Income Tax Calculator FY 2026-27

Compare Old vs New Tax Regimes with full slab details.

Deductions (Old Regime Only)

Tax Regime Comparisons

New Regime

₹0

Slabs up to 30%

Old Regime

₹0

With deductions

Recommended Choice

Switch to New Regime & save ₹0!

New Regime Taxable Income₹0
Old Regime Taxable Income₹0
New Regime Education Cess (4%)₹0
Old Regime Education Cess (4%)₹0

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About This Calculator & Guide

The Indian Income Tax Calculator is a comprehensive comparison tool built for salaried employees, freelancers, and small business owners to compute their tax liabilities under the Central Board of Direct Taxes (CBDT) rules. This calculator computes and compares liabilities side-by-side for Financial Year (FY) 2026-27 (corresponding to Assessment Year AY 2027-28), incorporating all recent union budget amendments.

Old vs. New Tax Regime: Key Differences

India provides taxpayers with two choices for calculating annual income tax:

  1. The Old Tax Regime: Features higher slab tax percentages but allows taxpayers to claim dozens of tax deductions and exemptions (such as Section 80C, Section 80D, HRA rent claims, and Home Loan interest exemptions).
  2. The New Tax Regime (Default): Implements much lower tax slab percentages but removes almost all tax exemptions. To make it more attractive, recent budgets have increased the New Regime standard deduction and the Section 87A rebate limits.

Tax Slab Tables for FY 2026-27 (AY 2027-28)

1. New Tax Regime Slabs

Income Slabs (New Regime) Tax Rate
Up to ₹3,000,000 (₹3 Lakhs) Nil
₹300,001 to ₹700,000 5%
₹700,001 to ₹1,000,000 10%
₹1,000,001 to ₹1,200,000 15%
₹1,200,001 to ₹1,500,000 20%
Above ₹1,500,000 (₹15 Lakhs) 30%

Section 87A Rebate Note: Under the New Tax Regime, if your total taxable income is up to **₹7,00,000**, you receive a full tax rebate under Section 87A, making your tax liability **Zero**.

2. Old Tax Regime Slabs

Income Slabs (Old Regime) Tax Rate
Up to ₹250,000 (₹2.5 Lakhs) Nil
₹250,001 to ₹500,000 5%
₹500,001 to ₹1,000,000 20%
Above ₹1,000,000 (₹10 Lakhs) 30%

Section 87A Rebate Note: Under the Old Tax Regime, if your total taxable income is up to **₹5,00,000**, you receive a full rebate under Section 87A, making your tax liability **Zero**.

Key Deductions Explained

To reduce tax liabilities under the Old Regime, users can configure deductions:

  • Standard Deduction: A flat deduction allowed automatically for salaried individuals. It is **₹75,000** for the New Regime and **₹50,000** for the Old Regime.
  • Section 80C (Max ₹1,50,000): Covers investments in Employee Provident Fund (EPF), Public Provident Fund (PPF), National Savings Certificates (NSC), life insurance premium payments, and tax-saver mutual funds (ELSS).
  • Section 80D (Max ₹50,000): Tax exemption for health insurance premiums paid for self, spouse, children, and parents.
  • Section 24(b) (Max ₹2,00,000): Interest paid on home loans for self-occupied property.
  • House Rent Allowance (HRA): Salaried employees paying house rent can deduct rent expenditures based on HRA formulas.

The 4% Health & Education Cess

Once base tax is computed, a mandatory **4% Health & Education Cess** is applied to the final calculated tax amount across both old and new regimes. This cess funds governmental public health and basic schooling initiatives.

FAQ

Frequently Asked Questions

What is the standard deduction for FY 2026-27?+

For FY 2026-27, the standard deduction for salaried individuals is ₹75,000 under the New Tax Regime, and ₹50,000 under the Old Tax Regime.

Which tax regime is better for me?+

Generally, if you do not have significant investments (like home loans or high HRA claims), the New Tax Regime yields lower tax obligations due to its wider slabs. If your deductions exceed ₹3.75 Lakhs, the Old Regime may save you money. This calculator computes and highlights the lower option automatically.

How does Section 87A rebate work under both regimes?+

Section 87A rebate makes your income tax zero if your taxable income stays below the set thresholds: up to ₹7 Lakhs for the New Regime, and up to ₹5 Lakhs for the Old Regime.