Income tax calculator for FY 2026-27 (AY 2027-28)
This income tax calculator works out the tax a resident individual in India pays for FY 2026-27 (assessment year 2027-28, also called tax year 2026-27 under the new Act). It calculates tax under the new regime and the old regime side by side, applies the standard deduction, the Section 87A rebate, marginal relief, surcharge and the 4% health and education cess, and then tells you which regime saves more. The rules on this page are current as of September 2026.
It works as an income tax calculator for salary, for pensioners and for people with other income such as interest or freelance profit. Use it before you tell your employer your regime choice in April, or before you file your return.
What changed from April 2026?
The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026. The new Act rewrites and renumbers the law in simpler language and uses the term "tax year" instead of "previous year" and "assessment year". Budget 2026 did not change the slab rates, the ₹75,000 standard deduction or the ₹12 lakh rebate limit, so the slabs announced in Budget 2025 continue for FY 2026-27. Both the new and old regimes remain available; the new regime is the default.
New regime income tax slabs FY 2026-27
| Taxable income | Tax rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Under the new regime, salaried people and pensioners get a standard deduction of ₹75,000. A resident with taxable income up to ₹12,00,000 gets a rebate of up to ₹60,000, so the tax is nil. With the standard deduction, a salary of up to ₹12.75 lakh pays zero tax. Just above ₹12 lakh, marginal relief ensures that the tax never exceeds the income above ₹12 lakh. The new regime does not allow most deductions such as 80C, 80D, HRA or home loan interest on a self-occupied house, but it does allow the employer's NPS contribution (up to 14% of basic + DA), and the slabs are the same for all ages.
Old regime income tax slabs FY 2026-27
| Taxable income | Below 60 | 60–79 (senior) | 80+ (super senior) |
|---|---|---|---|
| Up to ₹2,50,000 | Nil | Nil | Nil |
| ₹2,50,001 – ₹3,00,000 | 5% | Nil | Nil |
| ₹3,00,001 – ₹5,00,000 | 5% | 5% | Nil |
| ₹5,00,001 – ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
The old regime gives a standard deduction of ₹50,000 and a rebate of up to ₹12,500 when taxable income is ₹5 lakh or less. Its value comes from deductions: Section 80C (₹1.5 lakh), 80D health insurance, 80CCD(1B) NPS (₹50,000), HRA exemption, home loan interest (₹2 lakh) and others.
Surcharge and cess
- Surcharge on tax: 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore. Above ₹5 crore it is 37% under the old regime but capped at 25% under the new regime. Marginal relief applies at each threshold, and the calculator includes it.
- Health and education cess: 4% on tax plus surcharge, for everyone who pays tax.
How to use this income tax calculator
- Pick your age group. It only changes the old regime exemption limit.
- Enter your yearly gross salary (or pension) and any other income such as FD interest.
- If your employer puts money into your NPS account, enter it with your basic + DA.
- Fill in your old regime deductions: 80C, 80D, HRA exemption, home loan interest, 80CCD(1B) and others. Leave them at zero if you have none.
- Read the verdict at the top and the old vs new regime table, which shows every step of the calculation.
How to calculate income tax on salary with example
Take a salary of ₹15,00,000 with ₹1,50,000 in 80C investments and a ₹25,000 health insurance premium.
New regime
Taxable income = 15,00,000 − 75,000 = ₹14,25,000. Tax = 5% of ₹4 lakh (₹20,000) + 10% of ₹4 lakh (₹40,000) + 15% of ₹2,25,000 (₹33,750) = ₹93,750. Add 4% cess (₹3,750): ₹97,500.
Old regime
Taxable income = 15,00,000 − 50,000 − 1,50,000 − 25,000 = ₹12,75,000. Tax = ₹12,500 + ₹1,00,000 + 30% of ₹2,75,000 (₹82,500) = ₹1,95,000. Add cess (₹7,800): ₹2,02,800.
The new regime saves ₹1,05,300 in this case. The old regime usually wins only when your total deductions are large – typically a big HRA exemption plus home loan interest plus full 80C and 80D. Enter your own numbers above to check.
Old vs new regime: which one should you choose?
- Income up to ₹12.75 lakh (salaried): the new regime gives zero tax, so it is almost always better.
- Few deductions: choose the new regime; its lower rates and wider slabs beat the old regime.
- High rent in a big city, home loan and full 80C/80D: compare carefully – the old regime can still win at higher incomes.
- Salaried people can switch regimes every year when filing the return. People with business income can switch back to the old regime only once.
Income tax calculator monthly: TDS on salary
Your employer deducts tax every month as TDS, roughly one-twelfth of your yearly tax. The calculator shows this monthly figure for both regimes. To see your full in-hand salary after PF, professional tax and TDS, use the salary calculator. To work out the HRA exemption to enter above, use the HRA calculator.
