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Income Tax Calculator FY 2026-27.

Old vs new regime, side by side — post-Finance Act 2025 slabs, the ₹60,000 Section 87A rebate up to ₹12 lakh, exact marginal relief at the rebate cliff and every surcharge threshold, and 4% cess. Finance Act 2026 left the slabs unchanged.

Your income & deductions
Gross salary / income (₹ per year)
Annual gross before standard deduction. Salary income assumed — special-rate income (LTCG / STCG) is not modelled.
Age band (old-regime slabs)
Old-regime deductions (₹ per year — ignored in the new regime)
Section 80C
Capped at ₹1,50,000
Section 80D
Capped at ₹25,000 for this age band
Sec 24(b) home-loan interest
Self-occupied cap ₹2,00,000
Other (80CCD(1B), 80G, …)
HRA exemption also belongs here
Verdict
The new regime saves ₹1,05,300.
With ₹1,75,000 of old-regime deductions claimed (after statutory caps).
New regime — total tax
₹97,500
Effective 6.50% of gross
Old regime — total tax
₹2,02,800
Effective 13.52% of gross
Difference
₹1,05,300
In favour of the new regime
New regime
Gross income₹15,00,000
Standard deduction− ₹75,000
Taxable income₹14,25,000
Slab tax₹93,750
Surcharge₹0
Health & Education Cess @ 4%₹3,750
Total tax₹97,500
Slab-wise breakdown
SlabRateAmountTax
₹0L – ₹4L0%₹4,00,000₹0
₹4L – ₹8L5%₹4,00,000₹20,000
₹8L – ₹12L10%₹4,00,000₹40,000
₹12L – ₹16L15%₹2,25,000₹33,750
Old regime — below 60
Gross income₹15,00,000
Standard deduction− ₹50,000
Deductions (capped)− ₹1,75,000
Taxable income₹12,75,000
Slab tax₹1,95,000
Surcharge₹0
Health & Education Cess @ 4%₹7,800
Total tax₹2,02,800
Slab-wise breakdown
SlabRateAmountTax
₹0L – ₹2.5L0%₹2,50,000₹0
₹2.5L – ₹5L5%₹2,50,000₹12,500
₹5L – ₹10L20%₹5,00,000₹1,00,000
₹10L – ∞30%₹2,75,000₹82,500
From 1 April 2026 (FY 2026-27) the Income-tax Act 2025 replaces the 1961 Act — the computation above is unchanged, but section numbers are: 87A → Sec 156, 10(13A) → Schedule III. Map any old citation with the Income-tax Act 2025 section mapper.
Why practitioners use this

Marginal relief here is exact, not approximated.

Most online calculators skip marginal relief at the ₹12 lakh rebate cliff and at each surcharge threshold. This one computes both to the rupee — the same way the utility on the e-filing portal does.

Next step

Put the tax file on autopilot.

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How income tax for FY 2026-27 is computed

For FY 2026-27 (AY 2027-28) the new regime — the default — taxes income in seven slabs set by the Finance Act 2025 and left unchanged by the Finance Act 2026: nil up to ₹4 lakh, 5% on ₹4–8 lakh, 10% on ₹8–12 lakh, 15% on ₹12–16 lakh, 20% on ₹16–20 lakh, 25% on ₹20–24 lakh and 30% above ₹24 lakh. Salaried taxpayers get a ₹75,000 standard deduction, and a Section 87A rebate of up to ₹60,000 wipes out tax on taxable income up to ₹12 lakh — so a salary of up to ₹12.75 lakh can be tax-free. Just above ₹12 lakh, marginal relief caps the tax at the amount by which taxable income exceeds ₹12 lakh, phasing out at roughly ₹12.71 lakh.

