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For individualsRates reviewed September 2026

Income Tax Calculator for FY 2026-27 (AY 2027-28)

This income tax calculator works out the tax on your total income for FY 2026-27 (AY 2027-28) under both the new regime and the old regime, so you can see which one costs less before you lock the choice in. Budget 2026 left the slabs, the section 87A rebate and the standard deduction unchanged, so the same numbers that applied to FY 2025-26 (AY 2026-27) carry forward.

The new regime is the default. It is now section 202 of the Income-tax Act, 2025, which replaced section 115BAC of the Income-tax Act, 1961 from 1 April 2026. If you want the old regime with its chapter VI-A deductions, HRA exemption and higher basic exemption for senior citizens, you have to opt for it, and a taxpayer with business or professional income has to file Form 10-IEA to do so.

The arithmetic itself is short: apply the slab rates, add surcharge if total income crosses ₹50 lakh, deduct the section 87A rebate where you qualify, then add health and education cess at 4 percent. The two places people go wrong are marginal relief at each surcharge threshold and the rebate cliff just above ₹12 lakh, both of which are handled below.

Income Tax Calculator

Salary, pension, house property, business and other sources, before any deduction.

₹
Salary or pension income

The standard deduction of ₹75,000 (new) or ₹50,000 (old) applies only to salary or pension.

Total tax payable

₹81,900

new regime, FY 2026-27

Gross total income₹14 lakh
₹14,00,000
Standard deduction
₹75,000
Deductions and exemptions claimedthe new regime allows none of these
₹0
Taxable incomenew regime slabs
₹13,25,000
Tax at slab ratesbefore rebate, surcharge and cess
₹78,750
Rebate u/s 87Atotal income is above the rebate threshold
₹0
Surchargetotal income is within ₹50 lakh
₹0
Health and education cess at 4%
₹3,150
Effective tax rateon gross total income
5.85%
Tax under the old regimecostlier by ₹89,700
₹1,71,600
  • Rates are for FY 2026-27 (AY 2027-28), unchanged from FY 2025-26.
  • The section 87A rebate assumes a resident individual and is not available against special-rate capital gains.
  • The old regime comparison uses the deduction figures entered on this form.

The formula

Tax payable = Slab tax + Surcharge − Rebate u/s 87A + Health and education cess at 4%

Slab tax
Tax on total income at the applicable regime's slab rates, after the standard deduction and any other allowed deductions.
Surcharge
10% above ₹50 lakh, 15% above ₹1 crore and 25% above ₹2 crore in the new regime; the old regime adds a 37% band above ₹5 crore.
Rebate u/s 87A
Up to ₹60,000 in the new regime where total income does not exceed ₹12,00,000, and up to ₹12,500 in the old regime up to ₹5,00,000.
Cess
Health and education cess at 4% on income tax plus surcharge, charged in both regimes.

Surcharge on income taxed under sections 196, 197 and 198 of the Income-tax Act, 2025 (sections 111A, 112 and 112A of the 1961 Act) and on dividend income is capped at 15 percent, so the 25 and 37 percent rates do not apply to that part of the income.

How to calculate it

  1. 1

    Add up total income and apply the standard deduction

    Aggregate salary, house property, business, capital gains and other sources. Salaried taxpayers and pensioners get a standard deduction of ₹75,000 in the new regime and ₹50,000 in the old regime. Capital gains taxed at special rates are kept aside and taxed separately, not at slab rates.

  2. 2

    Pick the regime and apply the slab rates

    The new regime slabs for FY 2026-27 run nil up to ₹4,00,000, then 5, 10, 15, 20, 25 and 30 percent in ₹4 lakh bands up to ₹24,00,000. The old regime is nil up to ₹2,50,000, 5 percent to ₹5,00,000, 20 percent to ₹10,00,000 and 30 percent above that, with a ₹3,00,000 exemption for residents aged 60 to 80 and ₹5,00,000 for those above 80.

  3. 3

    Apply the section 87A rebate

    In the new regime a resident individual with total income up to ₹12,00,000 gets a rebate of up to ₹60,000, which wipes out the slab tax. The rebate is not available against income taxed at the special capital-gains rates. In the old regime the rebate is up to ₹12,500 for total income up to ₹5,00,000.

