Income Tax Calculator India 2026-27
Calculate income tax under old and new regime for FY 2026-27.
- • New Regime: No deductions, standard deduction ₹75,000
- • Old Regime: All deductions applicable
- • Rebate u/s 87A for income ≤ ₹7L (New) / ₹5L (Old)
Enter values and click Calculate to see results
What is Income Tax Calculator India 2026-27?
Income Tax in India is levied by the Central Government on all individual income above the basic exemption limit. India has two tax regimes — the Old Regime (with deductions and exemptions) and the New Regime (lower tax rates but no deductions). From FY 2023-24 onwards, the New Regime has become the default. For FY 2026-27, the New Regime offers enhanced slabs and a higher rebate threshold. The right choice between regimes depends on your deductions — if you have significant HRA, 80C, and home loan deductions, the Old Regime might save more tax.
Formulas
New Tax Regime Slabs FY 2026-27
₹0–4L: 0% · ₹4L–8L: 5% · ₹8L–12L: 10% · ₹12L–16L: 15% · ₹16L–20L: 20% · above ₹20L: 30%Where:
Standard Deduction₹75,000 allowed under New Regime (FY 2026-27)Rebate 87AZero tax for taxable income up to ₹7 lakh (New Regime)Old Tax Regime Slabs FY 2026-27
₹0–2.5L: 0% · ₹2.5L–5L: 5% · ₹5L–10L: 20% · above ₹10L: 30%Where:
Standard Deduction₹50,000 (Old Regime)80CUp to ₹1,50,000 in eligible investments80DHealth insurance premium deductionWorked Example
Annual salary of ₹12,00,000 with ₹1,50,000 in 80C investments (FY 2026-27):
₹12,00,000−₹75,000₹11,25,000≈ ₹1,12,500−₹50,000 − ₹1,50,000 = ₹10,00,000 taxable≈ ₹1,12,500✅ At ₹12 LPA in FY 2026-27, both regimes may result in similar tax. Use this calculator to find your optimal choice.
Tips & Important Notes
- 💡FY 2026-27: New Regime is the default — you must opt out explicitly to use Old Regime.
- 💡If your total deductions (80C + HRA + home loan) exceed ₹3-4 lakhs, Old Regime likely saves more tax.
- 💡New Regime is simpler — no need to maintain investment proofs or submit bills.
- 💡Section 80C: PPF, ELSS, NSC, life insurance, home loan principal, school fees are eligible.
- 💡NPS (National Pension System) gives additional ₹50,000 deduction under Section 80CCD(1B) in Old Regime.
- 💡File ITR even if your tax is zero — it helps with loan applications, visa, and maintains records.
Frequently Asked Questions (FAQs)
For FY 2026-27, it depends on your deductions. If your eligible deductions (HRA + 80C + home loan + 80D etc.) are high (₹3L+), Old Regime likely saves more tax. If you have minimal deductions or prefer simplicity, New Regime is better. New Regime is now the default — you must opt out to use Old Regime.