The old regime keeps the legacy slabs — nil up to ₹2.5 lakh (₹3 lakh for senior citizens aged 60–80, ₹5 lakh for super seniors aged 80+), 5% to ₹5 lakh, 20% to ₹10 lakh and 30% beyond — with a ₹50,000 standard deduction, the ₹12,500 Section 87A rebate up to ₹5 lakh, and the full menu of deductions: 80C (₹1.5 lakh cap), 80D health insurance (₹25,000, or ₹50,000 for seniors), Section 24(b) home-loan interest (₹2 lakh cap on self-occupied property), HRA, 80CCD(1B) NPS and more. Surcharge runs 10% / 15% / 25% / 37% above ₹50 lakh / ₹1 crore / ₹2 crore / ₹5 crore in the old regime but is capped at 25% in the new regime, with marginal relief at every threshold; Health & Education Cess adds 4% on tax plus surcharge.

One structural change does land this year: from 1 April 2026 the Income-tax Act 2025 replaces the Income-tax Act 1961, so FY 2026-27 is computed under the new Act. Rates and reliefs are carried over unchanged, but nearly every section is renumbered — Section 87A becomes Section 156, Section 115BAC's regime election moves, and exemptions like HRA shift into Schedule III. Use our Income-tax Act 2025 section mapper to translate old citations before quoting them in working papers or Form 3CD.

Worked example — ₹15 lakh salary, both regimes

A resident individual below 60 earns a gross salary of ₹15,00,000 in FY 2026-27 and can claim ₹1,50,000 under 80C plus ₹25,000 under 80D in the old regime.

Inputs
Gross salary₹15,00,000
New regime: standard deduction₹75,000 → taxable ₹14,25,000
Old regime: standard deduction + 80C + 80D₹50,000 + ₹1,75,000 → taxable ₹12,75,000
Output
New regime tax₹20,000 + ₹40,000 + 15% × ₹2,25,000 = ₹93,750; + 4% cess = ₹97,500
Old regime tax₹12,500 + ₹1,00,000 + 30% × ₹2,75,000 = ₹1,95,000; + 4% cess = ₹2,02,800
VerdictNew regime saves ₹1,05,300
Even with ₹1.75 lakh of deductions, the old regime's 30% band starting at ₹10 lakh overwhelms the benefit. For the old regime to win at ₹15 lakh gross, total deductions (beyond the ₹50,000 standard deduction) would need to reach roughly ₹5.44 lakh — feasible only with a large home-loan interest or HRA claim stacked on 80C and NPS.

Common mistakes

Ignoring marginal relief at the ₹12 lakh rebate cliff
At taxable income of ₹12,10,000 the slab tax is ₹61,500 — but marginal relief caps the liability at ₹10,000 (the excess over ₹12 lakh), i.e. ₹10,400 with cess. Calculators that skip this relief overstate tax by over ₹50,000 in the ₹12.00–12.71 lakh band. The relief exhausts at about ₹12,70,588 of taxable income.
Approximating surcharge marginal relief
At ₹51 lakh taxable (old regime), 10% surcharge naively gives ₹14,76,750 of tax — but relief caps it at tax on ₹50 lakh plus the ₹1 lakh of income above the threshold, i.e. ₹14,12,500 before cess. The same cap applies at ₹1 crore, ₹2 crore and ₹5 crore. Compute it at each threshold; never apply the surcharge rate flat.
Comparing regimes on gross rather than taxable income
The standard deduction differs — ₹75,000 new vs ₹50,000 old — so the same gross salary produces different taxable bases before any Chapter VI-A deduction is counted. A regime comparison done on gross income, or one that forgets employer NPS under 80CCD(2) remains deductible in the new regime, will pick the wrong regime at the margin.
Applying the ₹60,000 rebate to special-rate income
The Section 87A rebate does not apply against income taxed at special rates — notably LTCG under Section 112A. A taxpayer with ₹11 lakh salary and ₹2 lakh of equity LTCG still pays tax on the gains even though total income under ₹12 lakh "feels" rebate-eligible. This calculator models salary-slab income only.
Missing the regime-election mechanics
The new regime is the default. A salaried taxpayer can switch regimes every year in the return, but a taxpayer with business or professional income must elect out via Form 10-IEA and, having returned to the new regime, gets only one more lifetime switch back to the old regime.

