Income Tax Calculator (FY 2026-27)
Compare your tax liability under the New Regime and Old Regime side by side.
New Regime
| Gross Income | |
| Standard Deduction | |
| Taxable Income | |
| Slab Tax | |
| Sec 87A Rebate | |
| Marginal Relief | |
| Tax After Rebate | |
| Surcharge | |
| Health & Education Cess (4%) | |
| Total Tax |
Slab-wise Breakdown
Old Regime
| Gross Income | |
| Standard Deduction | |
| Deductions (80C etc.) | |
| Taxable Income | |
| Slab Tax | |
| Sec 87A Rebate | |
| Tax After Rebate | |
| Surcharge | |
| Health & Education Cess (4%) | |
| Total Tax |
Slab-wise Breakdown
Use this income tax calculator India tool to estimate your exact tax liability for FY 2026-27 under both regimes before you decide how to structure deductions like HRA or Section 80C.
Income Tax in India: Complete Guide
Income tax is a direct tax levied by the Government of India on the income earned by individuals, HUFs, companies, and other entities during a financial year (April 1 to March 31). For salaried individuals, understanding the tax structure helps optimize savings through legitimate deductions and choose the right tax regime, potentially saving lakhs annually.
India currently offers two tax regimes: the Old Regime (with deductions and exemptions) and the New Regime (lower slab rates but fewer deductions). From FY 2023-24, the new regime is the default, but taxpayers can opt for the old regime if beneficial.
Income Tax Slabs FY 2026-27
| Income Slab | New Regime Rate | Old Regime Rate |
|---|---|---|
| Up to ₹4,00,000 | Nil | Nil (up to ₹2.5L) / 5% (2.5-5L) |
| ₹4,00,001 – ₹8,00,000 | 5% | 5% / 20% |
| ₹8,00,001 – ₹12,00,000 | 10% | 20% |
| ₹12,00,001 – ₹16,00,000 | 15% | 20% / 30% |
| ₹16,00,001 – ₹20,00,000 | 20% | 30% |
| ₹20,00,001 – ₹24,00,000 | 25% | 30% |
| Above ₹24,00,000 | 30% | 30% |
*New regime: Income up to ₹12 lakh effectively tax-free due to Section 87A rebate (₹60,000 rebate). Standard deduction of ₹75,000 available.
Popular Tax-Saving Deductions (Old Regime)
| Section | Deduction | Max Limit |
|---|---|---|
| 80C | PPF, ELSS, EPF, Life Insurance, NSC, SSY | ₹1,50,000 |
| 80CCD(1B) | NPS additional contribution | ₹50,000 |
| 80D | Health insurance premium | ₹25,000 (self) + ₹25,000-₹50,000 (parents) |
| 24(b) | Home loan interest | ₹2,00,000 |
| 80E | Education loan interest | No limit (8 years) |
| 80G | Donations to approved charities | 50-100% of donation |
| 10(13A) | HRA exemption | Based on formula |
| 80TTA/80TTB | Savings account interest | ₹10,000 / ₹50,000 (seniors) |
Tax Saving Example
Salary: ₹15 lakh. Without deductions (new regime): tax is approximately ₹1,30,000. With full deductions (old regime): 80C (₹1.5L) + NPS (₹50K) + 80D (₹50K) + HRA (₹2.4L) + standard deduction (₹50K) = ₹5.4 lakh deductions. Taxable income drops to ₹9.6 lakh. Tax = approximately ₹67,600, saving ₹62,400 per year by using the old regime with proper planning.
Which tax regime should I choose?
Use the income tax calculator India above to test both scenarios. Choose the old regime if your total deductions and exemptions exceed ₹3.75-4 lakh (realistic if you pay rent, have home loan, and invest in tax-saving instruments). Choose the new regime if you have minimal deductions, are a freelancer without HRA, or prefer simplicity. You can compare both regimes using this calculator. The break-even depends on your specific income level and available deductions.
How do I save tax if I earn above ₹15 lakh?
At higher incomes, maximize all available deductions: full ₹1.5L in 80C (prefer ELSS for equity exposure), ₹50K in NPS (80CCD1B), health insurance for family and parents (₹50K-₹1L), home loan interest (₹2L), claim full HRA if paying rent, and consider leave encashment and LTA. Salary restructuring (food coupons, car lease, NPS employer contribution) can further reduce taxable income by ₹1-2 lakh.
Is income up to ₹12 lakh really tax-free?
