Income Tax Calculator · FY 2026-27
Income Tax Calculator — new vs old regime.
Estimate your income tax under both regimes for FY 2026-27 (AY 2027-28). Side-by-side comparison includes standard deduction, 87A rebate, surcharge bands and the 4% cess. The calculator tells you which regime saves more.
- Updated May 2026
- Built by CA Anil Agarwal
Total gross income — salary, business, interest etc. (Capital gains and special-rate income are not modelled here.)
Age affects the old-regime basic exemption. New regime is age-neutral.
Old-regime deductions
Only used for the old-regime column. Leave blank if you don't claim them.
New regime
FY 2026-27 default
₹97,500
Total tax payable
- Gross income
- ₹15,00,000
- Standard deduction
- − ₹75,000
- Taxable income
- ₹14,25,000
- Slab tax
- ₹93,750
- Tax after rebate
- ₹93,750
- Cess (4%)
- ₹3,750
- Total tax
- ₹97,500
Old regime
With deductions
₹1,87,200
Total tax payable
- Gross income
- ₹15,00,000
- Standard deduction
- − ₹50,000
- Other deductions
- − ₹2,25,000
- Taxable income
- ₹12,25,000
- Slab tax
- ₹1,80,000
- Tax after rebate
- ₹1,80,000
- Cess (4%)
- ₹7,200
- Total tax
- ₹1,87,200
Recommendation
New regime saves you ₹89,700
Based on the figures you entered, the new regime results in lower total tax for FY 2026-27. Salaried taxpayers can switch each year; business income taxpayers must file Form 10-IEA to opt out of the new regime.
Indicative estimate for FY 2026-27 only. Capital gains and other special-rate income are not included, and surcharge marginal relief (for total income above ₹50 lakh) is not modelled — check with your CA before relying on the figure.
Books that make the regime choice obvious.
The estimate above is only as good as your numbers. TatvaBooks keeps salary, TDS and deduction figures clean all year — and computes advance tax on top — so running new vs old at filing is a calculation, not a scramble.
Income tax slabs FY 2026-27 (AY 2027-28)
The new regime is the default and runs seven slabs with a ₹75,000 standard deduction and full 87A rebate up to ₹12 lakh of taxable income. The old regime keeps the familiar three-rate structure but lets you claim 80C, 80D, HRA, home-loan interest and other deductions. The slabs below are exactly what the calculator above applies.
| New regime (FY 2026-27) | Rate | Old regime (FY 2026-27) | Rate |
|---|---|---|---|
| Up to ₹4,00,000 | Nil | Up to ₹2,50,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% | ₹2,50,001 – ₹5,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% | ₹5,00,001 – ₹10,00,000 | 20% |
| ₹12,00,001 – ₹16,00,000 | 15% | Above ₹10,00,000 | 30% |
| ₹16,00,001 – ₹20,00,000 | 20% | Basic exemption ₹3L (age 60–80) / ₹5L (80+) | — |
| ₹20,00,001 – ₹24,00,000 | 25% | Standard deduction ₹50,000 | — |
| Above ₹24,00,000 | 30% | 87A rebate up to ₹5L taxable | — |
Worked example — tax on a ₹15 lakh salary (new regime, salaried): after the ₹75,000 standard deduction, taxable income is ₹14,25,000. Slab tax is ₹93,750 (no 87A rebate above ₹12 lakh); add 4% cess of ₹3,750 for a total of ₹97,500. The old regime would charge ₹2,57,400 on the same salary with no deductions — which is why the new regime usually wins unless you claim substantial deductions.
How it works
Two regimes, one comparison.
The choice of regime
Since AY 2024-25 the new regime is the default. You are taxed under it unless you actively opt out. Salaried taxpayers can pick a regime each year while filing the return — no separate form. Business and professional income taxpayers must file Form 10-IEA at the start of the financial year to opt out of the new regime, and the option to switch back is one-way after a couple of cycles.
What the calculator does
The calculator computes tax under both regimes in parallel using FY 2026-27 slabs. For the new regime, it applies the ₹75,000 standard deduction (if you flag yourself as salaried), runs the 0/5/10/15/20/25/30% slabs, applies the 87A rebate (up to ₹60,000 for taxable income at or below ₹12 lakh), surcharge in bands (capped at 25%), and the 4% cess. For the old regime, it applies the ₹50,000 standard deduction, your claimed deductions (capped at the statutory ceilings — ₹1.5L for 80C, ₹2L for 24(b), etc.), age-based basic exemption, slab tax, the ₹12,500 87A rebate up to ₹5L, surcharge, and cess.
87A rebate and the ₹12L break-point
The 87A rebate is the headline new-regime feature for FY 2026-27. If your taxable income (after standard deduction) is at or below ₹12 lakh, the rebate wipes out the entire slab tax (up to ₹60,000). Cross ₹12 lakh by even a rupee and the rebate would otherwise disappear — but marginal relief caps total tax at the amount of income exceeding ₹12 lakh, so a taxpayer at ₹12.10 lakh pays at most ₹10,000 (and not the full slab tax). This calculator applies marginal relief automatically in the phase-out band.
Surcharge bands
Surcharge is levied on the income-tax amount where total income crosses thresholds — 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore, and 37% above ₹5 crore. Under the new regime, the 37% slab does not apply; the maximum surcharge is 25%. The 4% Health and Education Cess sits on top of (tax + surcharge) in both regimes.
What this calculator does not handle
Capital gains at special rates (10% LTCG on equity above ₹1L, 12.5% on listed equity / 20% on unlisted post Finance Act 2024), foreign income with DTAA reliefs, lottery and gaming income, AMT for LLPs, marginal relief at surcharge thresholds, and TDS or advance-tax adjustments. For tax planning across these heads, please consult a Chartered Accountant — and see our income tax guide for the conceptual map.
Frequently asked questions
Income tax calculator — common questions.
How does this income tax calculator work?
What are the new-regime tax slabs for FY 2026-27?
What is the 87A rebate under the new regime?
What are the old-regime tax slabs?
When does old regime save more than new regime?
What is the 87A rebate under the old regime?
What is the surcharge structure?
How do I switch between regimes?
What is not covered by this calculator?
Does the new regime allow any deductions?
What is the 4% cess?
Where can I read more on income tax in India?
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