How to use the income tax calculator
- Enter your annual income and age group.
- Enter your total old regime deductions (80C, 80D, HRA, home loan interest).
- Compare both results side by side.
About this tool
Enter your annual income, age group and old-regime deductions to compare both regimes side by side. The new regime uses the 0 to 4 lakh nil slab, a 75,000 standard deduction and a rebate that makes income up to 12 lakh tax free. The result is an estimate for resident individuals and excludes capital gains.
New regime slabs for FY 2026-27 (tax year 2026-27)
The new regime is the default for resident individuals. The slabs below were unchanged in the Budget 2026, and a 4% health and education cess is added to the tax.
| 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% |
Why income up to ₹12 lakh pays no tax
Under the new regime, Section 87A gives a rebate of up to ₹60,000, which cancels the slab tax on taxable income up to ₹12 lakh. Salaried people and pensioners also get a ₹75,000 standard deduction, so a salary of ₹12.75 lakh has no tax to pay.
Just above the limit there is marginal relief, so your tax can never be more than the income earned over ₹12 lakh. For example, a salary of ₹13,00,000 pays ₹26,000 including cess, not the ₹66,300 the slabs alone would give.
The old regime in short
The old regime has fewer slab steps but allows deductions. Its basic exemption is ₹2.5 lakh (₹3 lakh for ages 60 to 80, ₹5 lakh above 80), then 5% up to ₹5 lakh, 20% up to ₹10 lakh and 30% above that. The standard deduction is ₹50,000 and the rebate applies only if taxable income is ₹5 lakh or less. Common deductions are:
- Section 80C: up to ₹1.5 lakh (PPF, EPF, ELSS, life insurance, tuition fees)
- Section 80D: health insurance premiums
- Section 80CCD(1B): extra ₹50,000 for NPS
- Section 24(b): home loan interest up to ₹2 lakh on a self-occupied house
- HRA exemption, if you pay rent (use the HRA calculator to work it out)
Which regime should you choose?
For most salaried people the new regime now wins unless your total old-regime deductions are large. The table shows the new-regime tax for a salaried person, and how much you would need to deduct in the old regime (on top of the ₹50,000 standard deduction) just to break even:
| Annual salary | New regime tax | Old regime deductions needed to match |
|---|---|---|
| ₹10,00,000 | ₹0 | ₹4,50,000 |
| ₹15,00,000 | ₹97,500 | ₹5,44,000 |
| ₹20,00,000 | ₹1,92,400 | ₹7,09,000 |
| ₹25,00,000 | ₹3,19,800 | ₹8,00,000 |
What this calculator does not include
It assumes a resident individual and covers salary-type income. It leaves out capital gains and other special-rate income, surcharge marginal relief, advance-tax interest, and non-resident or HUF rules. The Income-tax Act, 2025 took effect on 1 April 2026 and renumbered many sections. This page uses the familiar older numbers (80C, 80D, 87A) because they are still widely used, so check the new section numbers when you file. Treat the output as a planning estimate and confirm the final figure with the official income tax e-filing calculator or a chartered accountant before you file.
Frequently asked questions
What are the new regime slabs for FY 2026-27?
Up to ₹4 lakh nil, then 5% to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh, 20% to ₹20 lakh, 25% to ₹24 lakh, and 30% above. The Budget 2026 did not change them.
Is income up to ₹12 lakh really tax free?
Under the new regime, yes, because of the Section 87A rebate. With the ₹75,000 standard deduction, a salary up to ₹12.75 lakh pays no tax. Marginal relief applies just above the limit.
What is not included?
Capital gains, surcharge marginal relief, and non-resident rules. Use this as an estimate and confirm with the official e-filing calculator.
Can I switch between regimes every year?
Salaried individuals without business income can choose the regime each year when they file. Those with business or professional income have limits on switching back to the new regime.
Is the employer NPS contribution deductible in the new regime?
Yes, the employer contribution under Section 80CCD(2) is allowed in the new regime, up to a percentage of salary. Check the current limit that applies to you.
Is HRA exempt in the new regime?
No. HRA exemption, 80C and most other deductions are available only under the old regime.