Budget 2026 Income Tax Calculator

Budget 2026 Tax Calculator for Tax Year 2026–27

Use this free Budget 2026 tax calculator to compare the default new tax regime with the old regime for ordinary salary, pension and slab-rate income earned from 1 April 2026 to 31 March 2027. It estimates taxable income, resident-individual rebates, surcharge, 4% cess and potential tax savings.

Budget 2026 Tax Calculator

Compare individual income tax under the new and old regimes for Tax Year 2026–27. Budget 2026 kept the personal slab rates unchanged.

Residential statusResident individualNon-resident individual

Age during the tax yearAge changes the old-regime exemption limit for resident individuals.Below 60 years60 to 79 years80 years or more

Gross salary or pension (₹)Before the standard deduction

Other ordinary slab-rate income (₹)Interest, rent or other income; exclude special-rate income

Old-regime deductions and exemptions (₹)Exclude the ₹50,000 standard deduction already applied

Eligible new-regime deductions (₹)Exclude the ₹75,000 standard deduction already applied

Estimated Better Regime

—

New-regime taxable income₹0

New-regime tax incl. surcharge and cess₹0

Section 156 rebate / marginal relief₹0

Old-regime taxable income₹0

Old-regime tax incl. surcharge and cess₹0

Estimated savings with better regime₹0

New-regime status—

Planning estimate for ordinary slab-rate income only. Final tax is rounded to the nearest ₹10.

Reviewed on July 13, 2026 using the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the official Budget 2026 memorandum.

Union Budget 2026 did not change the individual income-tax rates already enacted for Tax Year 2026–27. The Income-tax Act, 2025 applies from 1 April 2026, Section 202 contains the default new-regime slabs, and taxpayers who qualify may compare them with the old regime before choosing.

Quick answer: Under the new regime, ordinary taxable income up to ₹12 lakh can be tax-free for a resident individual after the Section 156 rebate. A salaried resident can therefore have zero tax on gross salary up to ₹12.75 lakh when only the ₹75,000 standard deduction is used and no special-rate income changes the result.

How to use the Budget 2026 tax calculator

1. Select resident or non-resident status because the individual rebate is available only to residents.
2. Select age; it changes old-regime slabs only for resident senior and super-senior individuals.
3. Enter gross salary or pension before standard deduction.
4. Add interest, rent or other income taxable at ordinary slab rates.
5. Enter old-regime deductions and exemptions, excluding the standard deduction.
6. Enter only deductions specifically allowed under the new regime, again excluding the standard deduction.
7. Compare taxable income, total tax and savings under both regimes.

Budget 2026 positionPersonal slab rates for Tax Year 2026–27 remain unchanged from those already enacted.

Default regimeSection 202 applies by default unless the taxpayer validly exercises the option to use the old regime.

New tax regime slabs for Tax Year 2026–27

Taxable income slab	Rate on that slab
Up to ₹4,00,000	Nil
₹4,00,001 to ₹8,00,000	5%
₹8,00,001 to ₹12,00,000	10%
₹12,00,001 to ₹16,00,000	15%
₹16,00,001 to ₹20,00,000	20%
₹20,00,001 to ₹24,00,000	25%
Above ₹24,00,000	30%

Section 156 rebate and marginal relief

A resident individual using the new regime can receive a rebate equal to the slab tax or ₹60,000, whichever is lower, when total income does not exceed ₹12 lakh. If total income is slightly above ₹12 lakh, marginal relief limits the pre-cess tax to the amount by which total income exceeds ₹12 lakh when the statutory condition is met.

Special-rate income: Capital gains, lottery winnings, virtual digital assets and other specially taxed income can change rebate eligibility or computation. This calculator intentionally accepts only ordinary slab-rate income.

Standard deduction for salary and pension

Section 19 allows a standard deduction of up to ₹75,000 when tax is computed under the default new regime and up to ₹50,000 in other cases. The calculator applies the deduction only against the salary or pension amount entered and never for more than that amount.

Old-regime slabs used in this calculator

Resident individual	Basic exemption	Rates above the exemption
Below 60	₹2,50,000	5% to ₹5 lakh; 20% to ₹10 lakh; 30% above
Age 60 to 79	₹3,00,000	5% to ₹5 lakh; 20% to ₹10 lakh; 30% above
Age 80 or more	₹5,00,000	20% to ₹10 lakh; 30% above

Non-resident individuals do not receive the age-based higher exemption limits in this comparison. The old-regime Section 156 rebate is applied only to resident individuals with total income up to ₹5 lakh.

