Income Tax Calculator FY 2026-27 | Old vs New Regime Slabs

Free Income Tax Calculator FY 2026-27. Compare Old vs New Tax Regime tax slabs, 80C deductions, and HRA exemptions. Calculate total tax liability with ease.

New Tax Regime Income Tax Slabs (FY 2026-27 / AY 2027-28)

  • Up to ₹4,00,000: NIL (0% Tax)
  • ₹4,00,001 to ₹8,00,000: 5% on income exceeding ₹4,00,000
  • ₹8,00,001 to ₹12,00,000: ₹20,000 + 10% on income exceeding ₹8,00,000
  • ₹12,00,001 to ₹16,00,000: ₹60,000 + 15% on income exceeding ₹12,00,000
  • ₹16,00,001 to ₹20,00,000: ₹1,20,000 + 20% on income exceeding ₹16,00,000
  • ₹20,00,001 to ₹24,00,000: ₹2,00,000 + 25% on income exceeding ₹20,00,000
  • Above ₹24,00,000: ₹3,00,000 + 30% on income exceeding ₹24,00,000
  • Standard Deduction: Flat ₹75,000 for salaried employees and pensioners.
  • Section 87A Tax Rebate: 100% tax rebate on total taxable income up to ₹12,00,000 (tax payable is ZERO). Gross salary up to ₹12.75 Lakh is 100% tax-free with standard deduction.
  • Health & Education Cess: 4% levied on total computed income tax.

Old Tax Regime Slabs & Major Deductions

  • Up to ₹2,50,000: NIL | ₹2,50,001 to ₹5,00,000: 5% (Rebate up to ₹5 Lakh)
  • ₹5,00,001 to ₹10,00,000: 20% | Above ₹10,00,000: 30%
  • Section 80C: Up to ₹1.5 Lakh (EPF, PPF, ELSS mutual funds, life insurance, home loan principal).
  • Section 80D: Up to ₹25,000 (self/family) + ₹50,000 (senior citizen parents) for health insurance.
  • Section 24(b): Up to ₹2 Lakh home loan interest deduction on self-occupied house.

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Frequently Asked Questions (FAQs)

How does the ₹12.75 Lakh zero-tax rule work under the New Tax Regime?
The revised New Tax Regime provides a full rebate under Section 87A for net taxable income up to ₹12,00,000. Salaried employees also receive a mandatory ₹75,000 standard deduction, which reduces gross income from ₹12,75,000 to ₹12,00,000. Because net taxable income is exactly ₹12,00,000, Section 87A rebate wipes out the entire tax liability, resulting in zero tax.
Is standard deduction available to pensioners?
Yes. Pension received from a former employer is taxed under the head 'Salaries', making pensioners eligible for the full ₹75,000 standard deduction under the New Tax Regime (and ₹50,000 under the Old Regime).
Can I claim 80C and HRA under the New Tax Regime?
No. The New Tax Regime does not permit Chapter VI-A deductions (Section 80C, 80D, 80E) or allowances like HRA and LTA. However, employer's contribution to NPS under Section 80CCD(2) up to 14% of salary remains deductible under both regimes.
What is the surcharge rate for high-income earners in India?
Surcharge rates under the New Tax Regime: 10% for income between ₹50 Lakh and ₹1 Crore; 15% for income between ₹1 Crore and ₹2 Crore; and capped at 25% for income exceeding ₹2 Crore (the 37% slab of Old Regime is abolished under New Regime).
Which tax regime should I choose for FY 2026-27?
If your total tax-saving deductions (80C, 80D, HRA, home loan interest) are below ₹3.75 Lakh, the New Tax Regime generally yields lower tax. Use our online Income Tax Calculator to compare your exact tax liability under both regimes before filing.