Income Tax Calculator FY 2026-27: Old vs New Regime
Enter your salary and deductions to see your tax under both regimes side by side, and which one saves you more.
Rules applicable for FY 2026-27, last updated 28 Oct 2026
Your tax for FY 2026-27
New regime saves you ₹1,59,900 this year.
See the full calculation
| Gross income | ₹15,00,000 |
|---|---|
| − Standard deduction (section 19(1), Table item 2) | ₹75,000 |
| Taxable income | ₹14,25,000 |
| Tax at 5% on 4,00,000–8,00,000 | ₹20,000 |
| Tax at 10% on 8,00,000–12,00,000 | ₹40,000 |
| Tax at 15% on 12,00,000–16,00,000 | ₹33,750 |
| Tax at slab rates | ₹93,750 |
| + Health & education cess (4%) | ₹3,750 |
| Total tax payable | ₹97,500 |
| Gross income | ₹15,00,000 |
|---|---|
| − Standard deduction (section 19(1), Table item 2) | ₹50,000 |
| Taxable income | ₹14,50,000 |
| Tax at 5% on 2,50,000–5,00,000 | ₹12,500 |
| Tax at 20% on 5,00,000–10,00,000 | ₹1,00,000 |
| Tax at 30% on 10,00,000+ | ₹1,35,000 |
| Tax at slab rates | ₹2,47,500 |
| + Health & education cess (4%) | ₹9,900 |
| Total tax payable | ₹2,57,400 |
Your result explained
The calculator works out your tax twice, once under each regime, and highlights the one that costs less. The figure shown is your full-year tax including the 4% health and education cess, rounded to the nearest ₹10. Divide by 12 for an idea of the monthly TDS your employer would deduct.
Worked example
Suppose your salary is ₹15,00,000 for FY 2026-27, your exempt HRA is ₹1,20,000, you invest ₹1,50,000 in PF and ELSS, pay ₹25,000 for health insurance and ₹2,500 as professional tax.
- New regime: only the ₹75,000 standard deduction applies, so taxable income is ₹14,25,000. Slab tax is ₹93,750; with cess the total is ₹97,500.
- Old regime: the ₹50,000 standard deduction plus HRA, professional tax, investments and health insurance bring taxable income down to ₹11,52,500. Slab tax is ₹1,58,250; with cess the total is ₹1,64,580.
In this example the new regime is cheaper by ₹67,080. With bigger deductions, such as home loan interest, the answer can flip.
How it is calculated
For FY 2026-27 (Tax year 2026-27) the rules come from the Income-tax Act, 2025 and the Finance Act, 2026. Rates are the same in FY 2025-26 and FY 2026-27; only the section numbers changed when the new Act came into force on 1 April 2026.
- Gross income = salary + other income + interest.
- Taxable income = gross income − allowed deductions, rounded to the nearest ₹10 (section 516). New regime: standard deduction of ₹75,000 and employer NPS up to 14% of basic + DA (section 19(1), Table item 2; section 124(1) and (2)). Old regime: standard deduction of ₹50,000, HRA (Schedule III, Table item 11), professional tax (section 19(1), Table item 1), home loan interest up to ₹2,00,000 (section 22(2)), investments up to ₹1,50,000 (section 123), own NPS up to ₹50,000 (section 124(3)), health insurance (section 126) and interest up to ₹10,000, or ₹50,000 for seniors (section 153).
- Slab tax. New regime (section 202): nil up to ₹4 lakh, then 5%, 10%, 15%, 20% and 25% for each ₹4 lakh step, and 30% above ₹24 lakh. Old regime (Part I-B of the First Schedule to the Finance Act, 2026): nil up to ₹2.5 lakh (₹3 lakh at 60–79, ₹5 lakh at 80+), 5% up to ₹5 lakh, 20% up to ₹10 lakh and 30% above.
- Rebate (section 156): up to ₹60,000 if taxable income is ₹12 lakh or less in the new regime, with marginal relief just above it; up to ₹12,500 if it is ₹5 lakh or less in the old regime.
- Surcharge on the tax: 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore and, in the old regime only, 37% above ₹5 crore, with marginal relief at each threshold.
- Cess of 4% on tax plus surcharge. The total is rounded to the nearest ₹10.
This calculator is for resident individuals with salary and other income taxed at slab rates. It does not cover capital gains taxed at special rates, business income, let-out property or non-residents.
Frequently asked questions
Which tax regime is better for me, old or new?
It depends on your deductions. The new regime has lower slab rates and a ₹75,000 standard deduction but allows almost no other deductions. The old regime has higher rates but allows HRA, up to ₹1.5 lakh of investments such as PF, PPF and ELSS, health insurance, home loan interest and more. If your old-regime deductions are small, the new regime usually costs less. Enter your own figures in the calculator to compare exactly.
Is income up to ₹12 lakh tax-free in FY 2026-27?
Yes, for resident individuals under the new regime. A rebate of up to ₹60,000 (section 156 of the Income-tax Act, 2025; section 87A of the 1961 Act for FY 2025-26) cancels the tax when total income is ₹12 lakh or less, so a salary of up to ₹12.75 lakh pays no tax after the ₹75,000 standard deduction. Just above ₹12 lakh, marginal relief caps the tax at the amount by which your income exceeds ₹12 lakh. The rebate covers tax at normal slab rates only, so tax on capital gains taxed at special rates can still be payable.
What is the standard deduction for FY 2026-27?
Salaried employees and pensioners get a standard deduction of ₹75,000 under the new regime and ₹50,000 under the old regime (section 19 of the Income-tax Act, 2025; section 16(ia) of the 1961 Act). It is allowed automatically, without any proof, and cannot be more than your salary.
Can I switch between the old and new tax regime every year?
If you have no business or professional income, yes. The new regime is the default, and you can choose the old regime each year when you file your return. If you have business or professional income, opting out of the new regime must be done by the return due date, carries on to later years, can be withdrawn only once, and after that you cannot opt for the old regime again while you have business income.
Which deductions are allowed in the new tax regime?
Mainly the ₹75,000 standard deduction for salary and pension, your employer's NPS contribution up to 14% of basic pay plus DA, and contributions to the Agniveer Corpus Fund. HRA exemption, investments under section 80C (section 123 of the 2025 Act), your own NPS contribution, health insurance, professional tax and interest on a self-occupied home loan are not allowed.
What is marginal relief in income tax?
Marginal relief stops a small rise in income from causing a much larger rise in tax. Under the new regime, if your income is slightly above ₹12 lakh, the tax payable cannot exceed the income above ₹12 lakh. Similarly, when income crosses ₹50 lakh, ₹1 crore, ₹2 crore or ₹5 crore, the extra tax and surcharge cannot exceed the extra income. This calculator applies both automatically.
Do senior citizens pay less income tax?
Under the old regime, yes: tax starts above ₹3 lakh for people aged 60 to 79 and above ₹5 lakh for those 80 or older, instead of ₹2.5 lakh. Seniors can also deduct up to ₹50,000 of health insurance and up to ₹50,000 of interest on deposits. The new regime has the same slabs for every age.
Will this match the TDS my employer deducts?
It should be close if you enter the same salary, regime and deductions you declared to your employer. Your employer estimates TDS during the year from your declarations and proofs, so the final tax in your return can differ, especially if you have other income or change your regime when filing.
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Disclaimer: This calculator gives an estimate for general information only. It is not professional tax, legal or financial advice, and your actual liability may differ. Please consult a qualified professional before acting on these figures.