Income Tax Calculator
Income Tax Calculator
FY 2026-27 (AY 2027-28) · old vs new regime, side by sideAge group
Age affects old-regime exemption slab only (₹2.5L / ₹3L / ₹5L). New regime is age-agnostic.
Salaried (gets standard deduction)
Deductions (old regime only)
§24(b) home loan interest, §80E education loan interest, LTA, §80G donations etc.
New regime wins
Save ₹89,700
By picking the new regime for FY 2026-27
Old Regime (opt-in)
₹1.87 L
12.48% effective rate
Old regime vs new regime — the only choice that matters
The new regime (§115BAC, default since FY 2023-24) trades deductions for lower headline slabs and a much bigger §87A rebate. The old regime keeps the higher slabs but lets you deduct §80C, §80D, §80CCD(1B), HRA, home loan interest, and a handful of others. The two-regime choice is the single biggest tax decision a salaried payer makes each year — for some it saves ₹20,000; for others, ₹1.5 lakh+.
New regime — FY 2026-27 slabs
- Nil up to ₹4 lakh
- 5% on ₹4 lakh – ₹8 lakh
- 10% on ₹8 lakh – ₹12 lakh
- 15% on ₹12 lakh – ₹16 lakh
- 20% on ₹16 lakh – ₹20 lakh
- 25% on ₹20 lakh – ₹24 lakh
- 30% above ₹24 lakh
Standard deduction: ₹75,000 for salaried. §87A rebate up to ₹60,000 if taxable income ≤ ₹12 lakh — meaning a salaried payer with ₹12.75 lakh gross income pays exactly zero tax. Surcharge capped at 25% (no 37% band even above ₹5 crore). 4% Health & Education Cess on top.
Old regime — FY 2026-27 slabs
Three slab schedules depending on age:
- Below 60: Nil up to ₹2.5L, 5% to ₹5L, 20% to ₹10L, 30% above
- Senior (60–79): Nil up to ₹3L, then same break-points
- Super senior (80+): Nil up to ₹5L, then 20% to ₹10L, 30% above
Standard deduction: ₹50,000 for salaried. §87A rebate up to ₹12,500 if taxable income ≤ ₹5 lakh. Surcharge: 10% / 15% / 25% / 37% across the ₹50L / ₹1Cr / ₹2Cr / ₹5Cr thresholds. 4% cess applies.
Deductions allowed in the old regime
- §80C: PPF, EPF, ELSS, NSC, life insurance, tax-saver FD, home loan principal, SSY — combined cap ₹1.5 lakh.
- §80CCD(1B): additional ₹50K for NPS Tier I — exclusive to NPS, over and above §80C.
- §80D: medical insurance — ₹25K self+family if below 60; ₹50K if senior; same caps for parents (so up to ₹1L if both self and parents are 60+).
- §10(13A) HRA: minimum of (actual HRA, rent − 10% basic+DA, 50%/40% basic+DA for metro/non-metro).
- §24(b): home loan interest, up to ₹2 lakh for self-occupied; full deduction for let-out property.
- §80E: full deduction on education loan interest for 8 years.
- §80G: donations to approved institutions (50% or 100% deductible per the notification).
Deductions allowed in the new regime
Very limited — by design:
- Standard deduction for salaried / pensioners.
- §80CCD(2): employer NPS contribution up to 10% of basic+DA (14% for central government).
- Family pension deduction up to ₹15,000 or 1/3rd of pension.
- Agniveer Corpus Fund (§80CCH).
The crossover income — rule of thumb
The break-even between regimes depends on how much you can actually deduct in the old regime. A common heuristic for FY 2026-27: if your eligible old-regime deductions (§80C + §80CCD(1B) + §80D + HRA + §24(b) + others) exceed roughly ₹3–4 lakh, old regime usually wins. If your deductions are smaller — or if you take only standard deduction and §80C — new regime almost always wins now, thanks to the expanded §87A rebate.
How to actually opt in
Salaried employees: declare your chosen regime to your employer at the start of the financial year so TDS is computed correctly. You can switch at filing time if you change your mind.
Non-salaried (business / professional income): file Form 10-IEA to opt out of the default new regime. Once opted out, you can switch back to the new regime only once in a lifetime, with restrictions.
FY 2026-27 slabs, §87A rebate, surcharge bands, and cess rate verified 2026-05-28 against incometax.gov.in and Finance Act 2026. Finance Act 2026 made no slab changes vs FY 2025-26.