What is not included
Capital gains are taxed at special rates and are not part of this calculator: long-term gains on listed equity at 12.5% (with ₹1.25 lakh exempt each year) and short-term gains at 20%. Agricultural income is exempt but can raise the rate on other income under partial integration. Senior citizens with only pension and bank interest from the same bank may not need to file a return. For those cases, or for a firm or HUF, check the income tax department's own calculator or a tax adviser.
Planning to cut tax through retirement savings? See the NPS calculator and the EPF calculator.
Income tax calculator FY 2025-26 (AY 2026-27)
The slabs, the ₹75,000 standard deduction and the ₹12 lakh rebate limit first applied in FY 2025-26 and were carried forward unchanged, so this page also works as an income tax calculator for FY 2025-26 – the return you file in 2026. That is assessment year AY 2026-27: enter your FY 2025-26 salary and deductions and the result matches the return. Under the AY 2026-27 new regime rules, the income tax calculator confirms that a salary of ₹12.75 lakh still pays zero tax.
Income tax calculator for tax year 2026-27 (FY 26-27)
From April 2026 the Income-tax Act, 2025 calls the year a "tax year", so "tax year 2026-27", "FY 2026-27" and "FY 26-27" mean the same period (1 April 2026 to 31 March 2027). This income tax calculator for tax year 2026-27 uses the current slabs shown above; the income tax calculator FY 26-27 result is also your guide for this year's TDS.
Income tax calculator AY 2025-26 (FY 2024-25) slabs
For the return of FY 2024-25 (assessment year 2025-26), the new regime slabs were lower and the rebate limit was ₹7 lakh. This calculator uses the current slabs, so use the table below if you are revising or checking an older return.
| New regime taxable income (FY 2024-25) | Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹7,00,000 | 5% |
| ₹7,00,001 – ₹10,00,000 | 10% |
| ₹10,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
The income tax calculator AY 2025-26 figure for a ₹12 lakh salary is ₹71,500 under the new regime (taxable ₹11,25,000: ₹20,000 + ₹30,000 + ₹18,750, plus 4% cess). The same salary pays nil from FY 2025-26 onward.
Income tax calculator old vs new regime in India
This income tax calculator for India shows the old vs new regime result side by side, so you can see the exact difference in rupees. As a rule of thumb, comparing old vs new favours the old regime only when your deductions beyond the standard deduction are very large – often ₹4 lakh or more at incomes of ₹15–25 lakh. The new regime is the default in India unless you opt out, and the calculator shows it first.
Income tax calculator on monthly salary
To use the income tax calculator for a monthly salary, multiply the monthly gross by 12. A ₹1,00,000 monthly salary is ₹12 lakh a year and pays zero tax in the new regime. A ₹1,50,000 monthly salary is ₹18 lakh a year: taxable income ₹17,25,000, tax ₹1,45,000 plus ₹5,800 cess = ₹1,50,800, or about ₹12,567 TDS a month. The income tax calculator salary result also feeds the in-hand salary calculator.
Income tax calculator with marginal relief
Marginal relief stops your tax from jumping by more than your extra income when you cross ₹12 lakh. With taxable income of ₹12,10,000 under the new regime, slab tax would be ₹61,500, but marginal relief limits it to the ₹10,000 earned above ₹12 lakh; with cess the tax is ₹10,400. This income tax calculator with marginal relief applies that automatically, and also at the ₹50 lakh, ₹1 crore, ₹2 crore and ₹5 crore surcharge thresholds.
Income tax calculator with capital gain (LTCG and STCG)
Capital gains are taxed at flat special rates, so an income tax calculator with capital gain handles them separately from slab income. For listed shares and equity mutual funds, short-term gains (held up to 12 months) are taxed at 20% and long-term gains at 12.5% on the amount above ₹1.25 lakh a year. Most other long-term gains, such as property, are taxed at 12.5% without indexation. To include capital gains, work out the slab tax here, then add the capital gains tax and 4% cess on it. When you add LTCG and STCG, also remember that the 87A rebate cannot be set off against tax on these special-rate gains.
Income tax calculator with agriculture income
Agricultural income is tax-free, but if it exceeds ₹5,000 and your other income is above the basic exemption limit, it pushes your other income into a higher slab (partial integration). An income tax calculator with agriculture income does two calculations: tax on (other income + agricultural income) minus tax on (agricultural income + basic exemption limit). The difference is the tax you pay.
Income tax calculator for business income and partnership firms
For business income, add your profit to "Other income". Small businesses can use presumptive taxation: under Section 44AD, profit is taken as 6% of digital receipts (8% of cash receipts) for turnover up to ₹3 crore if cash receipts are within 5%, and professionals under Section 44ADA declare 50% of receipts up to ₹75 lakh. The income tax calculator for business income then applies normal slabs. A partnership firm or LLP does not get slabs at all: it pays a flat 30%, plus 12% surcharge above ₹1 crore and 4% cess, so an income tax calculator for a partnership firm is a single multiplication.
