Income Tax Calculator FY 2026-27 — Old vs New Regime
Enter your salary and see your tax under both regimes side-by-side, with a full slab-wise breakdown. 100% private — everything is computed in your browser.
Tax composition
Winning regime breakdown
New Regime
- Taxable income
- –
- Slab tax
- –
- 87A rebate
- –
- Surcharge
- –
- Health & education cess (4%)
- –
–
Old Regime
- Taxable income
- –
- Slab tax
- –
- 87A rebate
- –
- Surcharge
- –
- Health & education cess (4%)
- –
–
Old regime vs new regime — explained simply
India has two income-tax regimes, and you can pick the cheaper one every year. The old regime rewards you for saving and spending in specific ways: investments under 80C (PPF, ELSS, EPF), health insurance under 80D, HRA, and home-loan interest all reduce your taxable income. Its tax slabs are steeper, but if you claim large deductions, it often wins.
The new regime works the opposite way: fewer deductions, but much lower slab rates and a generous standard deduction of ₹75,000 that everyone gets automatically. Its headline feature is the Section 87A rebate — if your taxable income is ₹12 lakh or less, your tax is zero. For most salaried people who don't max out 80C, the new regime is cheaper.
A few mechanics worth knowing. Marginal relief protects you just above the ₹12 lakh line: if your taxable income is ₹12.1 lakh, your tax can't exceed ₹10,000 (the amount above ₹12 lakh) — you never pay more tax than the extra income that pushed you over. A 4% health and education cess applies on top of your tax, and a surcharge kicks in at very high incomes (10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore).
The practical rule: if your total deductions (80C + 80D + HRA + home loan interest) exceed roughly ₹4–5 lakh, run the numbers for the old regime — otherwise the new regime usually wins. This calculator does exactly that comparison, instantly.
Worked examples
Example 1 — ₹12,00,000 salary, age 35, ₹1,50,000 deductions
New regime: taxable income = 12,00,000 − 75,000 (standard deduction) = ₹11,25,000. Since this is ≤ ₹12,00,000, the 87A rebate wipes the tax to ₹0.
Old regime: taxable income = 12,00,000 − 50,000 − 1,50,000 = ₹10,00,000. Slab tax = ₹12,500 (2.5–5L @ 5%) + ₹1,00,000 (5–10L @ 20%) = ₹1,12,500, plus 4% cess ₹4,500 = ₹1,17,000.
Winner: new regime — saves ₹1,17,000.
Example 2 — ₹18,00,000 salary, age 35, ₹1,50,000 deductions
| New regime slab | Tax |
|---|
| ₹4–8L @ 5% | ₹20,000 |
| ₹8–12L @ 10% | ₹40,000 |
| ₹12–16L @ 15% | ₹60,000 |
| ₹16–17.25L @ 20% | ₹25,000 |
| Slab tax | ₹1,45,000 |
| + 4% cess | ₹5,800 |
| Total | ₹1,50,800 |
Old regime: taxable = 18,00,000 − 50,000 − 1,50,000 = ₹16,00,000. Slab tax = ₹12,500 + ₹1,00,000 + ₹1,80,000 (10–16L @ 30%) = ₹2,92,500, plus 4% cess ₹11,700 = ₹3,04,200.
Winner: new regime — saves ₹1,53,400.
Frequently asked questions
What is the Section 87A rebate?
Section 87A gives you a full rebate on your tax if your taxable income is within the limit — ₹12,00,000 under the new regime (FY 2026-27) and ₹5,00,000 under the old regime. If you qualify, your income tax becomes zero. Note the rebate applies to income tax, not to the 4% cess — but with zero tax, cess is zero too.
What is marginal relief?
Marginal relief stops an unfair jump at the 87A boundary. Without it, earning ₹1 more above ₹12 lakh could cost you tens of thousands in tax. With it, your tax is capped at the amount by which your income exceeds ₹12 lakh. Example: taxable income of ₹12,50,000 → tax is limited to ₹50,000 instead of the full slab calculation of ₹67,500.
Which regime should I choose — old or new?
As a rule of thumb: if your total deductions (80C investments, 80D insurance, HRA, home-loan interest) are large — roughly above ₹4–5 lakh — the old regime can win. Otherwise the new regime's lower slabs and ₹75,000 standard deduction usually make it cheaper. The honest answer is to compute both, which is exactly what this calculator does.
How is the standard deduction different in each regime?
Salaried individuals get a standard deduction of ₹75,000 under the new regime and ₹50,000 under the old regime. It's automatic — no investment or paperwork needed — and it's already applied in this calculator's results.
Are senior citizens taxed differently?
Under the old regime, yes: the tax-free slab rises to ₹3,00,000 for ages 60–80 and ₹5,00,000 for those above 80 (vs ₹2,50,000 below 60). Under the new regime the slabs are the same for all ages. Select your age group above and the calculator applies the right slabs.
What is the 4% health and education cess?
A 4% cess is levied on your total tax liability (income tax plus surcharge, if any). It applies under both regimes and is included in this calculator's totals automatically.
When does surcharge apply?
Surcharge is an extra charge on high incomes: 10% of your tax when taxable income is ₹50 lakh–₹1 crore, 15% for ₹1–2 crore, and 25% above ₹2 crore (capped at 25% under the new regime). Most salaried taxpayers never hit it, but this calculator includes it for completeness.
Can I switch between regimes every year?
Yes. Salaried individuals can choose the regime each financial year when filing returns — pick whichever gives the lower tax for that year. (Business income has stricter switching rules.) Re-run this calculator annually as your salary and deductions change.
Do my 80C deductions matter in the new regime?
No. The new regime doesn't allow 80C (PPF, ELSS, EPF), 80D, or HRA deductions — that's the trade-off for its lower slab rates. Only the ₹75,000 standard deduction applies. Enter your deductions above and compare: if they don't beat the new regime's lower rates, the new regime wins.
Is this calculator's result my final tax liability?
It's an estimate for salary income under the stated assumptions. Capital gains, rental income, business income, and perquisites have their own rules. Tax figures here must be verified against the Finance Act for FY 2026-27 — for a final filing, confirm with a chartered accountant.
Disclaimer: This is an estimate for illustration, computed in your browser — no data leaves your device. Tax slabs, rebates and thresholds are per the build spec and must be verified against the Finance Act for FY 2026-27 before reliance. Consult a chartered accountant for filing.