Income Tax Calculator FY 2026-27 - New vs Old

Income Tax Calculator FY 2026-27

Compare India's new and old tax regimes with age-based slabs, standard deduction, eligible deductions, Section 87A rebate, marginal relief, surcharge, cess and tax credits.

Last Updated: July 22, 2026

Use this income tax calculator for Tax Year 2026-27 to estimate tax on salary, pension, rental, business and other ordinary income. It calculates both regimes together, separates special-rate tax, and shows your estimated balance payable or refund after TDS and advance tax.

Calculate Income Tax Under Both Regimes

Enter annual figures. The default example uses ₹12.75 lakh salary, where the new-regime ₹75,000 standard deduction reduces taxable income to ₹12 lakh.

Taxpayer profile
Section 87A rebate is available only to eligible resident individuals.
Age changes old-regime slabs for resident individuals only.
Annual income
Enter taxable rental income after the applicable property computation.
Capital gains, lottery or other income taxed outside normal slabs.
Calculate this amount separately. It is not eligible for the new-regime rebate.
Deductions and exemptions
Applied in both regime estimates. Verify the percentage-of-salary limit.
Calculator caps this field at ₹1,50,000.
For a qualifying self-occupied property, this tool caps the input at ₹2,00,000.
Enter verified deductions not listed above. Limits vary by section.
Tax already paid
Lower estimated tax₹0
New-regime tax₹0
Old-regime tax₹0
Lower-tax regime-
Estimated tax saved₹0
New taxable income₹0
Old taxable income₹0
Tax paid or credited₹0
Balance or refund, lower regime₹0
Average monthly tax₹0
Effective tax rate0%
Extra old deductions to match₹0
Advance-tax threshold-

Tax comparison

New regime
₹0
Old regime
₹0

Enter your annual figures to compare both regimes.

Tax computation

ComponentNew regimeOld regime

Advance-tax planning for the lower-tax result

Due dateCumulative shareCumulative amountRemaining after advance tax entered

Tax sensitivity when ordinary income changes

Ordinary income scenarioNew-regime taxOld-regime taxLower regime

Special-rate income needs a separate rate calculation. Enter its pre-surcharge tax only when you know the applicable treatment.

How to Use the Income Tax Calculator

  1. Select whether you are a resident or non-resident individual. Choose your age group for the old-regime comparison.
  2. Enter gross salary or pension and any taxable rental, business, professional, interest or other ordinary income.
  3. If you have capital gains, lottery winnings or another special-rate item, enter the income and its separately calculated tax before surcharge.
  4. Add employer NPS and the exemptions or deductions you are eligible to claim under the old regime.
  5. Enter TDS, TCS, advance tax and self-assessment tax already paid.
  6. Review both regime results, the computation table, balance or refund estimate and advance-tax schedule.

Do not enter the same deduction twice. Use annual values from salary statements, Form 16, AIS, TIS, bank certificates and investment proofs. The result is a planning estimate, not an income-tax return.

What This FY 2026-27 Tax Calculator Includes

This calculator covers the main components needed for an individual estimate under the new and old regimes:

  • Progressive slab tax for Tax Year 2026-27
  • ₹75,000 new-regime and ₹50,000 old-regime standard deduction for eligible salary or pension income
  • Age-based old-regime basic exemption for eligible resident senior citizens
  • Section 87A rebate for eligible resident individuals
  • New-regime marginal relief for total income just above ₹12 lakh
  • Surcharge at high-income thresholds and estimated surcharge marginal relief for ordinary income
  • 4% Health and Education Cess and total-tax rounding
  • Tax already paid through TDS, TCS, advance tax or self-assessment tax
  • Advance-tax instalment planning when the net liability after TDS exceeds ₹10,000

The calculator evaluates both regimes independently. It does not assume the new regime is always better. Your result changes with HRA, Section 80C, health-insurance deductions, home-loan interest, employer NPS, age, residential status and the mix of ordinary and special-rate income.

