Income Tax Calculator 2026-27 (New vs Old Regime)

How to use this income tax calculator

1. Enter your gross salary for the year, including allowances and bonus, and any other income taxed at slab rates, such as FD interest.
2. Pick your age. It only changes the old regime's tax-free limit.
3. Add your old-regime deductions: tax-saving investments (counted up to ₹1.5 lakh), health insurance premiums and home loan interest. Open "More options" for HRA, extra NPS contributions and other deductions.
4. Read the result. You see the tax in each regime, which one is lower and by how much, your monthly tax and the amount of deductions at which the old regime would break even.

Income tax slabs for 2026-27

The Income-tax Act, 2025 has applied since 1 April 2026, and Budget 2026 left the rates unchanged. Tax is charged band by band, so only the income inside each band is taxed at that band's rate.

In the old regime the tax-free limit rises to ₹3 lakh for residents aged 60–79 and ₹5 lakh at 80 or older. Both regimes add a 4% health and education cess on the tax, and a surcharge applies above ₹50 lakh of income: 10%, rising to 15% above ₹1 crore and 25% above ₹2 crore. The old regime adds 37% above ₹5 crore; the new regime caps the surcharge at 25%.

Tax by salary in both regimes

For tax year 2026-27, for a resident under 60, with ₹1.75 lakh of deductions (₹1.5 lakh of investments and ₹25,000 of health insurance) in the old regime:

Pick any salary from ₹5 lakh to ₹50 lakh in income tax by salary for the slab-by-slab breakdown, the old regime at common deduction levels and your monthly take-home.

The ₹12 lakh rebate and marginal relief

Under the new regime, residents with taxable income up to ₹12 lakh get a rebate of up to ₹60,000, which wipes out their tax. With the standard deduction, that covers a salary of up to ₹12.75 lakh. Without help, earning one rupee more would suddenly cost tens of thousands in tax, so marginal relief caps the tax at the income above ₹12 lakh. On a ₹12.85 lakh salary, taxable income is ₹12.1 lakh: the slab tax would be ₹61,500, but marginal relief limits it to ₹10,000, or ₹10,400 with cess.

The old regime has a smaller rebate that makes taxable income up to ₹5 lakh tax-free, with no marginal relief above it. Non-residents don't get either rebate; turn off "I am resident in India" under "More options" to see their tax.

Which regime should you choose?

The new regime applies unless you choose the old one. It has lower rates but almost no deductions, so the question is whether your deductions are big enough to make up for the old regime's higher rates. The calculator answers that with a break-even figure: on a ₹15 lakh salary, the old regime only wins with more than ₹5,43,750 of deductions on top of the standard deduction.

People with large deductions, such as the full ₹1.5 lakh of investments, home loan interest of up to ₹2 lakh on a home they live in, a sizeable HRA exemption and health insurance for themselves and their parents, can still come out ahead in the old regime. Enter what you really claim, not what you might, and the calculator shows both regimes side by side.

Monthly TDS and take-home

Your employer spreads your tax across the year as TDS, so the monthly tax figure is roughly what you will see deducted from your salary. The income-after-tax figure is before PF and other payroll deductions. Planning your savings? See how a monthly amount could grow with the SIP calculator, or work out a tax-free PPF balance. For gifts you receive, use the gift tax calculator.

This calculator gives estimates for education and planning. It is not financial advice, and your lender's figures may differ. See how we calculate.