Income Tax Calculator FY 2026-27 (AY 2027-28)
Compare the new and old tax regimes side by side with the latest Budget 2026 slabs. Includes the ₹75,000 standard deduction, Section 87A rebate of ₹60,000, surcharge with marginal relief, and 4% cess.
₹15.00 Lakh
Salaried / Pensioner
Enables the standard deduction
₹1.50 Lakh — ignored by the new regime
Allowed in BOTH regimes
New regime is better for you
₹97.50 K
You save ₹1.13 Lakh versus the old regime
Taxable Income
₹14.25 Lakh
Effective Rate
6.50%
Monthly Take-home
₹1.17 Lakh
New Regime
Better₹97.50 K
- Std deduction
- ₹75,000
- Taxable
- ₹14,25,000
- Slab tax
- ₹93,750
- Cess (4%)
- ₹3,750
Old Regime
₹2.11 Lakh
- Std deduction
- ₹50,000
- Taxable
- ₹13,00,000
- Slab tax
- ₹2,02,500
- Cess (4%)
- ₹8,100
Slab-wise tax breakup — new regime
| Income slab | Rate | Tax |
|---|---|---|
| ₹0 – ₹4,00,000 | 0% | ₹0 |
| ₹4,00,000 – ₹8,00,000 | 5% | ₹20,000 |
| ₹8,00,000 – ₹12,00,000 | 10% | ₹40,000 |
| ₹12,00,000 – ₹14,25,000 | 15% | ₹33,750 |
Estimates for resident individuals for FY 2026-27 (AY 2027-28). Capital gains, foreign income and business presumptive schemes are not covered. Verify with a CA before filing.
Income tax slabs FY 2026-27 (AY 2027-28)
The Union Budget 2026 made no changes to income tax rates, so the slabs introduced in Budget 2025 continue. The new regime is the default — if you want the old regime you must explicitly opt for it.
New regime slabs
- 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%
Old regime slabs
- Up to ₹2,50,000 — Nil (₹3 lakh if aged 60-80, ₹5 lakh if 80+)
- ₹2,50,001 to ₹5,00,000 — 5%
- ₹5,00,001 to ₹10,00,000 — 20%
- Above ₹10,00,000 — 30%
Why ₹12.75 lakh salary means zero tax
Two things stack up. First, a salaried person deducts the ₹75,000 standard deduction, bringing ₹12.75 lakh gross down to ₹12 lakh taxable. Second, tax on ₹12 lakh is exactly ₹60,000, and the Section 87A rebate of up to ₹60,000 cancels it entirely. Earn even ₹1 more taxable and the rebate disappears completely.
Which regime should you choose?
There is a simple break-even test. The new regime gives you wider slabs and a bigger standard deduction but almost no other deductions. The old regime charges more but lets you claim 80C, 80D, HRA and home loan interest.
As a rule of thumb, the old regime only wins once your total deductions cross roughly ₹3.5 to ₹4 lakh. If you rent in a metro with a large HRA claim and also pay a home loan, run both numbers above — the calculator does the comparison for you.
Deductions still allowed in the new regime
- Standard deduction of ₹75,000 for salary and pension income
- Section 80CCD(2) — employer NPS contribution up to 14% of basic salary
- Section 80JJAA — additional employee cost for businesses
- Section 80CCH — Agniveer Corpus Fund deposits
- Interest on a home loan for a let-out property under Section 24
Notably not allowed: 80C investments (PPF, ELSS, life insurance), 80D health insurance, HRA exemption, and Section 24(b) interest on a self-occupied home.
Surcharge and cess
Above ₹50 lakh a surcharge applies on top of the tax: 10% (₹50L-1cr), 15% (₹1-2cr), 25% (₹2-5cr) and 25% above ₹5cr in the new regime — the old regime goes up to 37%. Marginal relief ensures the extra tax never exceeds the extra income when you cross a threshold. A 4% Health and Education Cess is then charged on tax plus surcharge.
Frequently Asked Questions
Is income up to ₹12 lakh really tax-free in FY 2026-27?
Yes, for resident individuals under the new regime. Tax on ₹12 lakh of taxable income works out to ₹60,000, and the Section 87A rebate of up to ₹60,000 wipes it out completely. For a salaried person the ₹75,000 standard deduction pushes the tax-free salary up to ₹12.75 lakh.
What are the new regime income tax slabs for FY 2026-27?
Up to ₹4 lakh nil, ₹4-8 lakh 5%, ₹8-12 lakh 10%, ₹12-16 lakh 15%, ₹16-20 lakh 20%, ₹20-24 lakh 25%, and 30% above ₹24 lakh. Budget 2026 made no changes, so these carry over from Budget 2025.
Which regime is better — old or new?
The new regime wins for most salaried people because the slabs are wider and the standard deduction is ₹75,000. The old regime only pulls ahead once your total deductions (80C, 80D, HRA, home loan interest) exceed roughly ₹3.5-4 lakh. This calculator computes both and tells you the exact difference.
What is the standard deduction for FY 2026-27?
₹75,000 under the new regime and ₹50,000 under the old regime. It is available to salaried individuals and pensioners only, not to business or professional income.
Do senior citizens get a higher exemption in the new regime?
No. The new regime applies the same ₹4 lakh basic exemption to everyone regardless of age. The higher exemptions of ₹3 lakh (age 60-80) and ₹5 lakh (age 80+) exist only under the old regime.
Which deductions still work in the new regime?
Very few. The main one is Section 80CCD(2) — your employer's NPS contribution, deductible up to 14% of basic salary. Standard deduction of ₹75,000 also applies. 80C, 80D, HRA and home loan interest on a self-occupied property are all disallowed.
How is the 4% cess calculated?
Health and Education Cess is 4% charged on the tax amount after the Section 87A rebate and after any surcharge. It is not charged on your income directly, and it is not reduced by the rebate.
What is marginal relief on surcharge?
Surcharge kicks in at ₹50 lakh income. Without relief, earning ₹1 above the threshold would add far more than ₹1 of tax. Marginal relief caps the extra tax so it never exceeds the extra income. This calculator applies it automatically.
Related free calculators
EMI Calculator
Home loan interest is deductible under the old regime.
PPF Calculator
PPF is a Section 80C investment with tax-free returns.
SIP Calculator
ELSS funds qualify for 80C with a 3-year lock-in.
FD Calculator
FD interest is fully taxable at your slab rate.
Goal SIP Planner
Invest your tax saving towards a real goal.
SWP Calculator
A tax-efficient way to draw retirement income.