Income Tax Calculator

What your result means

The calculator shows both regimes side by side, so you can compare them line by line.

Below the table, the calculator names the regime with the lower total tax and shows how much you save with it.

How income tax is calculated

The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. It drops the old “financial year” and “assessment year” pair and uses a single tax year, so FY 2026-27 (AY 2027-28) is now called tax year 2026-27. Sections have new numbers too: the new regime rates sit in section 202. We still use the old names like 80C, 80D and 87A because most people know them.

The Finance Bill 2026 proposed no change to income tax rates for tax year 2026-27, so the slabs, rebate, surcharge and cess from FY 2025-26 carry on. That is why the numbers below match last year’s.

Step 1, taxable income. New regime: income − ₹75,000 standard deduction. Old regime: income − ₹50,000 standard deduction − your deductions. The standard deduction applies only to salary or pension.

Step 2, slab tax. Each slice of income is taxed at its own rate.

Step 3, rebate (87A). New regime: no tax if taxable income is ₹12 lakh or less. Just above ₹12 lakh, marginal relief caps your tax at the income above ₹12 lakh. Old regime: no tax if taxable income is ₹5 lakh or less, with no marginal relief.

Step 4, surcharge. 10% of tax above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore. The old regime charges 37% above ₹5 crore; the new regime stops at 25%. Marginal relief stops the surcharge from costing more than the income above each limit.

Step 5, cess. Add 4% of (tax + surcharge).

How to use the income tax calculator

1. Enter your annual income for FY 2026-27 (1 April 2026 to 31 March 2027).
2. Pick your age: below 60, 60 to 79, or 80 and above. Age only changes the old regime slabs.
3. Choose the income type: salary or pension (gets the standard deduction) or other income (does not).
4. Optional: fill in your old regime deductions: 80C (up to ₹1,50,000), 80D health insurance, HRA exemption, home loan interest on a self-occupied house (up to ₹2,00,000), NPS 80CCD(1B) (up to ₹50,000) and any other deductions.
5. Read both totals and the saving shown for the better regime.

Worked example

Priya is 32 and earns a salary of ₹15,00,000. In the old regime she claims ₹1,50,000 under 80C and ₹25,000 under 80D.

New regime

1. Taxable income: ₹15,00,000 − ₹75,000 = ₹14,25,000.
2. Slab tax: ₹0 + ₹20,000 (5% of ₹4 lakh) + ₹40,000 (10% of ₹4 lakh) + ₹33,750 (15% of ₹2,25,000) = ₹93,750.
3. No rebate (above ₹12 lakh) and no surcharge.
4. Cess: 4% of ₹93,750 = ₹3,750. Total: ₹97,500 (₹8,125 a month, 6.5% of income).

Old regime

1. Taxable income: ₹15,00,000 − ₹50,000 − ₹1,50,000 − ₹25,000 = ₹12,75,000.
2. Slab tax: ₹12,500 + ₹1,00,000 + ₹82,500 (30% of ₹2,75,000) = ₹1,95,000.
3. Cess: ₹7,800. Total: ₹2,02,800 (₹16,900 a month, 13.52% of income).

The new regime saves Priya ₹1,05,300. For the old regime to match it, she would need about ₹5,43,750 of deductions on top of the standard deduction.

Tax on common salaries in FY 2026-27

Here is the total tax, including 4% cess, for a salaried person below 60. The old regime is shown twice: with no deductions, and with ₹1,75,000 of deductions (full ₹1,50,000 under 80C plus ₹25,000 under 80D).

Look at the ₹13 lakh row. Taxable income is ₹12,25,000, only ₹25,000 over the rebate limit, so marginal relief caps the tax at ₹25,000 plus ₹1,000 cess. Without relief it would be ₹66,300.

How much in deductions makes the old regime worth it?

The old regime wins only when your deductions, on top of the standard deduction, cross the break-even amount for your salary. Below that, the new regime costs less.

From about ₹25 lakh upward, both regimes charge 30% on every extra rupee, so the gap stops growing and the break-even settles at ₹8 lakh. Very few salaried people reach that: the full ₹1,50,000 under 80C, ₹25,000 under 80D, ₹50,000 of NPS and the ₹2,00,000 home loan interest cap add up to ₹4,25,000, so you would also need a large HRA exemption.

New or old regime: which should you choose?

The new regime has lower rates and a bigger rebate but allows almost no deductions. The old regime has higher rates but lets you subtract 80C, 80D, HRA, home loan interest and more. So the answer depends on how much you can claim. Most people with small deductions pay less in the new regime. People with large HRA, home loan interest and full 80C and 80D claims sometimes pay less in the old one. Enter your real numbers and compare.

The new regime is the default (section 202 of the 2025 Act). To use the old one, you must opt out under section 202(4). If you have no business income, you choose in your ITR each year, so you can switch every year. If you have business or professional income, you opt out using a form before the due date, and you can come back to the new regime only once in your life.

Your return for tax year 2026-27 is due by 31 July 2027 if you file ITR-1 or ITR-2. Budget 2026 also gave more time to fix mistakes: a revised return can now be filed up to 31 March after the tax year, with a small fee if you revise after 31 December.

For the 18% GST on bills you pay, try the GST calculator. To plan tax-saving deposits, see the PPF calculator.

Limitations

• Special-rate income: capital gains, lottery and online game winnings are taxed at their own rates and are not covered.
• Agricultural income and its effect on slab rates is ignored.
• Employer NPS (80CCD(2)), which is allowed in both regimes, is not deducted.
• Residents only: the 87A rebate is for resident individuals.
• Rounding: your ITR rounds income and tax to the nearest ₹10, so the final figure can differ by a few rupees.
• Deduction limits: HRA, 80D and other limits depend on your rent, city, age and policy. The tool trusts the amounts you enter.

Key facts

• The Income-tax Act, 2025 came into effect on 1 April 2026, replacing the Income Tax Act, 1961. (Budget 2026-27 speech, PIB (opens in new tab))
• No change was proposed in income tax rates for tax year 2026-27. New regime rates are in section 202: nil up to ₹4 lakh, rising to 30% above ₹24 lakh. (Finance Bill 2026 memorandum (opens in new tab))
• The old regime slabs for tax year 2026-27 are unchanged: nil up to ₹2.5 lakh below 60, ₹3 lakh from 60 to 79 and ₹5 lakh at 80 and above. (Finance Bill 2026 memorandum (opens in new tab))
• The new regime rebate is up to ₹60,000 when taxable income does not exceed ₹12 lakh. (Income Tax Department (opens in new tab))
• The old regime rebate is up to ₹12,500 when taxable income does not exceed ₹5 lakh. (Income Tax Department (opens in new tab))
• Surcharge above ₹5 crore is 37% in the old regime and 25% in the new regime. (Income Tax Department (opens in new tab))
• Health and education cess is 4% of income tax plus surcharge in both regimes. (Income Tax Department (opens in new tab))
• ITR-1 and ITR-2 returns remain due on 31 July, and a revised return can be filed up to 31 March after the tax year, with a fee if revised after 31 December. (Budget 2026-27 speech, PIB (opens in new tab))
• Taxpayers with business income can leave the old regime and return to the new regime only once in their lifetime. (Income Tax Department (opens in new tab))