FY 2026-27 (AY 2027-28) · slabs unchanged by Budget 2026 · new & old regime
Income Tax Calculator FY 2026-27
Your exact income tax under both regimes in seconds — with the ₹12L zero-tax rebate, marginal relief, surcharge and cess all built in, and the cheaper regime picked for you.
Income type
Salaried gets the standard deduction: ₹75,000 (new) / ₹50,000 (old).
Your age
Seniors get a higher exemption in the old regime (₹3L / ₹5L).
Your income tax for FY 2026-27 (new regime)
₹0
The new regime saves you ₹1,17,000 vs the old regime this year — about ₹0/month of tax on ₹12 L income.
How the new regime tax is calculated — taxable income ₹11,25,000
Tax (new regime)
₹0
Per month
₹0
Effective rate
0.0%
You save vs other regime
₹1,17,000
The ₹12.75 lakh zero-tax line
A salaried person with gross salary up to ₹12,75,000 pays zero tax in the new regime: the ₹75,000 standard deduction brings taxable income to ₹12L, and the Section 87A rebate (up to ₹60,000) wipes the tax to nil. Just above it, marginal relief keeps the cliff gentle — at ₹13L salary you pay only about ₹26,000, not the ₹66,300 the slabs alone would charge.
Estimates for FY 2026-27 (AY 2027-28) — slabs unchanged from FY 2025-26 by Budget 2026, so the same numbers hold for both years. The old-regime comparison starts with a full ₹1.5L of 80C pre-filled (EPF + insurance typically get close) — open the deductions panel to set your real figures. Assumes resident individual, slab-rate income only (capital gains, crypto and other special-rate income are taxed separately and get no 87A rebate — see our capital gains tool). Old-regime deduction caps applied automatically (80C ₹1.5L, 80D ₹25,000, 24(b) ₹2L, 80CCD(1B) ₹50k). Employer NPS under 80CCD(2) is deductible in both regimes within salary limits (14% of basic in the new regime). Surcharge above ₹50L (capped at 25% in the new regime) and 4% cess included, with marginal relief. TDS, advance tax and professional tax not shown. Confirm with the official calculator at incometax.gov.in. General information, not tax advice.
How income tax works in FY 2026-27
India taxes you under one of two parallel systems, and you pick each year. The new regime (the default) has seven slabs — nil up to ₹4L, then 5%, 10%, 15%, 20%, 25% and 30% in ₹4L steps up to ₹24L — a ₹75,000 standard deduction for salaried people, and the headline feature: a Section 87A rebate that zeroes the tax on taxable income up to ₹12 lakh. The old regime keeps the familiar 5/20/30% slabs from ₹2.5L and rebates only to ₹5L, but lets you deduct 80C, 80D, HRA, home-loan interest and more. Budget 2026 changed none of the slabs, so FY 2026-27 numbers are identical to FY 2025-26 — what did change is the law itself: from 1 April 2026 the rewritten Income-tax Act, 2025 governs, replacing the 1961 Act.
This calculator computes both regimes simultaneously as you type, applies every layer — slabs, rebate, marginal relief, surcharge, cess — and tells you which regime is cheaper and by exactly how much. The government's own calculator makes you compute your taxable income first; here you just enter your salary.
Zero tax up to ₹12.75 lakh — and the marginal-relief safety net
The number that changed everything: a salaried person grossing ₹12.75L pays nothing— ₹75,000 standard deduction brings taxable income to ₹12L, and the ₹60,000 rebate clears the rest. The natural fear is the cliff: what if you earn ₹12.1L? That's where marginal reliefsteps in — your tax is capped at the amount you earn above ₹12L. At ₹12.1L taxable you owe ₹10,400 (with cess), not ₹63,960. The relief tapers away by ₹12,70,588, where normal slab maths resumes. Many online calculators skip this rule and frighten people with the wrong number; this one applies it automatically and shows you when it's active.
Old regime: when deductions still beat low rates
The old regime survives for one kind of taxpayer: the heavy deduction-claimer. Max out 80C (₹1.5L), add 80D health premiums, a ₹2L home-loan interest deduction, ₹50k extra NPS and a substantial HRA exemption, and your old-regime taxable income can drop far enough to undercut the new regime's low rates. As a rule of thumb, above ₹15L income you need roughly ₹4.5–5.5L of total deductions for the old regime to win — rare without both a home loan and high rent. Enter your real deductions in the panel above and the winner updates live; for the exact break-even, use our old-vs-new regime tool.
Above ₹50 lakh: surcharge quietly raises your rate
Cross ₹50L of income and a surcharge on the tax itself kicks in: 10% above ₹50L, 15% above ₹1Cr, 25% above ₹2Cr — and in the old regime, 37% above ₹5Cr, while the new regime caps it at 25%(one more reason high earners default to it). Marginal relief applies at each threshold too, so earning ₹1 above ₹50L can't cost you lakhs. Then 4% health-and-education cess is added to everything. This calculator layers all of it correctly — most free calculators simply ignore surcharge and understate tax for high earners.