New Tax Regime Slabs for Tax Year 2026-27

Taxable incomeRate
Up to ₹4,00,000Nil
₹4,00,001 to ₹8,00,0005%
₹8,00,001 to ₹12,00,00010%
₹12,00,001 to ₹16,00,00015%
₹16,00,001 to ₹20,00,00020%
₹20,00,001 to ₹24,00,00025%
Above ₹24,00,00030%

These rates apply progressively. A person with taxable income of ₹15 lakh does not pay 15% on the full amount. The first ₹4 lakh is nil, the next ₹4 lakh is taxed at 5%, the next ₹4 lakh at 10%, and only the portion from ₹12 lakh to ₹15 lakh is taxed at 15%.

The new regime is the default regime. It allows fewer common deductions than the old regime. This tool automatically applies the salary standard deduction and the employer-NPS input. It does not assume deductions that you did not enter.

Old Tax Regime Slabs

Age and residential statusBasic exemptionNext slabs
Resident below 60, or NRI of any age₹2,50,0005% to ₹5 lakh, 20% to ₹10 lakh, then 30%
Resident age 60 to 79₹3,00,0005% to ₹5 lakh, 20% to ₹10 lakh, then 30%
Resident age 80 or older₹5,00,00020% to ₹10 lakh, then 30%

The old regime retains familiar deductions and exemptions. The standard deduction is ₹50,000 for eligible salary or pension income. Section 80C has a combined limit of ₹1,50,000. The additional NPS deduction under Section 80CCD(1B) is commonly capped at ₹50,000. Other sections use their own eligibility tests and limits.

Age-based higher exemption limits under the old regime are for eligible resident individuals. A non-resident does not receive the senior-citizen basic exemption merely because of age. This distinction is built into the calculator.

Formula and Calculation Method

Total tax = slab tax + special-rate tax - eligible rebate - eligible marginal relief + surcharge + 4% cess

The calculator first totals ordinary income. It then subtracts the deductions allowed in each regime. Special-rate income remains separate, but it is included in total income for threshold checks. Slab tax is computed progressively. Rebate and marginal relief are then applied where the simplified eligibility checks are met.

Surcharge applies when total income crosses ₹50 lakh, ₹1 crore, ₹2 crore or, under the old regime, ₹5 crore. The standard surcharge rate reaches 25% in the new regime and 37% in the old regime. Certain capital gains and dividend income have a lower surcharge cap. The special-tax input therefore uses a 15% surcharge cap, while the tool labels high-income mixed cases as estimates.

Health and Education Cess is 4% of income tax plus surcharge. The final amount is rounded to the nearest ₹10 for a practical estimate.

Worked Example: ₹12.75 Lakh Salary

Consider a resident salaried individual below age 60 with gross salary of ₹12,75,000 and no special-rate income.

New-regime calculation

  • Gross salary: ₹12,75,000
  • Standard deduction: ₹75,000
  • Taxable income: ₹12,00,000
  • Slab tax before rebate: ₹60,000
  • Section 87A rebate: ₹60,000
  • Tax after rebate and cess: ₹0

In the default old-regime example, Section 80C is ₹1,50,000 and other deductions are ₹25,000. Old-regime tax remains payable because taxable income stays above the ₹5 lakh rebate ceiling. Change every prefilled field to your actual eligible amount.

The ₹12.75 lakh zero-tax statement applies to eligible salary income under the new regime after the ₹75,000 standard deduction. It is not a universal exemption. Special-rate income and residential-status rules can change the result.

Section 87A Rebate and Marginal Relief

An eligible resident individual under the new regime can receive a rebate of up to ₹60,000 when total income does not exceed ₹12 lakh. An eligible salaried taxpayer may reach this taxable-income limit after the ₹75,000 standard deduction.

When new-regime total income moves slightly above ₹12 lakh, marginal relief prevents slab tax from exceeding the income above ₹12 lakh. At ₹12,10,000 of eligible ordinary taxable income, slab tax is ₹61,500 before relief. Marginal relief reduces it to ₹10,000 before cess. The relief stops when normal slab tax is no longer higher than the excess. Based on the official illustration, this point is around ₹12,70,588.

The old-regime rebate is up to ₹12,500 when an eligible resident individual's total income does not exceed ₹5 lakh. NRIs are not eligible for Section 87A rebate. Under the new law, tax on special-rate income such as capital gains or lotteries does not receive the new-regime rebate. This tool keeps special tax outside the rebate calculation.

New Versus Old Tax Regime

The lower slab rates and larger rebate often favour the new regime when deductions are limited. The old regime may become competitive when you have a large HRA exemption, home-loan interest, Section 80C investments, medical-insurance deductions, additional NPS contributions or other valid claims.