Check this exact scenario in the income tax calculator India tool above. Under the new tax regime for FY 2026-27, total income up to ₹12 lakh (₹12.75 lakh for salaried with standard deduction) is effectively tax-free due to the Section 87A rebate of ₹60,000 which eliminates the entire tax liability. However, this rebate is not available if your income exceeds ₹12 lakh even by ₹1, making it a sharp cliff rather than a gradual phase-out. If your income is slightly above ₹12 lakh, consider additional NPS contribution to bring it below the threshold.
Do I need to file ITR if my income is below taxable limit?
While not legally mandatory if income is below the basic exemption limit, filing ITR is strongly recommended because: it serves as income proof for loans and visa applications, enables carrying forward of losses for future set-off, is required for claiming refund of TDS deducted, and is mandatory if you have foreign assets, hold directorship, or deposited ₹1 crore+ in bank. The process is simple and free through the income tax portal.
How to Use the Income Tax Calculator
Run your numbers through this income tax calculator India tool, then compare with our take-home salary calculator to see your final in-hand pay.
Our income tax calculator helps you estimate your tax liability for the financial year 2026-27 (assessment year 2027-28). Enter your gross annual income, select your age category (below 60, 60-80, or above 80), add your deductions under various sections (80C, 80D, 80E, 80G, Section 24, HRA, etc.), and the calculator computes your tax under both the Old and New Tax Regimes side by side. So you can instantly see which regime saves you more.
New vs Old Tax Regime FY 2026-27: Key Differences
Slabs are unchanged from the previous year and both regimes add 4% health and education cess (see the slab table above for FY 2026-27, assessment year 2027-28).
Key differences. The new regime gives a ₹75,000 standard deduction and a Section 87A rebate of up to ₹60,000, so taxable income up to ₹12 lakh pays no tax (about ₹12.75 lakh of salary). The old regime gives a ₹50,000 standard deduction and a rebate of up to ₹12,500 for taxable income up to ₹5 lakh, but allows Section 80C, 80D, HRA, home loan interest and other deductions. Employer NPS contribution under 80CCD(2) is allowed in both.
Which Tax Regime Is Better? Worked Example at ₹15 Lakh
Take a salaried employee in a metro earning ₹15 lakh a year, with ₹1.5 lakh in 80C, ₹50,000 in NPS (80CCD(1B)), ₹25,000 in 80D and ₹2.4 lakh of HRA exemption.
| New regime | Old regime | |
|---|---|---|
| Gross income | ₹15,00,000 | ₹15,00,000 |
| Standard deduction | ₹75,000 | ₹50,000 |
| Other deductions | None | ₹4,65,000 |
| Taxable income | ₹14,25,000 | ₹9,85,000 |
| Tax plus 4% cess | ₹97,500 | ₹1,13,880 |
The new regime wins here by about ₹16,000, even with generous deductions. As a rule of thumb at ₹15 lakh, the old regime only comes out ahead when total deductions, including the standard deduction, cross roughly ₹5.9 lakh. Below ₹12.75 lakh of salary, the new regime is almost always the better choice because the tax is nil. Enter your own numbers in the calculator above to see where you land.
Common Tax-Saving Mistakes to Avoid
Many taxpayers leave money on the table by not optimising their tax planning. The biggest mistake is last-minute investing in March: this often leads to poor investment choices made purely for tax saving rather than genuine wealth building. Start your ELSS SIP in April to spread investments across 12 months and benefit from rupee cost averaging.
Another common error is not claiming all eligible deductions. Many employees forget to claim deductions for preventive health checkups (₹5,000 under 80D), education loan interest (80E, no upper limit), donations to charitable institutions (80G), and house rent for non-HRA employees (80GG). Parents of disabled dependents miss the 80DD deduction (₹75,000-₹1,25,000), and those with home loans sometimes don’t claim the additional ₹1.5 lakh deduction under Section 80EEA for affordable housing.
Tax Planning Calendar for Salaried Employees
Effective tax planning is a year-round activity. In April-May, declare your investments and rent details to your employer for TDS calculation, and start SIPs in ELSS funds and PPF contributions. In July-August, file your ITR for the previous year and review your investment plan. In November-December, submit investment proofs and rent receipts to your employer. In January-March, complete any pending investments for 80C, renew health insurance for 80D, and make final NPS contributions for the additional 80CCD(1B) deduction of ₹50,000.
Reviewed by: MoneyPundit Team | Last updated: July 2, 2026
Data source: Income Tax Department (incometax.gov.in), current slab rates for FY 2026-27.
Methodology: Computes tax liability under both the old and new tax regimes using current official slab rates, so you can compare and pick the lower-tax option.