What this calculator deliberately keeps separate
Capital gains from shares, mutual funds, property and crypto are taxed at their own special rates — 12.5% LTCG, 20% STCG on equity, 30% flat on crypto — and don't get the 87A rebate, even if your salary is under ₹12L. Estimate those with the capital gains calculator. And if what you really want is your monthly in-hand after PF and professional tax, the CTC to in-hand calculator starts from your CTC and ends at your bank credit. This page answers the core question — how much income tax do I owe this year, and under which regime.
Worked example: ₹15 lakh salary, both regimes
New regime. ₹15,00,000 salary − ₹75,000 standard deduction = ₹14,25,000 taxable. Slab tax: ₹20,000 (4–8L @5%) + ₹40,000 (8–12L @10%) + ₹33,750 (12–14.25L @15%) = ₹93,750. Add 4% cess → ₹97,500.
Old regime, with typical deductions. Say you claim the full ₹1.5L under 80C and ₹25,000 of 80D: ₹15,00,000 − ₹50,000 standard deduction − ₹1,75,000 = ₹12,75,000 taxable. Tax: ₹12,500 + ₹1,00,000 + 30% × ₹2,75,000 = ₹1,95,000. With cess → ₹2,02,800.
Verdict: the new regime saves ₹1,05,300— even against ₹1.75L of old-regime deductions. To flip the result at this salary you'd need over ₹5L of deductions (think full 80C + ₹2L home-loan interest + large HRA + NPS). That's exactly what the deductions panel above lets you test with your own numbers — and the same figures match ClearTax's published FY 2026-27 tables to the rupee.
Frequently asked questions
How do I calculate income tax on salary for FY 2026-27?
Start with gross salary, subtract the ₹75,000 standard deduction (new regime), and apply the slabs to the result: nil up to ₹4L, 5% for ₹4–8L, 10% for ₹8–12L, 15% for ₹12–16L, 20% for ₹16–20L, 25% for ₹20–24L and 30% above. If taxable income is ₹12L or less, the Section 87A rebate makes the tax zero. Finally add 4% cess. Example: a ₹15L salary → ₹14.25L taxable → ₹20,000 + ₹40,000 + ₹33,750 = ₹93,750, plus cess = ₹97,500. The calculator above does this for both regimes and picks the cheaper one.
Is there any change in income tax slabs for FY 2026-27?
No. Budget 2026 made no changes to the income tax slabs — FY 2026-27 uses the same rates introduced for FY 2025-26: nil to ₹4L, then 5/10/15/20/25% bands up to ₹24L and 30% above, with the ₹60,000 Section 87A rebate keeping income up to ₹12L tax-free in the new regime. The bigger change is procedural: from 1 April 2026 the new Income-tax Act, 2025 replaces the 1961 Act, simplifying language and replacing 'assessment year' with 'tax year' — but the rates and your tax amount stay the same.
Is income up to ₹12 lakh really tax-free in 2026?
Yes — taxable income up to ₹12 lakh attracts zero tax in the new regime, thanks to the Section 87A rebate of up to ₹60,000. For salaried people the effective line is higher: the ₹75,000 standard deduction means a gross salary up to ₹12,75,000 results in nil tax. Two caveats: it's the new regime only (the old regime's rebate stops at ₹5L), and it excludes special-rate income — capital gains from shares or crypto are taxed separately even if your salary alone is under the limit.
What is marginal relief above ₹12 lakh?
Without relief, earning ₹1 above ₹12L taxable would jump your tax from ₹0 to over ₹61,500 — a cliff. Marginal relief caps your tax (before cess) at the amount you earned above ₹12,00,000. So at ₹12,10,000 taxable you pay ₹10,000 + cess = ₹10,400, not ₹63,960. The relief tapers off at ₹12,70,588, where normal slab tax takes over. This calculator applies it automatically and shows a note when it's protecting you — many calculators skip it and overstate your tax.
What is the standard deduction for FY 2026-27?
₹75,000 under the new regime and ₹50,000 under the old regime, for salaried employees and pensioners — unchanged from FY 2025-26 (AY 2026-27). It's applied automatically to salary income before the slabs; you don't need to invest or submit any proof. Family pensioners get ₹25,000 (new regime). Business or professional income doesn't get a standard deduction — freelancers should look at presumptive taxation under 44ADA instead, which lets them declare 50% of receipts as income.
Which is better for me — the old or new tax regime?
The new regime wins for most people since its FY 2025-26 overhaul: zero tax to ₹12L taxable and lower rates throughout. The old regime only wins if your deductions are large — roughly, you need total deductions (80C + 80D + HRA + home-loan interest + NPS) to exceed ₹4.5–5.5L a year at incomes above ₹15L for it to compete. Big HRA claims plus a home loan are the classic case. Enter your actual deductions above to see both numbers, and use our dedicated old-vs-new regime tool for the exact break-even for your salary.
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