New regime (FY 2026-27) ✓ lower tax
Taxable ₹14,25,000 · tax ₹93,750 · cess ₹3,750 · effective 6.5%
Old regime (FY 2026-27)
Taxable ₹13,00,000 · tax ₹2,02,500 · cess ₹8,100 · effective 14.0%
The new regime saves you ₹1,13,100 this year at these inputs.
FY 2026-27 (AY 2027-28) rates. New regime: ₹75,000 standard deduction, Section 87A rebate makes income up to ₹12 lakh taxable (₹12.75 lakh gross for salaried) tax-free, with marginal relief just above. Old regime: ₹50,000 standard deduction plus whatever 80C/80D/HRA/home-loan deductions you enter. Both include 4% health & education cess and surcharge above ₹50 lakh (surcharge marginal relief near thresholds not modeled). Not tax advice - verify with the income tax portal or a CA before filing.
Income Tax Calculator for FY 2026-27: New vs Old Regime
The Tools Kit’s free Income Tax Calculator India works out the income tax on your salary under both the new and the old tax regime for FY 2026-27 (AY 2027-28), side by side. Enter your annual gross salary and, for the old regime, the total of your deductions, and it applies the standard deduction, the slab rates, the Section 87A rebate, surcharge and 4% cess to show the total tax, monthly take-home and effective rate for each regime, with the cheaper one highlighted.
It answers the question every salaried taxpayer faces at the start of the year: which regime to declare to your employer. On the default figures of a ₹15 lakh salary with ₹1.5 lakh of deductions, the new regime costs ₹97,500 and the old regime ₹2,10,600. Everything is calculated in your browser, so your salary is never sent anywhere.
How to Use the Income Tax Calculator
- 1
Enter your annual gross salary
Type your yearly gross salary in rupees; commas such as 15,00,000 are fine. The standard deduction is applied automatically: ₹75,000 in the new regime and ₹50,000 in the old regime.
- 2
Add your old-regime deductions
Enter one total for everything you can claim beyond the standard deduction, such as 80C investments, 80D health insurance, HRA exemption and home-loan interest. The new regime ignores this field by design.
- 3
Compare the two regime cards
Each card shows total tax, monthly take-home, taxable income, base tax, surcharge (if any), 4% cess and the effective tax rate. The regime with the lower tax is highlighted.
- 4
Read the saving
The line below the cards states how much the cheaper regime saves you for FY 2026-27 at the figures you entered.
Not sure what your gross salary is? If you only have a CTC figure from an offer letter, the CTC to in-hand calculator takes out EPF, professional tax and new-regime income tax to show your monthly in-hand pay.
Income Tax Slabs for FY 2026-27 (AY 2027-28)
Budget 2026 kept the new regime slabs introduced in Budget 2025, and the old regime slabs are unchanged. The rates apply to taxable income, band by band, so only the part of your income inside each band is taxed at that band’s rate.
| Taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 to ₹8,00,000 | 5% |
| ₹8,00,001 to ₹12,00,000 | 10% |
| ₹12,00,001 to ₹16,00,000 | 15% |
| ₹16,00,001 to ₹20,00,000 | 20% |
| ₹20,00,001 to ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
| Taxable income | Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
On top of the slab tax, surcharge applies above ₹50 lakh of taxable income (10%), ₹1 crore (15%) and ₹2 crore (25%); above ₹5 crore it stays at 25% in the new regime but rises to 37% in the old one. A 4% health and education cess is then added to the tax plus surcharge in both regimes.
Worked Example: Tax on a ₹15 Lakh Salary
New regime: ₹15,00,000 minus the ₹75,000 standard deduction leaves ₹14,25,000 taxable. The first ₹4 lakh is nil, ₹4-8 lakh at 5% is ₹20,000, ₹8-12 lakh at 10% is ₹40,000, and the remaining ₹2,25,000 at 15% is ₹33,750, for ₹93,750 of slab tax. Taxable income is above ₹12 lakh, so there is no 87A rebate. Adding 4% cess of ₹3,750 gives a total of ₹97,500, a 6.5% effective rate and ₹1,16,875 a month after tax.
