Income Tax Calculator
Compare old vs new regime income tax for tax year 2026-27: slabs, ₹12 lakh rebate, marginal relief, surcharge and cess, break-even deductions and monthly TDS.
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Rules for tax year 2026-27 (1 April 2026 – 31 March 2027, what used to be FY 2026-27 / AY 2027-28). Assumes a resident individual with income taxed at slab rates.
Try an example
Your age
Employer NPS
Allowed in both regimes. The limit depends on your basic pay.
Old-regime deductions
Count only in the old regime. 80C, 80D etc. are the old Act’s section numbers, used here because everyone knows them.
HRA exemption
City
Metros from tax year 2026-27: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad.
Exempt HRA ₹1,80,000
Least of HRA ₹2,40,000, rent − 10% of basic ₹1,80,000, 50% of basic ₹3,00,000.
New regime is cheaper — you save
₹49,140
Tax for the year: new regime ₹97,500, old regime ₹1,46,640 (including cess).
Old regime
₹1,46,640
₹12,220/month TDS · 9.8% of income
New regime
Cheaper₹97,500
₹8,125/month TDS · 6.5% of income
- Take-home (new regime)₹14,02,500 (94%)
- Income tax₹97,500 (7%)
Break-even deductions
The old regime wins once your old-regime deductions (HRA, 80C, 80D, NPS, home-loan interest…) total more than ₹5,43,750. You have ₹3,55,000 — ₹1,88,750 short.
Side by side
| Item | Old | New |
|---|---|---|
| Gross income | ₹15,00,000₹15L | ₹15,00,000₹15L |
| Standard deduction | −₹50,000₹50K | −₹75,000₹75K |
| Employer NPS | ₹0₹0 | ₹0₹0 |
| Your deductions (HRA, 80C…) | −₹3,55,000₹3.55L | ₹0₹0 |
| Taxable income | ₹10,95,000₹10.9L | ₹14,25,000₹14.3L |
| Tax on slabs | ₹1,41,000₹1.41L | ₹93,750₹93.8K |
| Rebate / marginal relief | ₹0₹0 | ₹0₹0 |
| Surcharge | ₹0₹0 | ₹0₹0 |
| Cess (4%) | ₹5,640₹5.64K | ₹3,750₹3.75K |
| Total tax for the year | ₹1,46,640₹1.47L | ₹97,500₹97.5K |
| Monthly TDS (estimate) | ₹12,220₹12.2K | ₹8,125₹8.13K |
Total tax is rounded to the nearest ₹10. Surcharge applies above ₹50 lakh of taxable income, with marginal relief. Monthly TDS is the year’s tax ÷ 12; employers adjust it as the year goes on.
Your old-regime deductions
- HRA exemption₹1,80,000
- 80C₹1,50,000
- 80D — self & family₹25,000
Slab by slab
| Taxable income slab | Rate | Your income in slab | Tax |
|---|---|---|---|
| Up to ₹4 Lakh | 0% | ₹4,00,000 | ₹0₹0 |
| ₹4 Lakh – ₹8 Lakh | 5% | ₹4,00,000 | ₹20,000₹20K |
| ₹8 Lakh – ₹12 Lakh | 10% | ₹4,00,000 | ₹40,000₹40K |
| ₹12 Lakh – ₹16 Lakh | 15% | ₹2,25,000 | ₹33,750₹33.8K |
| ₹16 Lakh – ₹20 Lakh | 20% | ₹0 | ₹0₹0 |
| ₹20 Lakh – ₹24 Lakh | 25% | ₹0 | ₹0₹0 |
| Above ₹24 Lakh | 30% | ₹0 | ₹0₹0 |
| Cess (4%) | ₹3,750₹3.75K | ||
| Total tax (new regime) | ₹97,500₹97.5K | ||
- Taxable income
- ₹14,25,000
- Effective tax rate
- 6.5%
How the old vs new regime comparison works
The calculator works out your tax twice, once under each regime, using the rules for tax year 2026-27. In the new regime it takes your gross income, subtracts the ₹75,000 standard deduction and your employer’s NPS contribution, applies the slabs, then the rebate. In the old regime it subtracts the ₹50,000 standard deduction, employer NPS and every deduction you enter — each capped at its limit — before applying the old slabs and the ₹5 lakh rebate. Both then add surcharge (above ₹50 lakh) and 4% health and education cess, and the total is rounded to the nearest ₹10.
Example: a salary of ₹13,00,000 with no other income. New regime: taxable income is ₹12,25,000 and slab tax is ₹63,750, but marginal relief caps the tax at the ₹25,000 by which income crosses ₹12 lakh. With ₹1,000 cess you pay ₹26,000. Old regime with no deductions: taxable ₹12,50,000, tax ₹1,87,500 plus ₹7,500 cess = ₹1,95,000. The old regime would only catch up with ₹6,87,500 of deductions — the break-even figure the calculator shows. A ₹10 lakh salary with full 80C (₹1.5 lakh) and ₹25,000 of 80D pays ₹70,200 in the old regime and nothing in the new one.
