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Income Tax Calculator 2026-27

Enter your income and deductions to estimate your tax for FY 2026-27 (AY 2027-28). The result shows both regimes side by side, including the section 87A rebate and marginal relief, so you can see which one actually suits you.

Last updated

FY 2026-27 (AY 2027-28)
Income

₹15 Lakh · Gross salary before any deduction, as shown in your Form 16 Part B.

Bank interest, rent, freelance income. Not capital gains, which are taxed separately.

Affects the basic exemption limit under the old regime only.

Are you salaried or drawing a pension?

The standard deduction applies only to salary and pension income.

Deductions

These reduce your tax only under the old regime. Employer NPS contribution under section 80CCD(2) is the one deduction that works under both.

₹1.5 Lakh · EPF, PPF, ELSS, life insurance, home loan principal, tuition fees. Capped at ₹1,50,000.

₹25K

Additional ₹50,000 over and above 80C.

Use the HRA limbs described below, or leave 0 if you do not pay rent.

Capped at ₹2,00,000 for a self-occupied property.

Allowed under both regimes.

The result updates as you type. Nothing you enter is saved, sent to a server or shared.

Lower tax — new regime

₹97,500

You would pay ₹1,05,300 more under the old regime.

New regime

Taxable income
₹14,25,000
Tax before rebate
₹93,750
Health & education cess (4%)
₹3,750
Total tax
₹97,500
Per month
₹8,125

Old regime

Total deductions allowed
₹2,25,000
Taxable income
₹12,75,000
Tax before rebate
₹1,95,000
Health & education cess (4%)
₹7,800
Total tax
₹2,02,800
Per month
₹16,900

Effective rate on gross income

New regime
6.5%
Old regime
13.52%
  • Under the new regime, deductions such as 80C, 80D, 80CCD(1B) and HRA exemption are not available, so they have been ignored.
  • A standard deduction of ₹75,000 has been applied to salary income.
  • A standard deduction of ₹50,000 has been applied to salary income.

Slab-by-slab tax under the new regime

Slab-by-slab tax under the new regime
Income slabRateIncome in this slabTax
₹4,00,000 – ₹8,00,0005%₹4,00,000₹20,000
₹8,00,000 – ₹12,00,00010%₹4,00,000₹40,000
₹12,00,000 – ₹16,00,00015%₹2,25,000₹33,750

How this calculator works

India runs two parallel personal tax systems. The new regime is the default: it has wider slabs and lower rates, but almost no deductions. The old regime keeps narrower slabs and higher rates, but lets you subtract a long list of investments, insurance premiums, rent and loan interest. Neither is universally better, which is why this calculator always computes both.

The calculation runs in a fixed order. Start with gross income. Subtract the standard deduction if you draw salary or pension. Under the old regime, subtract whatever Chapter VI-A deductions you are entitled to. What remains is taxable income, and tax is charged on it slab by slab — the rate for each band applies only to the income falling inside that band, never to your whole income.

Two adjustments then apply. The section 87A rebate wipes out the tax entirely for smaller incomes, and marginal relief prevents the cliff edge that would otherwise appear just above the rebate threshold: without it, earning one rupee more than the limit could cost tens of thousands in tax. Finally, a surcharge applies to very high incomes, and a 4% health and education cess is added on top of tax plus surcharge.

A practical point: under the new regime the ₹12 lakh rebate limit applies to taxable income, not gross salary. With the ₹75,000 standard deduction, a salaried person can have gross salary above that figure and still pay nothing.

The formula

The order of calculation

Taxable income = gross income − standard deduction − allowed deductions Tax = slab tax − section 87A rebate + surcharge + 4% cess

Slab tax
Each band’s rate applied only to the income inside that band
87A rebate
Cancels tax entirely below the threshold, with marginal relief just above it
Surcharge
An extra percentage of the tax itself, on high incomes only
Cess
4% of (tax + surcharge), funding health and education

HRA exemption — section 10(13A), old regime only

Exemption = lowest of: (a) HRA actually received (b) rent paid − 10% of (basic + DA) (c) 50% of (basic + DA) in Delhi, Mumbai, Kolkata or Chennai; 40% elsewhere

Only those four cities count as metro for this purpose. Bengaluru, Hyderabad and Pune are treated as non-metro at 40%, which surprises people every year.