Frequently asked questions

Which regime is better for a ₹15 lakh salary in FY 2026-27?+
It depends entirely on your deductions. At ₹15 lakh gross the new regime charges ₹97,500 (with cess). The old regime only beats it if your deductions beyond the ₹50,000 standard deduction reach about ₹5.44 lakh — for example ₹1.5 lakh 80C + ₹2 lakh home-loan interest + ₹50,000 NPS + a sizeable HRA exemption. With just 80C and 80D, the new regime saves over ₹1 lakh. Run your actual numbers rather than a rule of thumb.
Is income up to ₹12 lakh really tax-free in FY 2026-27?+
Under the new regime, yes — taxable income up to ₹12 lakh attracts a Section 87A rebate of up to ₹60,000, which exactly cancels the slab tax. For salaried taxpayers the ₹75,000 standard deduction stretches this to a ₹12.75 lakh gross salary. It does not apply in the old regime (rebate there is ₹12,500 up to ₹5 lakh) and does not cover special-rate income like equity LTCG.
Did the Finance Act 2026 change the income tax slabs?+
No. Budget 2026 left both regimes' slabs, the ₹60,000 rebate, the standard deductions and the surcharge structure unchanged for FY 2026-27 (AY 2027-28). The slabs remain those set by the Finance Act 2025: nil to ₹4L, then 5% / 10% / 15% / 20% / 25% in ₹4-lakh bands, and 30% above ₹24 lakh.
What is marginal relief above ₹12 lakh?+
If taxable income just exceeds ₹12 lakh, the rebate vanishes — without relief, ₹12,10,000 of income would suffer ₹61,500 of tax against ₹0 at ₹12,00,000. Marginal relief caps the tax (before cess) at the amount by which income exceeds ₹12 lakh, so at ₹12.10 lakh you pay ₹10,000 plus cess. The relief tapers away at roughly ₹12,70,588, beyond which full slab tax applies.
What are the surcharge rates for FY 2026-27?+
On total income above ₹50 lakh: 10%; above ₹1 crore: 15%; above ₹2 crore: 25%; above ₹5 crore: 37% — but only in the old regime. The new regime caps surcharge at 25% even beyond ₹5 crore. Marginal relief applies at every threshold so that tax plus surcharge never exceeds the tax at the threshold plus the income above it.
What is the standard deduction for FY 2026-27?+
₹75,000 under the new regime and ₹50,000 under the old regime, against salary or pension income. Family pensioners get ₹25,000 (new) / ₹15,000 (old). No documentation is needed — it applies automatically.
What changes under the Income-tax Act 2025 for FY 2026-27?+
The Income-tax Act 2025 takes effect on 1 April 2026, replacing the 1961 Act for FY 2026-27 onwards. Rates, the rebate and reliefs are unchanged — this is a renumbering and simplification exercise: Section 87A becomes Section 156, exemptions such as HRA move into Schedule III, and "previous year / assessment year" is replaced by a single "tax year". Working papers and returns must cite the new numbers.
Can I switch between the old and new regime every year?+
Salaried taxpayers (no business income) can choose either regime each year while filing the return. Taxpayers with business or professional income must opt out of the default new regime via Form 10-IEA, and once they re-enter the new regime they get only one further switch back to the old regime in their lifetime.

Authoritative sources

CBDT
Income and Tax Calculator — Income-tax Department — The official CBDT calculator — cross-check any figure from this page against it before filing.
CBDT
Section 156, Income-tax Act 2025 (rebate, formerly Sec 87A) — From 1 April 2026 the Income-tax Act 2025 governs; the ₹60,000 rebate up to ₹12 lakh with marginal relief sits in Section 156.
Always confirm against the latest version of the source. Regulations evolve and amendments are common.
Related calculators
HRA exemption calculator →Salary TDS (Sec 192) calculator →Advance tax & 234B/C interest →Income-tax Act 2025 section mapper →
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Last reviewed: 2026-07-29 · For informational purposes only — not professional advice.