Income Tax Calculator India, FY2026-27

Everything this calculator accounts for

Indian income tax on a salary is not just a single percentage applied to your pay. This tool walks through every step the Income Tax Department actually applies, in order, so the final figure matches what you would see on a real tax computation.

• The standard deduction, Rs 75,000 in the new regime or Rs 50,000 in the old regime
• Any other deductions you claim under the old regime (80C, 80D, HRA exemption, home loan interest)
• Slab-by-slab income tax on what remains
• The Section 87A rebate, which zeroes out tax below a threshold
• Surcharge, for taxable income above Rs 50 lakh
• 4% health and education cess on the tax-plus-surcharge total

New regime tax slabs for FY2026-27

These are the rates confirmed for FY2026-27: the Union Budget 2026 made no changes to the slabs introduced the previous year, so they carry forward unchanged. The new regime has been the default for salaried taxpayers since FY2023-24.

Old regime tax slabs for FY2026-27

The old regime's slabs are also unchanged for FY2026-27. Choosing it only makes sense once your eligible deductions are large enough to offset its higher rates, which is why this tool lets you enter a combined deductions figure and compare directly against the new regime result.

Worked example: Rs 18,00,000 salary, both regimes

Take a Rs 18,00,000 annual salary as an example. Under the new regime with no other deductions, taxable income is Rs 17,25,000 after the Rs 75,000 standard deduction, giving a total tax and cess figure of about Rs 1,50,800 and a take-home figure of about Rs 16,49,200. Under the old regime, assuming Rs 2,50,000 of combined deductions (a full Section 80C claim, health insurance, and part of a home loan's interest), taxable income comes down to Rs 15,00,000, giving a total tax and cess figure of about Rs 2,73,000 and a take-home figure of about Rs 15,27,000. At this deduction level the new regime still comes out ahead by more than Rs 1,20,000; a taxpayer with substantially larger deductions, particularly a bigger home loan interest claim, would need considerably more than Rs 2,50,000 of old-regime deductions to close that gap. Run your own numbers through both regimes in the calculator above, or see the full side-by-side comparison tool for a direct result.

Section 87A rebate: when your tax bill is zero

The Section 87A rebate is the single biggest reason many salaried taxpayers pay no income tax at all. In the new regime, if your taxable income (after the standard deduction) is Rs 12,00,000 or less, the rebate cancels up to Rs 60,000 of tax, which fully covers the tax due at that level. That means a gross salary up to roughly Rs 12,75,000 attracts zero income tax under the new regime. In the old regime the equivalent threshold is Rs 5,00,000 taxable income, with a maximum rebate of Rs 12,500.

This calculator applies the rebate automatically once your taxable income qualifies. One nuance it does not model: marginal relief right at the threshold, a provision that caps the tax increase for someone whose income lands just over the cutoff, so it never jumps by more than the amount their income exceeds the threshold. If your taxable income sits within a few thousand rupees of Rs 12,00,000 (new) or Rs 5,00,000 (old), check the exact figure with the Income Tax Department's own tools.

Surcharge on higher incomes

The new regime caps surcharge at 25%, even for the very highest incomes, since the top 37% surcharge band was removed from the new regime starting FY2023-24. In the old regime, the 37% band still applies above Rs 5 crore. Surcharge is calculated on the income tax itself (after the 87A rebate), not on your income directly, and this calculator applies it exactly that way.

Health and education cess

A flat 4% cess applies to the sum of income tax and surcharge, for every taxpayer with a positive tax liability, regardless of income level. There is no separate threshold for cess: if your tax after the 87A rebate is zero, cess is also zero, since 4% of nothing is still nothing. If any tax is due, cess is added automatically in the breakdown above.

Who should use the old regime instead

The old regime is worth actively choosing only if your genuine, documented deductions are large enough to bring your taxable income down by more than the new regime's already-higher standard deduction and rebate threshold effectively give you for free. In practice this usually means one or more of: home loan interest under Section 24(b), a full Rs 1,50,000 Section 80C investment (PPF, ELSS, life insurance premiums, and similar), health insurance premiums under Section 80D, and HRA exemption if you pay rent in a city where it is significant relative to your basic pay. Enter your own combined total in the old-regime deductions field above and compare the result directly against the new regime figure the calculator shows by default. If your salary is quoted as a CTC figure rather than a plain gross salary, run it through the in-hand salary calculator first to get the gross figure this tool expects.