Income Tax Calculator FY 2026-27: New vs Old Regime

#How this calculator works

It runs your numbers through both tax regimes and tells you which one leaves you with more money. You only need three things: your total yearly income, whether you are salaried or a pensioner (for the standard deduction), and your age (the old regime has higher exemption limits for seniors). If you are weighing the old regime, open the Deductions box and add what you can claim.

Key takeaways

• Budget 2026 did not change the slabs, so FY 2026-27 uses the same rates as FY 2025-26.
• Under the new regime, taxable income up to ₹12 lakh pays zero tax thanks to the ₹60,000 rebate. With the ₹75,000 standard deduction, a salary up to ₹12.75 lakh is tax-free.
• The old regime only wins if your deductions are very large — roughly ₹5.5–8 lakh on top of the standard deduction for incomes between ₹13 and ₹25 lakh.

Good to know: From 1 April 2026 the Income-tax Act, 2025 replaced the 1961 Act. The rates did not change, but section numbers did. This page uses the familiar old names (80C, 80D, 87A) because that is what most payslips and investment proofs still say.

#New regime slabs for FY 2026-27

The new regime is the default. Salaried people get a ₹75,000 standard deduction, and your employer's NPS contribution under Section 80CCD(2) is still allowed. Most other deductions — 80C, 80D, HRA, home-loan interest on a self-occupied house — are not.

Marginal relief: if your taxable income is just over ₹12 lakh, you never pay more tax than the amount by which you crossed ₹12 lakh. Earn ₹12,10,000 and your tax before cess is capped at ₹10,000. The calculator applies this automatically.

#Old regime slabs for FY 2026-27

The standard deduction here is ₹50,000, and the Section 87A rebate is ₹12,500 for taxable income up to ₹5 lakh — with no marginal relief.

#Surcharge and cess

A 4% health and education cess is added to your tax in both regimes. High earners also pay a surcharge on the tax: 10% above ₹50 lakh, 15% above ₹1 crore and 25% above ₹2 crore. The old regime has a further 37% band above ₹5 crore; the new regime caps it at 25%. This calculator does not apply marginal relief on surcharge, so results for incomes just above those thresholds may be slightly high.

Example: A salaried employee earning ₹15 lakh with no deductions pays about ₹97,500 under the new regime (₹93,750 on slabs + 4% cess). Under the old regime, even with full 80C (₹1.5 lakh) and ₹25,000 of 80D, tax is around ₹2.03 lakh. The new regime saves roughly ₹1.05 lakh.

#Which regime should you choose?

Salaried taxpayers can pick a regime every year when filing their return. People with business or professional income can switch out of the new regime only once in their lifetime (and back once), so think before you move.

Pick the old regime if you have a home loan on a house you live in, pay high rent with HRA, and fill your 80C and 80D limits — and your total deductions are high enough that the calculator shows a saving. Otherwise the new regime is usually cheaper and much simpler. You can compare the two in detail in our guide to the new vs old tax regime, then file your ITR online.

#Frequently asked questions

Is income up to ₹12 lakh tax-free in FY 2026-27?

Yes, under the new regime. Tax on ₹12 lakh of taxable income is ₹60,000, and the Section 87A rebate cancels all of it. Salaried people also get a ₹75,000 standard deduction, so a salary of up to ₹12.75 lakh is tax-free. The rebate does not apply to special-rate income such as capital gains.

Did Budget 2026 change the income tax slabs?

No. The Union Budget presented on 1 February 2026 left the slabs, the ₹75,000 standard deduction and the ₹60,000 rebate unchanged for FY 2026-27.

Can I claim 80C under the new regime?

No. Section 80C, 80D, HRA and home-loan interest on a self-occupied property are only allowed in the old regime. The employer's NPS contribution under 80CCD(2) is allowed in both.

Does this calculator include capital gains?

No. Gains on shares and mutual funds are taxed at special rates and are added separately. Enter only your slab-rate income here.

#Sources

• Income Tax Department — tax calculator and slab rates
• Union Budget 2026-27 documents
• Income Tax Department — e-filing portal