.
Is income up to ₹12 lakh tax-free under the new regime?
For FY 2026-27, resident individuals with taxable income up to ₹12 lakh get a Section 87A rebate of up to ₹60,000, effectively zero tax. Just above ₹12 lakh, marginal relief limits the extra tax so liability does not jump by more than the income above the threshold. Salaried taxpayers with ₹75,000 standard deduction can have up to ₹12.75 lakh gross salary with nil tax when fully within the rebate.
What is Section 87A marginal relief?
When taxable income is slightly above the 87A rebate ceiling (₹12 lakh under the new regime for FY 2026-27), marginal relief caps the additional tax so it does not exceed the income that exceeds the ceiling. This calculator models that relief along with surcharge marginal relief.
How do I use the three steps?
Basic details: choose age and salaried vs self-employed. Income: enter salary or business income plus interest, rent and other sources. Deductions: add HRA inputs, 80C/80D/NPS/loans/donations. Results always compare both regimes.
Does this calculator include surcharge?
Yes. Surcharge applies above ₹50 lakh taxable income (10% / 15% / 25%, and 37% only under the old regime above ₹5 crore). Marginal relief is applied at the surcharge thresholds. Capital gains and special rates are still excluded.
What is health and education cess?
A 4% cess on income tax plus surcharge, added to your final liability.
Are senior citizen slabs included?
Yes for the old regime (higher basic exemption at 60+ and 80+). The new regime has no age-based slab difference, but age is still collected for 80D limits.
Can I claim 80C in the new regime?
No. Most Chapter VI-A deductions are not available under the new regime. Employer contribution to NPS under Section 80CCD(2) remains allowed and is modelled in this calculator.
How is HRA calculated?
Under the old regime, HRA exemption is the minimum of: HRA received, rent paid minus 10% of basic+DA, and 50% of basic+DA (metro) or 40% (non-metro). Enter annual figures in the income step.
Is professional tax deductible?
Yes under the old regime for salaried employees (Section 16(iii)), up to ₹2,500 a year. Use the max preset or enter the amount actually paid. It is not applied under the new regime in this calculator.
What is the difference between exemption and deduction?
Exemptions (for example part of HRA) keep a portion of income out of the tax net. Deductions (80C, 80D, etc.) reduce taxable income after computing gross total income.
Does this calculate TDS?
No. It estimates full-year tax liability. Use our TDS calculator for illustrative monthly TDS under Section 192.
Is this official tax advice?
No. Rates reflect Union Budget provisions for FY 2026-27 under income-tax law as amended. Consult a chartered accountant before filing your ITR.
Income tax calculator FY 2026-27 — new vs old regime?
This page compares both regimes for FY 2026-27 (AY 2027-28), including the new-regime Section 87A rebate up to ₹12 lakh taxable income. Enter income and deductions once to see which regime saves more.
Income tax on ₹15 lakh salary FY 2026-27 — new regime vs old regime which is better?
Run both regimes with your deductions (80C, HRA, etc. where allowed). New regime has different slabs/rebate; old regime may win if deductions are large. Comparison is illustrative — confirm with a CA for filing.
How to calculate income tax for freelancers with GST turnover in India?
Start from taxable income after business expenses and applicable deductions, then apply regime slabs. GST is separate from income tax. This calculator estimates personal income-tax liability, not GST returns.
Disclaimer: Illustrative estimate only. Does not include capital gains, special rates or TDS credits. Not professional tax advice.
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