How to use the Income Tax Calculator India FY 2026-27
- Enter your total annual income (gross salary plus other regular income).
- For the old regime, enter your total deductions and exemptions: 80C (up to ₹1.5 lakh), 80D, HRA, home loan interest and others.
- Keep "Salaried" ticked to apply the standard deduction (₹75,000 new, ₹50,000 old).
- Compare the tax under both regimes. The cheaper one is highlighted.
Income tax slabs FY 2026-27 (AY 2027-28)
| New regime (default) | Rate | Old regime (below 60) | Rate |
|---|---|---|---|
| Up to ₹4 lakh | Nil | Up to ₹2.5 lakh | Nil |
| ₹4–8 lakh | 5% | ₹2.5–5 lakh | 5% |
| ₹8–12 lakh | 10% | ₹5–10 lakh | 20% |
| ₹12–16 lakh | 15% | Above ₹10 lakh | 30% |
| ₹16–20 lakh | 20% | ||
| ₹20–24 lakh | 25% | ||
| Above ₹24 lakh | 30% |
Rebate u/s 87A: up to ₹60,000 if taxable income is up to ₹12 lakh (new regime, with marginal relief just above it), or up to ₹12,500 if up to ₹5 lakh (old regime). Health and education cess of 4% is added to the tax.
Worked examples
| Income | Old-regime deductions | New regime tax | Old regime tax |
|---|---|---|---|
| ₹8,00,000 | ₹1,50,000 | ₹0 | ₹33,800 |
| ₹12,75,000 | ₹1,50,000 | ₹0 | ₹1,40,400 |
| ₹15,00,000 | ₹2,00,000 | ₹97,500 | ₹1,95,000 |
| ₹20,00,000 | ₹3,75,000 | ₹1,92,400 | ₹2,96,400 |
| ₹30,00,000 | ₹3,75,000 | ₹4,75,800 | ₹6,08,400 |
Which regime should you choose?
The new regime is the default and is better for most salaried people, because its rates are lower and the rebate covers income up to ₹12 lakh. The old regime can win only if you claim large deductions, typically more than ₹4 to ₹5 lakh in total. Investing the tax you save? See returns with the SIP Calculator or plan a loan with the Loan EMI Calculator.
Frequently asked questions
Is income up to ₹12 lakh tax-free in FY 2026-27?
Yes, under the new regime. Tax on ₹12 lakh taxable income is ₹60,000, and the Section 87A rebate cancels it. Salaried people also get a ₹75,000 standard deduction, so salary up to ₹12.75 lakh pays no tax.
Did Budget 2026 change the income tax slabs?
No. The slabs announced in Budget 2025 continue for FY 2026-27.
How much tax on ₹15 lakh salary?
Under the new regime, taxable income is ₹14.25 lakh and tax is ₹93,750 plus 4% cess, or ₹97,500 in total.
Can I switch between regimes every year?
Salaried individuals without business income can choose the regime each year when filing their return.
Is there a rebate in the old regime?
Yes, up to ₹12,500 if taxable income is ₹5 lakh or less.
Sources and references
Our team builds and tests every tool by hand, checks each formula against official sources (IRS, HMRC, the Income Tax Department of India, CBSE, NHS, WHO) and reviews pages whenever rules change. Last reviewed on . Spotted a mistake? Tell us.