  4. 4

    Add surcharge and test marginal relief

    Surcharge applies on the tax, not the income, once total income crosses ₹50 lakh. At each threshold, compare the increase in tax plus surcharge with the increase in income above the threshold; the excess is written off as marginal relief. Marginal relief also applies just above ₹12,00,000 in the new regime, so tax is limited to the amount by which income exceeds ₹12,00,000.

  5. 5

    Add 4 percent cess and settle the year

    Health and education cess at 4 percent is charged on income tax plus surcharge after marginal relief. Reduce TDS, TCS and advance tax already paid to arrive at the balance payable or refundable.

New regime slabs for FY 2026-27 (AY 2027-28), unchanged from FY 2025-26

New regime slabs for FY 2026-27 (AY 2027-28), unchanged from FY 2025-26
Total incomeRate
Up to ₹4,00,000Nil
₹4,00,001 to ₹8,00,0005%
₹8,00,001 to ₹12,00,00010%
₹12,00,001 to ₹16,00,00015%
₹16,00,001 to ₹20,00,00020%
₹20,00,001 to ₹24,00,00025%
Above ₹24,00,00030%

Worked example: salaried taxpayer, new regime, FY 2026-27

Salary income
₹14,00,000
Regime
New regime (default)
Standard deduction
₹75,000
Other income or deductions
Nil
  • Total income after standard deduction = ₹14,00,000 − ₹75,000 = ₹13,25,000
  • Up to ₹4,00,000: nil
  • ₹4,00,000 to ₹8,00,000 at 5% = ₹20,000
  • ₹8,00,000 to ₹12,00,000 at 10% = ₹40,000
  • ₹12,00,000 to ₹13,25,000 at 15% = ₹18,750
  • Slab tax = ₹78,750; no rebate u/s 87A because total income exceeds ₹12,00,000
  • Surcharge = nil; cess at 4% on ₹78,750 = ₹3,150

Total tax payable = ₹81,900

Frequently asked questions

Under the new regime, income up to ₹4,00,000 is nil, then 5 percent to ₹8,00,000, 10 percent to ₹12,00,000, 15 percent to ₹16,00,000, 20 percent to ₹20,00,000, 25 percent to ₹24,00,000 and 30 percent above ₹24,00,000. Budget 2026 announced no change, so these are the same slabs that applied to FY 2025-26 (AY 2026-27). Health and education cess at 4 percent is added on top in both regimes.
The new regime is the default. It sits in section 202 of the Income-tax Act, 2025, which replaced section 115BAC of the 1961 Act from 1 April 2026. If you do nothing, your employer and the return utility compute tax under the new regime, and you must positively opt out to use the old regime. Taxpayers with business or professional income opt out through Form 10-IEA and can switch back only once.
For a resident individual in the new regime, yes, because the section 87A rebate of up to ₹60,000 cancels the slab tax on total income up to ₹12,00,000. A salaried taxpayer effectively gets ₹12,75,000 of gross salary tax free once the ₹75,000 standard deduction is counted. The rebate does not apply to income taxed at the special capital-gains rates, so short-term or long-term gains in your total income are still taxed.
Salaried taxpayers and pensioners get ₹75,000 under the new regime and ₹50,000 under the old regime. It is allowed against salary or pension income only, so it does not reduce business, rental or capital-gains income. Family pension has its own separate deduction.
When total income crosses ₹50 lakh, ₹1 crore or ₹2 crore, surcharge kicks in on the whole tax, which can make the extra tax larger than the extra income. Marginal relief caps the additional tax plus surcharge at the amount by which income exceeds the threshold, and the excess is waived. Cess at 4 percent is then computed on the reduced figure.
For a resident below 60, income up to ₹2,50,000 is nil, ₹2,50,001 to ₹5,00,000 is 5 percent, ₹5,00,001 to ₹10,00,000 is 20 percent and above ₹10,00,000 is 30 percent. The basic exemption is ₹3,00,000 for residents aged 60 to 80 and ₹5,00,000 for those above 80. The old regime keeps chapter VI-A deductions, HRA and the higher surcharge band of 37 percent above ₹5 crore.
No. The Act took effect from 1 April 2026 and renumbers and restructures the law rather than repricing it, so the slabs, rebate, standard deduction and surcharge rates are the same. The visible changes are the single Tax Year concept replacing Previous Year and Assessment Year, and new section numbers for provisions you may know by their 1961 numbers.

Sources

Rates and rules on this page come from the following. This is a working aid, not professional advice: confirm anything material with your Chartered Accountant before you act on it.

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