How to use the income tax calculator
- Annual salary: your gross salary for the year, including bonus, before any tax is deducted.
- Other income: savings and FD interest, rental income and other income taxed at slab rates.
- Age: senior citizens get a higher exemption limit in the old regime.
- Deductions: only used for the old regime. The new regime ignores them automatically.
Both results update as you type. The table shows every step of the calculation for each regime, so you can see exactly where the difference comes from.
New regime tax slabs for 2026-27
| Taxable income | Tax rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
- Standard deduction: ₹75,000 for salary and pension.
- Rebate up to ₹60,000 when taxable income is up to ₹12,00,000.
- Surcharge is capped at 25%.
Old regime tax slabs for 2026-27
| Taxable income (below 60) | Tax rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
The basic exemption is ₹3,00,000 for senior citizens (60 to 79) and ₹5,00,000 for super senior citizens (80 and above). A rebate of up to ₹12,500 applies when taxable income is up to ₹5,00,000, and the standard deduction is ₹50,000.
Surcharge and cess
A surcharge is added to the tax when taxable income crosses ₹50 lakh: 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore and 37% above ₹5 crore (the new regime stops at 25%). Marginal relief makes sure the extra tax never exceeds the income above each threshold. Finally, a 4% health and education cess is charged on the tax plus surcharge. The calculator applies all of these automatically.
Worked example: ₹15 lakh salary
| Item | New regime | Old regime |
|---|---|---|
| Gross salary | ₹15,00,000 | ₹15,00,000 |
| Deductions | ₹75,000 (standard) | ₹2,27,500 (standard, 80C, 80D, professional tax) |
| Taxable income | ₹14,25,000 | ₹12,72,500 |
| Tax + cess | ₹97,500 | ₹2,02,020 |
Even with ₹1.5 lakh in 80C and ₹25,000 in health insurance, the old regime costs about ₹1 lakh more here. It only catches up when HRA, home loan interest and NPS push total deductions far higher.
Tax at common salary levels
New regime vs old regime with 80C (₹1.5 lakh), 80D (₹25,000) and professional tax:
| Salary | New regime | Old regime |
|---|---|---|
| ₹10,00,000 | ₹0 | ₹69,680 |
| ₹12,75,000 | ₹0 | ₹1,31,820 |
| ₹20,00,000 | ₹1,92,400 | ₹3,58,020 |
| ₹30,00,000 | ₹4,75,800 | ₹6,70,020 |
When the old regime still makes sense
- You pay high rent in a metro and get a large HRA exemption.
- You pay interest on a home loan for the house you live in (up to ₹2 lakh deductible). The EMI calculator shows your interest for each year.
- You already use the full ₹1.5 lakh under 80C (for example through PPF or EPF), plus 80D and NPS.
Above about ₹24 lakh of income, the old regime needs roughly ₹8 lakh of total deductions and exemptions (beyond the standard deduction) to beat the new regime. Few people reach that.
Want to see your take-home pay after tax? Try the salary calculator. Running a business? Work out the tax on your invoices with the GST calculator. Selling shares or mutual funds this year? Use the capital gains calculator.
Frequently asked questions
Which tax regime is better for tax year 2026-27?
For most salaried people the new regime now gives lower tax, because its slabs are wider and salary up to ₹12.75 lakh is effectively tax-free. The old regime wins only if you claim large deductions: at a ₹15 lakh salary you need roughly ₹5.4 lakh of deductions and exemptions beyond the standard deduction for the old regime to come out ahead. Enter your numbers above to compare.
Is income up to ₹12 lakh tax-free?
Yes, in the new regime. A rebate of up to ₹60,000 wipes out the tax on taxable income up to ₹12 lakh. Salaried people also get the ₹75,000 standard deduction, so a salary of up to ₹12.75 lakh pays no tax. Just above ₹12 lakh, marginal relief ensures your tax is never more than the income above ₹12 lakh.
What is the standard deduction?
A flat deduction from salary or pension income with no proof needed: ₹75,000 in the new regime and ₹50,000 in the old regime.
Can I claim 80C, HRA and home loan interest in the new regime?
No. The new regime does not allow most deductions and exemptions, including Section 80C, 80D, HRA, home loan interest on a self-occupied house and professional tax. It does allow the standard deduction and the employer’s NPS contribution.
Does the rebate apply to capital gains?
No. The rebate applies to income taxed at normal slab rates. Capital gains on shares and equity funds taxed at special rates are not covered, so tax on them is payable even if your total income is below ₹12 lakh. Use our capital gains calculator for that part.
Can I switch between the old and new regime?
Salaried people without business income can choose the regime every year when filing their return. The new regime is the default, so you must actively opt for the old regime. People with business income can switch back only once.
What changed with the Income-tax Act, 2025?
The new Act replaced the Income-tax Act, 1961 from 1 April 2026. It uses a single "tax year" instead of previous year and assessment year, and renumbers sections (for example, Section 80C is now Section 123). Tax slabs, rates, the rebate and the standard deduction for tax year 2026-27 are unchanged from the previous year.
Sources
Last updated 19 September 2026. Results are estimates for planning only and are not investment, tax or legal advice. See our disclaimer.