Old regime with ₹1.5 lakh of deductions: ₹15,00,000 minus ₹50,000 standard deduction and ₹1,50,000 of other deductions leaves ₹13,00,000 taxable. Slab tax is ₹12,500 (5% of ₹2.5-5 lakh) plus ₹1,00,000 (20% of ₹5-10 lakh) plus ₹90,000 (30% of the ₹3 lakh above ₹10 lakh), or ₹2,02,500. With ₹8,100 cess the total is ₹2,10,600, so the new regime saves ₹1,13,100.
To check a percentage like the effective rate yourself, divide the tax by the gross salary; the percentage calculator does the arithmetic if you want to compare several salaries.
The ₹12 Lakh Rebate and Marginal Relief
Under the new regime, the Section 87A rebate of up to ₹60,000 wipes out the tax when taxable income is ₹12 lakh or less. Because salaried taxpayers also get the ₹75,000 standard deduction, a gross salary of up to ₹12.75 lakh pays no income tax at all.
Just above the limit, marginal relief stops a tax cliff: the tax cannot exceed the income earned above ₹12 lakh. A ₹13 lakh salary has ₹12.25 lakh taxable, so instead of the ₹63,750 the slabs would produce, the tax is capped at ₹25,000, plus ₹1,000 cess, for ₹26,000 in total. The calculator applies this automatically. In the old regime the rebate is smaller, up to ₹12,500, and only applies when taxable income is ₹5 lakh or less, with no marginal relief.
When Does the Old Regime Save More Tax?
The old regime only wins when your deductions are large enough to outweigh its higher slab rates, and the amount needed grows with income. Running FY 2026-27 figures through the calculator, the old regime needs roughly these deductions beyond the ₹50,000 standard deduction just to match the new regime:
- ₹10 lakh salary: about ₹4.5 lakh (the new regime tax is zero here)
- ₹15 lakh salary: about ₹5.44 lakh
- ₹20 lakh salary: about ₹7.09 lakh
The usual building blocks are up to ₹1.5 lakh under 80C (EPF, PPF, ELSS mutual funds, life insurance), health insurance premiums under 80D, the HRA exemption, and up to ₹2 lakh of interest on a self-occupied home loan. If you are weighing a home loan, the EMI calculator shows the monthly EMI and the total interest over the loan, and if you invest in ELSS through a SIP, the SIP calculator projects what those contributions grow to. Enter your combined total in the deductions field to see the real comparison at your salary.
What the Calculator Does Not Cover
It calculates tax on salary income for one year, FY 2026-27. It does not model capital gains, business or rental income, the higher old-regime exemption for senior citizens, or surcharge marginal relief near ₹50 lakh, ₹1 crore and ₹2 crore. The monthly take-home is gross salary minus income tax, divided by 12; employee EPF and professional tax are not deducted, so your actual in-hand pay will be slightly lower. Treat the result as an estimate and confirm your liability on the income tax portal or with a CA before filing.
Common uses
- Choosing which regime to declare to your employer at the start of the financial year
- Checking whether extra 80C or 80D investments are worth it under the old regime
- Estimating monthly take-home after tax for a new job offer or salary hike
- Seeing how close a salary near ₹12.75 lakh is to paying zero tax
- Planning advance tax or checking whether your employer’s TDS looks right
Salary tax is only part of the picture. For the tax on what you buy, the GST calculator for India adds or removes GST with the CGST/SGST split, and the inflation calculator shows how purchasing power changes between years (it uses US CPI data). You can find more money tools among the calculator tools.
Income tax terms explained
| Term | What it means here |
|---|---|
| Gross salary | Your total annual salary before income tax; the figure you type into the calculator |
| Standard deduction | A flat deduction for salaried taxpayers: ₹75,000 in the new regime, ₹50,000 in the old regime, applied automatically |
| Taxable income | Gross salary minus the standard deduction (and, in the old regime, the other deductions you enter); the slabs apply to this figure |
| Section 87A rebate | A rebate that cancels the tax on low incomes: up to ₹60,000 when new-regime taxable income is ₹12 lakh or less, up to ₹12,500 when old-regime taxable income is ₹5 lakh or less |
| Marginal relief | In the new regime, tax just above ₹12 lakh taxable is capped at the income above ₹12 lakh, so earning slightly more never leaves you worse off |
| Surcharge | An extra percentage of the tax for high incomes: 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore (37% above ₹5 crore in the old regime only) |
| Health and education cess | A 4% levy on the tax plus surcharge, added in both regimes |
| FY and AY | The financial year is when you earn the income (FY 2026-27: April 2026 to March 2027); the assessment year is the following year, when it is assessed (AY 2027-28) |
| Effective tax rate | Total tax as a percentage of gross salary, shown on each regime card |
Frequently Asked Questions
Subtract the standard deduction (₹75,000 new regime, ₹50,000 old regime, plus your other deductions in the old regime) to get taxable income, apply the slab rates band by band, subtract the Section 87A rebate if you qualify, add surcharge if taxable income is above ₹50 lakh, and add 4% health and education cess. The calculator runs these steps for both regimes at once.
