Income Tax Calculator FY 2026-27 – Old vs New Regime

Enter your income and deductions to compare your tax under the new and old regimes for FY 2026-27 (Tax Year 2026-27). The calculator applies the standard deduction, rebate, surcharge with marginal relief, and 4% cess.

Income tax slabs for FY 2026-27

Budget 2026 did not change the slabs, so FY 2026-27 (AY 2027-28, called Tax Year 2026-27 under the Income-tax Act, 2025) uses the same rates as FY 2025-26.

New tax regime (default)

Taxable income	Rate
Up to ₹4,00,000	Nil
₹4,00,001 – ₹8,00,000	5%
₹8,00,001 – ₹12,00,000	10%
₹12,00,001 – ₹16,00,000	15%
₹16,00,001 – ₹20,00,000	20%
₹20,00,001 – ₹24,00,000	25%
Above ₹24,00,000	30%

Salaried taxpayers get a standard deduction of ₹75,000. A rebate of up to ₹60,000 means no tax up to ₹12 lakh of taxable income (₹12.75 lakh of salary), with marginal relief just above that limit.

Old tax regime

Taxable income	Below 60	60 – 79	80+
Up to ₹2,50,000	Nil	Nil	Nil
₹2,50,001 – ₹3,00,000	5%	Nil	Nil
₹3,00,001 – ₹5,00,000	5%	5%	Nil
₹5,00,001 – ₹10,00,000	20%	20%	20%
Above ₹10,00,000	30%	30%	30%

The standard deduction is ₹50,000 and the rebate makes income up to ₹5 lakh tax-free. You can claim deductions such as 80C, 80D, HRA, home loan interest and NPS.

Surcharge and cess (both regimes)

Surcharge applies above ₹50 lakh (10%), ₹1 crore (15%) and ₹2 crore (25%). The 37% rate above ₹5 crore applies only in the old regime, because the new regime caps surcharge at 25%. A 4% health and education cess is added on tax plus surcharge.

Old or new regime – which is better?

The new regime has lower rates but almost no deductions. The old regime helps only if your deductions are large. As a rough guide, at ₹15–25 lakh of salary you typically need ₹4 lakh or more of deductions (80C, 80D, HRA, home loan interest, NPS) before the old regime wins. The calculator does the exact comparison for your numbers.

Frequently asked questions

Is income up to ₹12 lakh tax-free in FY 2026-27?

Under the new regime, yes: resident individuals with taxable income up to ₹12 lakh pay no tax because of the rebate. For salaried people that means gross salary up to ₹12.75 lakh after the ₹75,000 standard deduction. Income taxed at special rates, such as capital gains, is treated differently.

Can I switch between the old and new regime?

Salaried individuals without business income can choose each year when filing their return. People with business or professional income can switch back to the old regime only once.

What is marginal relief?

It ensures that earning slightly more than a threshold does not raise your tax by more than the extra income. It applies just above the ₹12 lakh rebate limit in the new regime and at each surcharge threshold. This calculator applies both.

Does this calculator include capital gains?

No. Capital gains on shares, mutual funds and property are taxed at special rates and are not included. Add only income taxed at slab rates.

Results are estimates for information only and are not financial, tax or investment advice. Rates and rules change, so confirm figures with your bank, employer or a qualified professional before making decisions.