Income tax calculator

Compare your tax under the old and new regime for FY 2026-27 (tax year 2026-27), see how each slab adds up, and find out exactly when the old regime is worth it.

Last reviewed

Your income

Annual figures for FY 2026-27 (tax year 2026-27).

Your age
₹
₹0₹1 Cr
Other incomeInterest, rent, freelance (taxed at slab rates)₹
Employer's NPS contributionAllowed in both regimes₹
Deductions (old regime only)The new regime ignores these. Limits are applied automatically.
  • 80C investmentsEPF, PPF, ELSS, life insurance, home loan principal, tuition fees · up to ₹1.5 L₹
  • Health insurance (80D)Premiums for self, family and parents · up to ₹1 L₹
  • HRA exemptionWork it out with the HRA calculator₹
  • Home loan interestSelf-occupied house · up to ₹2 L₹
  • Own NPS contributionOver and above 80C (80CCD(1B)) · up to ₹50K₹
  • Professional taxDeducted by your employer · up to ₹2.5K₹
  • Other deductionsEducation loan interest, donations, etc.₹

Old vs new regime

Your tax under both regimes, including cess and any surcharge.

New regimeLower tax₹97,500₹8,125 a month · 6.5% effective rate
Old regime₹2,02,020₹16,835 a month · 13.5% effective rate
The new regime saves you ₹1,04,520 a year.That is ₹8,710 a month more in hand. Take-home after tax: ₹14,02,500 a year.
  • The old regime only wins if your deductions reach about ₹5,44,500, ₹3,67,000 more than you have now.
  • Your top slab is 15% in the new regime, so each extra ₹1,000 of income costs about ₹156 in tax.

Tax computation

Line by line, as your employer or the ITR would work it out.

ItemNew regimeOld regime
Gross income₹15,00,000₹15,00,000
Standard deduction− ₹75,000− ₹50,000
Professional tax—− ₹2,500
80C investments—− ₹1,50,000
Health insurance (80D)—− ₹25,000
Taxable income₹14,25,000₹12,72,500
Tax at slab rates₹93,750₹1,94,250
Rebate (Section 156, earlier 87A)——
Marginal relief——
Surcharge₹0₹0
Health & education cess (4%)₹3,750₹7,770
Total tax₹97,500₹2,02,020

How your income falls into the slabs

Each slab's rate applies only to the income inside it.

  • ₹0 – ₹4 L0%₹4,00,000 taxed₹0
  • ₹4 L – ₹8 L5%₹4,00,000 taxed₹20,000
  • ₹8 L – ₹12 L10%₹4,00,000 taxed₹40,000
  • ₹12 L – ₹16 L15%₹2,25,000 taxed₹33,750
  • ₹16 L – ₹20 L20%₹0 taxed₹0
  • ₹20 L – ₹24 L25%₹0 taxed₹0
  • Above ₹24 L30%₹0 taxed₹0

About this calculator

How to calculate your income tax

  1. Choose your age group and enter your gross annual salary.
  2. Add any other income taxed at slab rates, such as interest or rent.
  3. Enter your old-regime deductions: 80C, health insurance, HRA, home loan interest and NPS.
  4. Compare the tax under both regimes and see which one saves more.
  5. Check the line-by-line computation and how your income falls into each slab.

New tax regime slabs for FY 2026-27

The new regime is the default. Budget 2026 kept the slabs unchanged. Salaried taxpayers get a standard deduction of ₹75,000, and a rebate makes taxable income up to ₹12 lakh tax-free.

Taxable incomeRate
₹0 – ₹4 LNil
₹4 L – ₹8 L5%
₹8 L – ₹12 L10%
₹12 L – ₹16 L15%
₹16 L – ₹20 L20%
₹20 L – ₹24 L25%
Above ₹24 L30%

Old tax regime slabs

The old regime has higher rates but lets you claim deductions such as 80C, 80D, HRA and home loan interest. The standard deduction is ₹50,000 and the rebate covers taxable income up to ₹5 lakh.