Up to ₹4 lakh is nil, ₹4-8 lakh is 5%, ₹8-12 lakh is 10%, ₹12-16 lakh is 15%, ₹16-20 lakh is 20%, ₹20-24 lakh is 25%, and above ₹24 lakh is 30%. These are the Budget 2025 slabs that Budget 2026 kept for FY 2026-27 (AY 2027-28), and they apply to taxable income after the ₹75,000 standard deduction.
Up to ₹2.5 lakh is nil, ₹2.5-5 lakh is 5%, ₹5-10 lakh is 20%, and above ₹10 lakh is 30%. The calculator uses these slabs for individuals below 60; the higher basic exemption for senior and super senior citizens under the old regime is not modeled.
Yes. The Section 87A rebate of up to ₹60,000 cancels the tax when new-regime taxable income is ₹12 lakh or less. For a salaried person the ₹75,000 standard deduction stretches that to ₹12.75 lakh of gross salary, so a ₹12.75 lakh salary pays zero income tax.
Under the new regime, ₹26,000 for FY 2026-27. Taxable income is ₹12.25 lakh, and marginal relief caps the tax at the ₹25,000 earned above ₹12 lakh, plus ₹1,000 cess. Under the old regime with no deductions beyond the standard ₹50,000, the tax is ₹1,95,000.
Under the new regime, ₹97,500: taxable income of ₹14.25 lakh gives ₹93,750 of slab tax plus ₹3,750 cess. Under the old regime with ₹1.5 lakh of deductions beyond the standard deduction, the tax is ₹2,10,600, so the new regime saves ₹1,13,100 at those inputs.
Whichever gives the lower total tax at your salary and deductions. The new regime has lower rates and a bigger standard deduction but allows almost no other deductions; the old regime has higher rates but lets you claim 80C, 80D, HRA and home-loan interest. Enter your real figures and the calculator highlights the cheaper one.
More than most people expect, and it rises with income. On FY 2026-27 figures, the old regime only matches the new regime with about ₹4.5 lakh of deductions beyond the standard deduction at a ₹10 lakh salary, about ₹5.44 lakh at ₹15 lakh, and about ₹7.09 lakh at ₹20 lakh.
Yes. It adds surcharge at 10% above ₹50 lakh, 15% above ₹1 crore and 25% above ₹2 crore of taxable income (37% above ₹5 crore in the old regime only), then 4% health and education cess on tax plus surcharge. Marginal relief near the surcharge thresholds is not modeled, so results just above those limits may be slightly high.
It is your gross salary minus income tax, divided by 12. It does not subtract employee EPF, professional tax or other payroll deductions, so your actual in-hand pay will usually be a little lower.
No. It calculates tax on salary income only. Capital gains, business or professional income, rental income and special-rate income are out of scope, as are age-based old-regime exemptions, so verify your final liability on the income tax portal or with a CA before filing.
No. The calculation runs entirely in your browser with JavaScript. Your salary and deduction figures are not sent to a server or saved, and there is no signup.
Reviewed by Raja Jahangir · Last reviewed: October 2026
Which is better, the new or old tax regime in India?
The new regime has lower slab rates and a larger standard deduction but allows almost no other deductions, while the old regime keeps higher rates but lets you claim 80C, 80D, HRA, and home-loan interest. Whichever gives the lower total tax, including surcharge and 4% cess, is better for you, and that depends on how much you can deduct.
How much deduction makes the old regime worthwhile?
The old regime only wins when your claimable deductions beyond the standard deduction are large enough to offset its higher slab rates. Entering your salary and total 80C, 80D, HRA, and home-loan deductions shows the tax under both regimes side by side; the break-even amount rises with income, so higher earners need more deductions.
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