The “Extra old deductions to match” result estimates how much more deduction the old regime would need before its tax equals the new-regime result. It uses a numerical comparison and is a planning signal. It does not prove eligibility for any deduction.

  • Choose the new regime based on actual tax, not only its lower headline rates.
  • Choose the old regime only when you qualify for the deductions entered and retain evidence.
  • Business or professional taxpayers should review regime-switching rules before opting out.
  • Do not count investments made only for tax if they conflict with your liquidity, risk or financial goals.

Advance Tax, TDS and Refund Estimate

When estimated tax after TDS exceeds ₹10,000, advance tax generally becomes relevant. The standard cumulative schedule is 15% by 15 June, 45% by 15 September, 75% by 15 December and 100% by 15 March. The table uses the lower-regime tax and deducts TDS before calculating these cumulative amounts.

Salaried taxpayers often meet most liability through employer TDS. Interest, rent, capital gains or freelance income may create an extra liability. Enter tax credits from reliable records. A negative balance is displayed as an estimated refund, but an actual refund depends on return processing, credit matching, interest, prior demands and adjustments.

Presumptive business taxpayers may follow a different advance-tax timing rule. Interest under the tax law for shortfall or delay is outside this calculator.

Important Limitations

This calculator handles a broad individual estimate, but an income-tax return contains rules that do not fit into one short form. Get a detailed computation when you have:

  • Multiple capital-gain categories, indexation choices or loss set-off
  • Agricultural-income integration with non-agricultural income
  • Foreign income, foreign tax credit, treaty relief or residential-status complexity
  • More than one house property, brought-forward property loss or deemed rent
  • Business losses, depreciation, presumptive taxation, AMT or audit requirements
  • Clubbing of income, minor-child income or unexplained income
  • Arrears relief, perquisites, ESOPs, gratuity, leave encashment or pension commutation
  • Donation limits, disability deductions or section-specific conditions
  • High income with special-rate gains requiring exact surcharge allocation

The employer-NPS field does not test the applicable percentage-of-salary cap. The other-old-deductions field does not enforce separate limits for Section 80D, 80E, 80G or other sections. Rental income should already reflect the correct property computation.

Related Tax and Salary Calculators

Use these tools for components that need a dedicated calculation.

Frequently Asked Questions

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

Yes. It uses the Tax Year 2026-27 individual slab rates, rebate limits, standard deductions, surcharge thresholds and 4% cess available on July 22, 2026.

Is ₹12 lakh income completely tax-free?

An eligible resident individual under the new regime can receive a rebate of up to ₹60,000 when total income does not exceed ₹12 lakh. Tax on special-rate income does not receive this rebate.

Why is tax zero on ₹12.75 lakh salary?

The new-regime ₹75,000 standard deduction can reduce ₹12,75,000 of eligible gross salary to ₹12 lakh total income. The Section 87A rebate can then reduce ordinary slab tax to zero.

Does marginal relief apply above ₹12 lakh?

Eligible resident individuals in the new regime receive marginal relief when ordinary taxable income is slightly above ₹12 lakh. It limits slab tax before cess to the income exceeding ₹12 lakh until normal tax becomes lower.

Does age change new-regime tax slabs?

No. New-regime slabs are the same across age groups. Age changes the old-regime basic exemption for eligible resident senior and super-senior individuals.

Can an NRI claim Section 87A rebate?

No. Section 87A rebate is for eligible resident individuals. The calculator excludes the rebate when non-resident status is selected.

Does the result include surcharge and cess?

Yes. It estimates surcharge, threshold marginal relief for ordinary income, and 4% Health and Education Cess. Mixed high-income cases with special-rate tax need detailed review.

How does the calculator treat capital gains?

Enter capital gains as special-rate income and separately enter their tax before surcharge. The tool keeps this tax outside the new-regime rebate and caps its estimated surcharge at 15%.

Can I file my return using this result?

Use the result for planning and regime comparison. Verify final income, deductions, tax credits and schedules through the official filing utility or a qualified tax professional.

Official References

Disclaimer: This calculator provides an educational estimate. It is not tax, legal, accounting or investment advice. Tax depends on facts, documentation, elections, income classification and law in force. Verify your final computation before payment or filing.

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