Income Tax Calculator 2026-27

The Old regime allows deductions under 80C, 80D, HRA, home loan interest, etc., but has higher tax rates. The New regime has lower slab rates but no deductions. If your total deductions exceed ₹3.75 lakh, the Old regime usually saves more tax; otherwise the New regime is better.

Taxpayers with income up to ₹12 lakh pay zero tax under the New regime due to the rebate under Section 87A. Those with minimal deductions (less than ₹3.75 lakh) generally benefit more from the New regime. Use the calculator above to compare both instantly.

Section 80C deductions (up to ₹1.5 lakh) include: EPF/PF contributions, PPF deposits, ELSS mutual funds, life insurance premiums, NSC, 5-year tax-saving FD, home loan principal repayment, tuition fees for children, and Sukanya Samriddhi Yojana.

Under the New regime for FY 2026-27: ₹0–4 lakh = Nil, ₹4–8 lakh = 5%, ₹8–12 lakh = 10%, ₹12–16 lakh = 15%, ₹16–20 lakh = 20%, ₹20–24 lakh = 25%, above ₹24 lakh = 30%. Income up to ₹12 lakh is effectively tax-free due to the rebate under Section 87A.

The standard deduction is ₹75,000 for salaried employees under the New tax regime for FY 2026-27 (increased from ₹50,000). Under the Old regime, it remains ₹50,000.

Income tax is calculated on your total taxable income after deductions. The net income is applied to the applicable tax slabs (New or Old regime), then surcharge and health & education cess (4%) are added. A rebate under Section 87A is available if income is within the threshold.

Under the New tax regime, individuals with taxable income up to ₹12 lakh get a full rebate under Section 87A, making their effective tax zero. Under the Old regime, the rebate is ₹12,500 for income up to ₹5 lakh.