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Income Tax Calculator
FY 2026-27 (AY 2027-28)
FY 2026-27 (AY 2027-28)
Old Regime vs New Regime — see which saves you more tax, with full slab-wise breakdown. Updated for Budget 2026 & Income Tax Act 2025.
Assessment Year:
AY 2027-28 (FY 2026-27)
📌 Budget 2026: No slab changes from FY 2025-26
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Your Income & Deductions
Annual Gross Income (CTC) Before any deductions
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/ year
Standard Deduction Auto-applied for salaried
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Fixed
Section 80CCD(2) — Employer NPS (New Regime)
Employer NPS Contribution (monthly) Max 14% of basic salary
₹
/ mo
Deductions (Old Regime)
₹
₹
₹
₹
₹
₹
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Your Tax Breakdown
Enter your income above to calculate tax
New Regime vs Old Regime — Complete Tax Slabs FY 2026-27
Budget 2026 made no changes to income tax slabs. The rates for FY 2026-27 (AY 2027-28) are identical to FY 2025-26. Here is the complete picture:
🆕 New Tax Regime — Default from FY 2023-24
| Income Slab | Tax Rate | Tax on Slab (Max) |
|---|---|---|
| Up to ₹4,00,000 | Nil | ₹0 |
| ₹4,00,001 – ₹8,00,000 | 5% | ₹20,000 |
| ₹8,00,001 – ₹12,00,000 | 10% | ₹40,000 |
| ₹12,00,001 – ₹16,00,000 | 15% | ₹60,000 |
| ₹16,00,001 – ₹20,00,000 | 20% | ₹80,000 |
| ₹20,00,001 – ₹24,00,000 | 25% | ₹1,00,000 |
| Above ₹24,00,000 | 30% | — |
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Key benefit: For salaried individuals, gross salary up to ₹12,75,000 is effectively tax-free under the new regime — after ₹75,000 standard deduction, taxable income = ₹12,00,000, and Section 87A rebate of ₹60,000 wipes out the entire ₹60,000 tax liability. Zero tax. No investments required.
📋 Old Tax Regime — Choose to Save More with Deductions
| Income Slab | Tax Rate (Below 60) | Senior (60–80) | Super Senior (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% |
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Old regime deductions available: Section 80C (₹1.5L), HRA exemption, Home loan interest Section 24(b) (₹2L), 80D health insurance (₹25K–₹75K), NPS 80CCD(1B) (₹50K), education loan interest 80E (no limit), and more. These deductions can significantly reduce taxable income — the old regime wins when total deductions exceed ₹3.75 lakhs.
Which Regime Saves More — At Your Income Level
| Annual Income | New Regime Tax | Old Regime Tax* | Better Choice |
|---|---|---|---|
| ₹6,00,000 | ₹0 (rebate) | ₹0 (rebate) | Same |
| ₹8,00,000 | ₹0 (rebate) | ₹5,200 | New Regime ✓ |
| ₹10,00,000 | ₹0 (rebate) | ₹33,800 | New Regime ✓ |
| ₹12,75,000 | ₹0 (rebate) | ₹93,600 | New Regime ✓ |
| ₹15,00,000 | ₹1,17,000 | ₹1,17,000* | Depends on deductions |
| ₹20,00,000 | ₹2,73,000 | ₹2,08,000* | Old Regime ✓ |
| ₹30,00,000 | ₹5,46,000 | ₹3,90,000* | Old Regime ✓ |
*Old regime figures assume max 80C (₹1.5L) + standard deduction (₹50K) only. More deductions = lower old regime tax. All figures include 4% cess.
📖 Real Example — ₹52,000 Saved by Choosing the Right Regime
Priya, a 29-year-old software engineer in Bengaluru earning ₹18 lakhs per annum, was auto-enrolled in the new regime by her employer. She had an active home loan (interest ₹1.8L/year) and maxed her 80C at ₹1.5L. Her accountant ran the comparison.
Under the new regime: tax = ₹2,34,000. Under the old regime with her deductions (₹1.5L + ₹1.8L + ₹50K standard = ₹3.8L total): taxable income = ₹14.2L, tax = ₹1,82,000. She switched to the old regime and saved ₹52,000 in one year — just by making the right choice before March 31.
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Deadline alert: You can switch between regimes every year while filing your ITR (if you are salaried with no business income). The ITR deadline is July 31, 2026 for FY 2025-26. The new regime is the default — if you want the old regime, you must actively choose it when filing.
Frequently Asked Questions
Is income up to ₹12 lakh really tax-free in the new regime?
For salaried individuals, yes — effectively. After the ₹75,000 standard deduction, gross salary of ₹12,75,000 brings taxable income to ₹12,00,000. The tax on ₹12L is ₹60,000 — which is exactly offset by the Section 87A rebate. Net tax = ₹0. However, for income above ₹12,75,000 (even by ₹1), the rebate vanishes and tax applies on the full taxable income. Marginal relief provisions help reduce this cliff effect.
Can I switch between old and new regime every year?
Yes — salaried individuals with no business income can switch regimes every year while filing their ITR. You can also inform your employer at the start of each financial year which regime to use for TDS deduction. If you miss informing your employer, you can still choose the other regime in your ITR filing.
What deductions are available in the new regime?
Very few. Under the new regime, you can only claim: standard deduction of ₹75,000, employer NPS contribution under Section 80CCD(2) (up to 14% of basic salary), and a few other specific deductions. HRA, 80C investments, home loan interest (Section 24b), 80D health insurance — none of these are available in the new regime.
At what income level does the old regime become better?
The old regime becomes beneficial when your total deductions exceed approximately ₹3.75 lakhs. This includes standard deduction (₹75K) + 80C (₹1.5L) + other deductions. Practically: if you have a home loan (Section 24b interest) AND max 80C investments, the old regime typically wins above ₹15 lakhs of income. Use the calculator above to find your exact break-even point.
What is the Income Tax Act 2025 and does it change anything?
The Income Tax Act 2025 came into effect from April 1, 2026, replacing the Income Tax Act 1961. It simplifies language, reorganises provisions, and reduces the number of sections — but makes no changes to tax rates, slab structures, deductions, or exemptions. Everything you knew about Indian income tax still applies; only the section numbers and document structure have changed.
What is surcharge and when does it apply?
Surcharge is an additional tax on high incomes: 10% for income above ₹50 lakhs, 15% above ₹1 crore, 25% above ₹2 crores. Under the new regime, surcharge is capped at 25% (even for income above ₹5 crores). Under the old regime, it can go up to 37% for income above ₹5 crores. For most salaried professionals earning under ₹50 lakhs, surcharge does not apply.
The right tax regime depends on one number: your total deductions. If you have a home loan, max 80C investments, and health insurance — the old regime likely saves you more above ₹15 lakhs. If you are a fresher, job-switcher, or someone with minimal investments — the new regime is simpler and often cheaper.
Use the calculator above, enter your actual income and deductions, compare both regimes, and then inform your employer before the financial year ends. It takes 5 minutes. The savings can be ₹30,000–₹1,00,000+.
Disclaimer: This calculator is for educational reference only. Tax computations are based on standard Income Tax Act 2025 provisions applicable from April 1, 2026, including the Section 87A rebate and standard deduction for salaried individuals. Results do not account for surcharge on incomes above ₹50 lakhs, special rate incomes (capital gains, etc.), or individual-specific circumstances. Always consult a qualified Chartered Accountant before filing your ITR. InfoBuddy is not a registered tax advisor.