Income tax calculator head wise
Income is grouped under five heads: salaries, income from house property, profits of business or profession, capital gains, and income from other sources. An income tax calculator head wise adds salary (after the standard deduction), rent (after the 30% standard deduction and home loan interest), business profit and other income such as FD interest, then applies slabs to the total. Enter the non-salary heads together in the "Other income" box here.
Income tax calculator formula and XLS
The income tax calculator formula for the new regime is: tax = 5% × (income between ₹4–8 lakh) + 10% × (₹8–12 lakh) + 15% × (₹12–16 lakh) + 20% × (₹16–20 lakh) + 25% × (₹20–24 lakh) + 30% × (income above ₹24 lakh), then less the 87A rebate, plus surcharge and 4% cess. In an income tax calculator XLS sheet with taxable income in A1, the slab tax is =SUMPRODUCT((A1>{400000,800000,1200000,1600000,2000000,2400000})*(A1-{400000,800000,1200000,1600000,2000000,2400000})*0.05) – because each slab is 5% higher than the one below, every threshold adds 5% on the income above it.
Income tax department calculator, login and download
The Income Tax Department's e-filing portal also has a free tax calculator that needs no login. This page gives the same slab result with an old vs new comparison and a step-by-step breakdown, and needs no download or sign-up. It applies equally to employees in every state – the income tax calculator result for Kerala government employees, for instance, is the same as for anyone else, since income tax is a central tax.
Frequently asked questions
What are the income tax slabs for FY 2026-27 under the new regime?
Nil up to ₹4 lakh, 5% from ₹4–8 lakh, 10% from ₹8–12 lakh, 15% from ₹12–16 lakh, 20% from ₹16–20 lakh, 25% from ₹20–24 lakh and 30% above ₹24 lakh. Budget 2026 kept these slabs unchanged.
Is income up to ₹12 lakh tax-free in FY 2026-27?
Yes, under the new regime. The Section 87A rebate of up to ₹60,000 makes tax nil when taxable income is ₹12 lakh or less. For salaried people, the ₹75,000 standard deduction raises this to ₹12.75 lakh of salary.
Did the Income-tax Act 2025 change the tax rates?
No. The Income-tax Act 2025, in force from 1 April 2026, simplified and renumbered the law and introduced the term "tax year", but the slab rates, standard deduction and rebate limits stayed the same.
Which is better, old or new tax regime?
For most people the new regime gives lower tax. The old regime can be better if you claim large deductions such as HRA, home loan interest, full 80C and 80D. The calculator compares both and shows the saving.
How is income tax calculated in the new regime?
Subtract the ₹75,000 standard deduction (and employer NPS) from gross income, apply the slab rates, give the 87A rebate if taxable income is up to ₹12 lakh, add surcharge if income is above ₹50 lakh, then add 4% cess.
What is the standard deduction for FY 2026-27?
₹75,000 under the new regime and ₹50,000 under the old regime, for salaried employees and pensioners.
What is the income tax for senior citizens?
Under the old regime, the exemption limit is ₹3 lakh for people aged 60–79 and ₹5 lakh for those 80 and above. Under the new regime the slabs are the same for all ages.
Can I use this as a monthly income tax calculator?
Yes. The result shows the yearly tax and the approximate monthly TDS your employer will deduct under each regime.
Can I use this income tax calculator for FY 2025-26 (AY 2026-27)?
Yes. The slabs, standard deduction and ₹12 lakh rebate limit are the same for FY 2025-26 and FY 2026-27, so the result applies to both years.
How are capital gains taxed with my salary?
Capital gains are taxed separately at special rates: 20% on short-term gains from listed equity and 12.5% on long-term gains above ₹1.25 lakh. Add that tax and cess to the slab tax this calculator shows.
How is a partnership firm taxed?
A partnership firm or LLP pays a flat 30% on its total income, plus a 12% surcharge if income exceeds ₹1 crore and 4% cess. Slabs and the 87A rebate do not apply.
How much income tax will I pay on a yearly salary of ₹20 lakh?
Under the new regime, taxable income is ₹19,25,000 after the standard deduction; tax is ₹1,85,000 plus ₹7,400 cess = ₹1,92,400 a year. Enter your own yearly salary in the income tax calculator for your exact figure.
Does the tax change year wise?
Slabs can change in each Budget. The income tax calculator year wise picture: FY 2024-25 had a ₹7 lakh rebate limit, while FY 2025-26 and FY 2026-27 share the current slabs with a ₹12 lakh limit.
Last updated 2026-09-18