FAQs
It depends on the deductions you actually claim. The new regime has lower headline rates and a higher §87A rebate (zero tax up to ₹12 lakh taxable income), but allows almost no deductions besides standard deduction and §80CCD(2) employer NPS. The old regime has higher headline rates but lets you deduct §80C (₹1.5 lakh), §80D, §80CCD(1B) NPS (₹50K extra), HRA, and home loan interest. Rule of thumb: if your eligible deductions exceed roughly ₹3–4 lakh, the old regime usually wins. Otherwise the new regime wins.
NEW REGIME (default): Nil up to ₹4L; 5% (₹4L–₹8L); 10% (₹8L–₹12L); 15% (₹12L–₹16L); 20% (₹16L–₹20L); 25% (₹20L–₹24L); 30% above ₹24L. §87A rebate up to ₹60,000 if taxable income ≤ ₹12L. OLD REGIME (below 60): Nil up to ₹2.5L; 5% (₹2.5L–₹5L); 20% (₹5L–₹10L); 30% above ₹10L. §87A rebate up to ₹12,500 if taxable income ≤ ₹5L. Senior (60-79): nil up to ₹3L. Super senior (80+): nil up to ₹5L. Both regimes add 4% Health & Education Cess on tax + surcharge.
Section 87A is a tax-credit that reduces your total tax to zero if your taxable income is below the threshold. In the new regime: threshold ₹12 lakh, max rebate ₹60,000 — meaning a salaried person with ₹12.75 lakh gross income (after ₹75K standard deduction) pays zero tax. In the old regime: threshold ₹5 lakh, max rebate ₹12,500 — much smaller cushion. The new regime's expanded §87A is the single biggest reason most middle-income payers now find the new regime more attractive.
Very limited: (1) Standard deduction of ₹75,000 for salaried/pensioners; (2) Employer's NPS contribution under §80CCD(2) up to 10% of basic+DA (14% for central government employees); (3) Family pension deduction up to ₹15,000 or 1/3rd of pension; (4) Agniveer Corpus Fund (§80CCH). Everything else — §80C, §80D, §80CCD(1B), HRA, LTA, home loan interest on self-occupied — is disallowed.
Big one: the new regime caps surcharge at 25% (the 37% slab above ₹5 crore was removed). The old regime keeps the full progression: 10% (₹50L-1Cr), 15% (1Cr-2Cr), 25% (2Cr-5Cr), 37% (above 5Cr). For ultra-high incomes (₹5 crore+), the new regime's 25% cap can save 12 percentage points on the surcharge tier alone — a major reason the old regime rarely wins at the very top end now.
New regime: Gross salary − Standard deduction (₹75K if salaried) = taxable income. Old regime: Gross salary − Standard deduction (₹50K if salaried) − §80C (capped ₹1.5L) − §80D (capped ₹1L combined) − §80CCD(1B) NPS additional (capped ₹50K) − HRA exempt amount − Other Chapter VI-A deductions = taxable income. Slab tax is then applied. §87A rebate reduces tax for low incomes; surcharge is added for high incomes; 4% cess is layered on top.
Claim it if you genuinely pay rent. HRA exemption is the lower of: (1) actual HRA, (2) rent − 10% of basic+DA, (3) 50% of basic+DA for metro or 40% for non-metro. For most rent-paying salaried payers, HRA exemption alone is ₹50K–₹2L per year, which materially shifts the new-vs-old calculation. If you don't pay rent (own home, family home, company accommodation), there's no HRA exemption to claim regardless of what your payslip shows.
Health & Education Cess is 4% on (slab tax + surcharge). It applies in both regimes. So a slab tax of ₹1,00,000 with no surcharge becomes ₹1,00,000 + ₹4,000 cess = ₹1,04,000. With a ₹15,000 surcharge: ₹1,00,000 + ₹15,000 + ₹4,600 cess = ₹1,19,600. The cess rate hasn't changed in recent budgets and stays at 4%.
Salaried individuals: at the start of each financial year (April), declare the regime to your employer for accurate TDS. You can still switch at filing time if you change your mind. Non-salaried individuals (business income): once you opt out of the default new regime, you can switch back to new regime only once, with restrictions. For salaried, it's effectively a yearly choice with no permanent lock-in.
It's a planning estimate. The calculator handles the major levers — slabs, standard deduction, §80C/D/CCD(1B), HRA, §87A rebate, surcharge, cess. It does NOT handle: capital gains (separate slab), agricultural income aggregation, AMT/MAT for high-deduction old-regime cases, employer-side calculation differences, or relief under §89/90/91. Use the output for planning regime choice and quarterly advance tax; let the ITR utility do the final filing math.