Taxable incomeBelow 6060 to 7980 and above
₹0 – ₹2.5 LNilNilNil
₹2.5 L – ₹3 L5%NilNil
₹3 L – ₹5 L5%5%Nil
₹5 L – ₹10 L20%20%20%
Above ₹10 L30%30%30%

Worked example: ₹18 lakh salary, new regime

  • Gross salary: ₹18,00,000
  • Less standard deduction: ₹75,000
  • Taxable income: ₹17,25,000
  • ₹0 – ₹4 L at 0%: ₹0
  • ₹4 L – ₹8 L at 5%: ₹20,000
  • ₹8 L – ₹12 L at 10%: ₹40,000
  • ₹12 L – ₹16 L at 15%: ₹60,000
  • ₹16 L – ₹20 L at 20%: ₹25,000
  • Cess at 4%: ₹5,800
  • Total tax: ₹1,50,800 (₹12,567 a month)

Old vs new regime at common salaries

Assuming full 80C (₹1.5 lakh), ₹25,000 health insurance and ₹2,500 professional tax in the old regime, and no other income:

SalaryNew regime taxOld regime taxCheaper
₹8 L₹0₹28,080New
₹12.75 L₹0₹1,31,820New
₹15 L₹97,500₹2,02,020New
₹20 L₹1,92,400₹3,58,020New
₹30 L₹4,75,800₹6,70,020New
₹50 L₹10,99,800₹12,94,020New

Add HRA or home loan interest and the old regime can win at higher incomes. Enter your own figures above to check.

Income tax by salary

Surcharge and cess

Taxable incomeOld regimeNew regime
₹50 lakh – ₹1 Cr10%10%
₹1 Cr – ₹2 Cr15%15%
₹2 Cr – ₹5 Cr25%25%
Above ₹5 Cr37%25%

Surcharge is charged on the income tax, with marginal relief just above each threshold. A 4% health and education cess applies on top of tax plus surcharge.

Related tools

Find your take-home pay with the salary calculator, work out your HRA exemption for the old regime, or plan a loan with the EMI calculator.

Frequently asked questions

What are the income tax slabs for FY 2026-27?

Under the new regime: nil up to ₹4 lakh, 5% for ₹4–8 lakh, 10% for ₹8–12 lakh, 15% for ₹12–16 lakh, 20% for ₹16–20 lakh, 25% for ₹20–24 lakh and 30% above ₹24 lakh. Budget 2026 did not change these slabs. The old regime keeps its slabs of nil up to ₹2.5 lakh, 5% up to ₹5 lakh, 20% up to ₹10 lakh and 30% above.

Is income up to ₹12 lakh tax-free in the new regime?

Yes, for resident individuals. A rebate of up to ₹60,000 wipes out the tax when taxable income is ₹12 lakh or less. Salaried people also get a ₹75,000 standard deduction, so a salary of up to ₹12.75 lakh pays no tax. The rebate does not cover special-rate income such as capital gains.

What happens if my income is just above ₹12 lakh?

Marginal relief applies: the tax you pay cannot be more than the amount by which your taxable income exceeds ₹12 lakh. So at ₹12.1 lakh you pay at most ₹10,000 plus cess, not the full slab tax of ₹61,500.

Which is better, the old or the new tax regime?

For most people the new regime is cheaper because of its lower rates and the ₹12 lakh rebate. The old regime wins only if you claim large deductions, such as full 80C, health insurance, HRA and home loan interest. The calculator shows the exact deductions you would need for the old regime to come out ahead.

Which deductions are allowed in the new regime?

The new regime allows the ₹75,000 standard deduction for salaried people, the employer's contribution to NPS and a few others, but not 80C, 80D, HRA, home loan interest on a self-occupied house or professional tax.

Is the new regime the default?

Yes. The new regime applies unless you choose the old one. Salaried employees can pick a regime each year; people with business income have limited chances to switch back and forth.

What is the Income-tax Act, 2025?

It replaces the Income-tax Act, 1961 from 1 April 2026. It uses a single 'tax year' in place of the previous year and assessment year, and renumbers sections (the 87A rebate is now Section 156). The tax rates for 2026-27 are the same as in 2025-26.

How are surcharge and cess calculated?

A surcharge of 10% applies above ₹50 lakh, 15% above ₹1 crore and 25% above ₹2 crore. Above ₹5 crore it is 37% in the old regime but capped at 25% in the new regime. A 4% health and education cess is then added to tax plus surcharge.

Related calculators

Keep planning with these tools.

Add this calculator to your website

Free for blogs and businesses. Paste this code into your page. More options

<iframe src="https://blogbanking.com/embed/income-tax-calculator" title="Income tax calculator" loading="lazy" style="width:100%;height:900px;border:0;" data-blogbanking="income-tax-calculator"></iframe>
<p style="font-size:13px;margin:4px 0 0;">Income tax calculator by <a href="https://blogbanking.com/income-tax-calculator">BlogBanking</a></p>
<script>addEventListener("message",function(e){if(e.origin!=="https://blogbanking.com"||!e.data||e.data.type!=="blogbanking:height")return;document.querySelectorAll('iframe[data-blogbanking="'+e.data.tool+'"]').forEach(function(f){f.style.height=e.data.height+"px";});});</script>
Results are estimates for illustration, not tax or financial advice.