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Income Tax Calculator

Calculate your exact income tax for FY 2026-27. Compare Old vs New tax regime side-by-side, see slab-wise breakdown, 4% cess, and find out which regime saves you more money.

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Quick answer:India's Income Tax for FY 2026-27 is calculated on taxable income after standard deduction (₹50,000 old regime / ₹75,000 new regime), applied across progressive slabs, plus 4% cess. Under the new regime (default), income up to ₹7 lakh is tax-free via Section 87A rebate. This calculator compares both regimes and shows which saves you more.

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Azam Sharieff· Finance & Tools Reviewer

Last reviewed:

Income Tax Calculator India FY 2026-27 — Old vs New Regime

Every year around March, millions of salaried Indians face the same question: which tax regime should I choose? The Old Tax Regime allows you to claim deductions under sections like 80C, 80D, HRA, and LTA — if you invest heavily in PPF, ELSS, insurance, and home loans, the old regime can significantly reduce your taxable income.

The New Tax Regime (now the default from FY 2024-25 onwards) offers lower slab rates but eliminates most deductions. For taxpayers with minimal investments or those who don't invest in tax-saving instruments, the new regime is almost always better. Use this calculator to compare both in real time and make the right decision for your financial situation.

FY 2026-27 Tax Slabs: Old vs New Regime

Old Regime Tax Slabs: Up to ₹2.5 lakh — Nil. ₹2.5L to ₹5L — 5%. ₹5L to ₹10L — 20%. Above ₹10L — 30%. Standard deduction of ₹50,000 applies. Section 87A rebate makes tax nil for income up to ₹5 lakh.

New Regime Tax Slabs (Default from FY 2024-25): Up to ₹3 lakh — Nil. ₹3L to ₹7L — 5%. ₹7L to ₹10L — 10%. ₹10L to ₹12L — 15%. ₹12L to ₹15L — 20%. Above ₹15L — 30%. Standard deduction of ₹75,000 applies (increased in Budget 2024). Section 87A rebate makes tax nil for income up to ₹7 lakh under the new regime.

4% Health and Education Cess is added on top of the final tax in both regimes.

When Is the Old Regime Better?

The Old Regime becomes advantageous when your total eligible deductions are large enough to reduce your taxable income below what the new regime's lower rates would tax. A general rule of thumb: if your total deductions under the old regime (80C: ₹1.5L + HRA + 80D + home loan interest etc.) exceed approximately ₹3.75 lakh, the old regime might be better.

Use our EMI Calculator to determine your home loan interest deduction and SIP Calculator to plan 80C investments through ELSS mutual funds.

Explore More Free Financial Calculators

This income tax calculator is for educational and planning purposes. The figures assume standard deductions only. Consult a Chartered Accountant for your official ITR filing, especially if you have business income, capital gains, or multiple income sources.

Also explore our Salary Calculator for CTC to in-hand breakdown, SIP Calculator for 80C investment planning, and all free financial calculators on ToolsDock.

Frequently Asked Questions

Which tax regime is better for me — old or new?

It depends on your total eligible deductions. If you claim heavy deductions under 80C (PPF, ELSS), HRA, home loan interest, and medical insurance (80D), the old regime may save more. If you have minimal deductions, the new regime's lower slabs are almost always better. This calculator shows you the exact difference.

Is the new tax regime compulsory from FY 2024-25?

The new regime is now the default, but it is not compulsory. Salaried individuals can choose the old regime every year by informing their employer before April 1. The choice can be changed annually.

What is the Section 87A tax rebate?

Section 87A provides a full rebate on income tax if your net taxable income does not exceed ₹5 lakh (old regime) or ₹7 lakh (new regime). This means zero tax is payable even if your income falls in a taxable slab, up to these limits.

What is the standard deduction in FY 2026-27?

The standard deduction is ₹50,000 under the old regime and ₹75,000 under the new regime. It was increased to ₹75,000 for the new regime in Budget 2024 to make the new regime more attractive for salaried employees.

Is the 4% cess included in this calculator?

Yes. The 4% Health and Education Cess is automatically added to the base tax in both regimes. It applies on the total income tax before any rebate but after surcharge, on incomes above ₹50 lakh.

Can I switch between old and new regime every year?

Yes, salaried individuals with only salary income can switch between the regimes every financial year. However, individuals with business or professional income can switch back to the old regime only once.

What deductions can I claim under the old tax regime?

Major deductions include: 80C (up to ₹1.5 lakh for PPF, ELSS, life insurance, home loan principal), 80D (medical insurance premiums), HRA (for rent paid), LTA (leave travel allowance), home loan interest under Section 24(b), and NPS contribution under 80CCD.

Does the new regime allow any deductions?

The new regime allows very few deductions: the ₹75,000 standard deduction for salaried employees, employer's NPS contribution under 80CCD(2), and Agniveer Corpus Fund deduction. Most other deductions like 80C, HRA, and 80D are not available.

How is income tax calculated step by step?

Step 1: Calculate gross income. Step 2: Subtract standard deduction (₹50,000 old / ₹75,000 new). Step 3: Apply applicable tax slabs to get base tax. Step 4: Check Section 87A rebate eligibility. Step 5: Add 4% Health and Education Cess on final tax.

Is this calculator valid for self-employed or business income?

This calculator is optimized for salaried income. Self-employed individuals, freelancers, and business owners have additional considerations (presumptive taxation under 44AD, business expenses, depreciation) that require consultation with a CA or tax professional.