Income Tax Calculator FY 2026-27 (New vs Old Regime)

Enter your yearly income and, if you want to compare, your old-regime deductions. The calculator works out tax under both regimes side by side, including the rebate, marginal relief just above ₹12 lakh, surcharge and the 4% health and education cess, and tells you which regime costs less.

Quick answer

For FY 2026-27 the new regime taxes income up to ₹4 lakh at nil, then 5%, 10%, 15%, 20% and 25% in ₹4 lakh steps, and 30% above ₹24 lakh. A rebate makes tax nil up to ₹12 lakh of taxable income, so a salaried person with the ₹75,000 standard deduction pays no tax up to ₹12.75 lakh. Budget 2026 kept both regimes' slabs unchanged.

How to use the Income Tax Calculator FY 2026-27 (New vs Old Regime)

Enter your total yearly income (salary, interest, rent and other income).
Say whether you are salaried or a pensioner, and your age.
Optionally open the old-regime section and enter 80C, 80D, HRA and home-loan interest.
Compare total tax under each regime and pick the cheaper one.

Worked example

Salary ₹15,00,000, no deductions: new regime taxable income ₹14,25,000, tax ₹93,750 + 4% cess = ₹97,500. Old regime (₹50,000 standard deduction only) = ₹2,57,400.

Formula

New regime: 0–4L nil · 4–8L 5% · 8–12L 10% · 12–16L 15% · 16–20L 20% · 20–24L 25% · above 24L 30%
Rebate: tax nil if taxable income ≤ ₹12,00,000 (marginal relief above)
Old regime (below 60): 0–2.5L nil · 2.5–5L 5% · 5–10L 20% · above 10L 30%
Total tax = (slab tax − rebate + surcharge) × 1.04

Frequently asked questions

Which regime is the default for FY 2026-27?

The new regime is the default. Salaried people can choose the old regime each year; people with business income have limited chances to switch back.

Is income up to ₹12 lakh really tax-free?

Under the new regime, yes: the rebate cancels the tax when taxable income is up to ₹12 lakh. Salaried people also get the ₹75,000 standard deduction, so the tax-free point is ₹12.75 lakh of salary. The rebate does not cover capital gains taxed at special rates.

What is marginal relief?

If your income is just above ₹12 lakh, the tax you pay cannot exceed the income above ₹12 lakh. For example, at ₹12,10,000 taxable income the tax is capped at ₹10,000 plus cess.

Which deductions are allowed in the new regime?

Mainly the standard deduction and your employer's NPS contribution. 80C, 80D, HRA and home-loan interest on a self-occupied house are only available in the old regime.

Did the new Income-tax Act change the slabs?

No. The Income-tax Act, 2025 applies from 1 April 2026, but Budget 2026 kept the slabs and rebate the same as FY 2025-26.

Related tools

Read the guide

New vs old tax regime FY 2026-27: which should you choose?

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