What “tax year 2026-27” means
From 1 April 2026 the Income-tax Act, 2025 is in force. Instead of “financial year 2026-27, assessment year 2027-28” it simply says tax year 2026-27: 1 April 2026 to 31 March 2027. Budget 2026 left the slabs, rebate and standard deduction unchanged, so the figures below are the same as in the year before. The new Act also renumbered sections; we still say 80C, 80D and so on because those are the names on most payslips and investment proofs.
New regime slabs (the default)
| Taxable income | Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4 – 8 lakh | 5% |
| ₹8 – 12 lakh | 10% |
| ₹12 – 16 lakh | 15% |
| ₹16 – 20 lakh | 20% |
| ₹20 – 24 lakh | 25% |
| Above ₹24 lakh | 30% |
Residents with taxable income up to ₹12 lakh get a rebate of up to ₹60,000, so they pay nothing. Just above ₹12 lakh, marginal relief makes sure the tax is never more than the income above ₹12 lakh. With the ₹75,000 standard deduction, that makes a salary of up to ₹12.75 lakh tax-free.
Old regime slabs and deductions
Below 60: nil up to ₹2.5 lakh, 5% up to ₹5 lakh, 20% up to ₹10 lakh and 30% above. The nil band is ₹3 lakh for senior citizens (60–79) and ₹5 lakh for super-senior citizens (80+). Taxable income up to ₹5 lakh is tax-free thanks to a rebate of up to ₹12,500. The deductions this calculator applies, with their limits:
- 80C — EPF, PPF, ELSS, life insurance, tuition fees, home-loan principal: up to ₹1,50,000.
- 80D — health insurance: ₹25,000 for self and family (₹50,000 if you are 60+), plus ₹25,000 for parents (₹50,000 if a parent is 60+).
- 80CCD(1B) — your own NPS contribution: an extra ₹50,000.
- Home-loan interest on a self-occupied house: up to ₹2,00,000.
- HRA exemption — the least of HRA received, rent minus 10% of basic + DA, and 50% (metro) or 40% of basic + DA.
- 80TTA / 80TTB — savings interest up to ₹10,000, or deposit interest up to ₹50,000 for seniors.
- 80E and 80G — education-loan interest (no cap) and eligible donations.
Surcharge and cess
Above ₹50 lakh of taxable income a surcharge is added to the tax: 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore, and 37% above ₹5 crore in the old regime (the new regime stops at 25%). Marginal relief applies at each step, so earning a little over a threshold never costs more in extra tax than the extra income. Finally, 4% health and education cess is charged on tax plus surcharge. For a ₹60 lakh salary the new regime works out to ₹15,52,980 and the old regime (no deductions) to ₹18,27,540.
Which regime should you pick?
Look at the break-even line. It shows how much you would need to claim in old-regime deductions for the old regime to cost the same. For salaries above ₹12.75 lakh it is roughly ₹5.4–8 lakh (₹8 lakh once taxable income passes ₹24 lakh) — far more than 80C and 80D alone — so the new regime usually wins unless you also pay high rent in a metro or interest on a home loan. Seniors with modest pensions often pay nothing in either. For your exact HRA, try the HRA exemption calculator.
Rules can change — confirm with Form 16, your employer or a CA before filing. This is an estimate for resident individuals; it leaves out capital gains and other special-rate income.
Frequently asked questions
Is a salary of ₹12.75 lakh really tax-free in tax year 2026-27?
Yes, for a salaried resident in the new regime with no special-rate income. The ₹75,000 standard deduction brings ₹12.75 lakh down to ₹12 lakh of taxable income, and the rebate wipes out the ₹60,000 of slab tax. At ₹13 lakh, marginal relief limits the tax to ₹25,000 plus ₹1,000 cess.
Can I choose the old regime every year?
Salaried people and pensioners without business income have been able to choose the regime each year when filing the return, even if they told their employer something different for TDS. If you have business or professional income, switching is restricted — confirm the current rules with a CA before you rely on it.
Is HRA exempt in the new regime?
No. In the new regime the whole HRA is taxable, along with most other exemptions. HRA, 80C, 80D and home-loan interest on a self-occupied house count only in the old regime. The employer’s NPS contribution is the main deduction allowed in both.
Why does the calculator say “tax year” instead of financial year?
The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. It drops the “previous year / assessment year” pair and uses a single “tax year” — the year in which you earn the income. Tax year 2026-27 runs from 1 April 2026 to 31 March 2027, the period you would earlier have called FY 2026-27 (AY 2027-28).
Does this cover capital gains and other special-rate income?
No. Gains on shares and equity funds, lottery winnings and similar income are taxed at their own rates, and the rebate does not apply to them. This calculator assumes everything is taxed at slab rates, which fits most salaried people and pensioners.