Worked example: ₹15 lakh salary, FY 2026-27 (AY 2027-28)

Kavita earns ₹15,00,000 in salary. She has ₹1,50,000 in section 80C, ₹25,000 of health insurance under 80D, and pays no rent.

Step-by-step calculation for the worked example
Gross salary₹15,00,000
New regime — standard deduction₹75,000
New regime — taxable income₹14,25,000
New regime — tax before cess₹1,23,750
New regime — total tax with 4% cess₹1,28,700
Old regime — deductions (₹50,000 + ₹1,50,000 + ₹25,000)₹2,25,000
Old regime — taxable income₹12,75,000
Old regime — tax before cess₹1,95,000
Old regime — total tax with 4% cess₹2,02,800

The new regime saves Kavita about ₹74,100 despite giving up every deduction, because its slabs are much wider. For the old regime to win at this income she would need substantially more to claim — typically a large HRA exemption or home loan interest on top of what she already has.

Things worth knowing

  • This estimates tax on income taxed at slab rates. Capital gains on shares, mutual funds and property are taxed under separate rules and rates and are not covered here.
  • The new regime is the default. If the old regime suits you better you must actively choose it. Salaried taxpayers without business income can switch each year; those with business income face restrictions on switching back.
  • The section 87A rebate is calculated on taxable income after the standard deduction, not on gross salary. This is the single most common misreading of the rebate limit.
  • Surcharge applies to the tax, not the income, and the new regime caps the highest surcharge rate lower than the old regime does. Marginal relief limits the damage just above each surcharge threshold.
  • Choosing a regime is not only about tax. The old regime rewards long-term saving through 80C and NPS; the new regime leaves more cash in hand and lets you decide where it goes. Compare the tax figures, then decide which behaviour you actually want.
  • Rates here reflect FY 2026-27 (AY 2027-28). Verify against the Income Tax Department’s own calculator before filing, and re-check after every Union Budget.

Frequently asked questions

Which regime should I choose?
Compare the two totals above using your real numbers. As a rough guide, the old regime tends to win when your total deductions — 80C, 80D, NPS, HRA and home loan interest together — are large relative to your income. If you rent in a metro on a high basic salary, or you are repaying a home loan, the old regime often stays ahead. Without significant deductions, the new regime usually wins.
Can I switch regimes every year?
If you are salaried and have no income from business or profession, yes — you can choose afresh each assessment year when you file. Taxpayers with business or professional income can opt out of the new regime only once and face restrictions on returning to it, so the decision carries more weight.
Is income up to ₹12 lakh really tax free under the new regime?
Taxable income up to ₹12,00,000 attracts no tax, because the section 87A rebate cancels the liability. For a salaried person the ₹75,000 standard deduction sits on top, so gross salary somewhat above ₹12 lakh can still result in zero tax. Above the threshold, marginal relief ensures the tax never exceeds the amount by which you cross it.
What is marginal relief and why does it matter?
Without it, earning one rupee above the rebate limit would suddenly create a large tax bill, so a small raise could leave you worse off. Marginal relief caps the tax at the amount by which your income exceeds the threshold, smoothing the step into a slope. The same principle applies at each surcharge threshold.
Does the standard deduction apply under the new regime?
Yes. Salaried taxpayers and pensioners get a standard deduction under both regimes for FY 2026-27 (AY 2027-28) — it is simply larger under the new regime. It applies automatically and requires no proof or investment.
Can I claim HRA and my home loan interest at the same time?
It is possible in specific situations — for example, if you own a house in one city and genuinely rent in another for work. Both claims must reflect reality and you must be able to evidence them. Claiming both while living in your own property is not permissible.

Sources

Every figure on this page is traceable to the official source below. If a source has changed since the date shown, please tell us and we will correct it.