Budget 2026 tax calculation formula

Taxable income = Salary + ordinary other income − standard deduction − eligible regime deductions

Estimated total tax = Income-tax after rebate + applicable surcharge + 4% cess

The calculator also applies surcharge marginal relief at the relevant ₹50 lakh, ₹1 crore, ₹2 crore and, for the old regime, ₹5 crore boundaries. Special-rate income can alter the surcharge calculation and is outside this simplified comparison.

Budget 2026 comparison example

Assume a resident individual below age 60 has gross salary of ₹12,75,000, no other income, ₹2,00,000 of old-regime deductions and no additional new-regime deduction.

• New-regime taxable income: ₹12,00,000 after the ₹75,000 standard deduction.
• New-regime tax: nil after the resident-individual rebate.
• Old-regime taxable income: ₹10,25,000 after the ₹50,000 standard deduction and ₹2,00,000 deductions.
• Old-regime estimated tax: ₹1,24,800 including 4% cess.

In this example the new regime saves about ₹1,24,800. A higher amount of valid old-regime deductions or a different income mix can change the comparison.

What this calculator does not cover

• Capital gains, lottery income, virtual digital assets or any other special-rate income.
• Agricultural-income rate integration, foreign tax relief, AMT or business-loss adjustments.
• Exact eligibility limits and conditions for HRA, Chapter VIII deductions or employer contributions.
• TDS, advance tax, interest, late fees or final return filing.

Related tax tools

Income Tax Calculator Old vs New Tax Regime Section 87A Rebate Calculator Advance Tax Calculator Salary Take-Home Calculator HRA Calculator

Frequently asked questions

Did Budget 2026 change the new-regime tax slabs?

No. The official Budget 2026 memorandum states that the rates already enacted for Tax Year 2026–27 remain unchanged.

What are the new tax regime slabs for Tax Year 2026–27?

The rates are nil up to ₹4 lakh, then 5%, 10%, 15%, 20%, 25% and 30% across successive ₹4 lakh bands, with 30% applying above ₹24 lakh.

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

Ordinary slab-rate income up to ₹12 lakh can have zero tax under the new regime for an eligible resident individual after the Section 156 rebate. The rebate is not the same as a ₹12 lakh basic exemption.

Why is ₹12.75 lakh salary often called tax-free?

A salaried resident with gross salary of ₹12.75 lakh may reach taxable income of ₹12 lakh after the ₹75,000 standard deduction. Other income or special-rate income can change the outcome.

Can a non-resident claim the ₹60,000 new-regime rebate?

No. Section 156 limits the individual rebate to a resident individual. The calculator therefore removes it when non-resident status is selected.

What is marginal relief above ₹12 lakh?

When eligible total income is slightly above ₹12 lakh, marginal relief prevents pre-cess tax from exceeding the income above ₹12 lakh, subject to Section 156 conditions.

What standard deduction is available in Tax Year 2026–27?

For salary or pension, the maximum is ₹75,000 under Section 202(1) and ₹50,000 in other cases, limited to the salary amount.

Does age change new-regime slabs?

No. The new-regime slabs are the same across age groups. Age-based basic exemptions are relevant to the old regime for resident individuals.

Does this calculator include surcharge and cess?

Yes. It estimates surcharge on ordinary slab-rate income, applies surcharge marginal relief at the major thresholds, adds 4% cess and rounds the final estimate to the nearest ₹10.

Which regime should I choose after Budget 2026?

Choose only after comparing valid deductions, exemptions, income composition and regime-switching rules. The calculator provides a planning estimate, not a filing recommendation.

Official sources

• Government of India – Memorandum explaining Finance Bill, 2026
• CBDT – Income-tax Act, 2025 as amended by Finance Act, 2026
• Income Tax Department – Section 202 new tax regime and slabs
• Income Tax Department – Section 156 resident-individual rebate
• Income Tax Department – Section 19 salary deductions
• Income Tax Department – Tax Year 2026–27 rates, surcharge and cess
• Income Tax Department – Official income tax calculator

Disclaimer: This page provides an educational estimate, not tax, legal or filing advice. Actual tax depends on income classification, deduction eligibility, residency, regime-option rules, surcharge treatment, reliefs and the law applicable to your facts. Verify the result on the official portal or consult a qualified tax professional.