Your income
Old regime deductions and HRA (optional)
Result
*In-hand = gross salary minus income tax and professional tax, before employee PF and other payroll deductions.
Slab-by-slab working
Income tax slabs for FY 2026-27 (Tax Year 2026-27)
Budget 2026 left individual slab rates, the 87A rebate and the standard deduction unchanged, so FY 2025-26 and Tax Year 2026-27 use the same numbers. What changed is the law: from 1 April 2026 the Income-tax Act, 2025 replaced the 1961 Act, "Tax Year" replaced the FY/AY pair, and section numbers moved (the 87A rebate is now section 156 and the new-regime slabs are in section 202).
| New regime: taxable income | 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% |
New regime: ₹75,000 standard deduction for salaried people, and a rebate of up to ₹60,000 when taxable income is ₹12,00,000 or less. That makes a salary of up to ₹12,75,000 tax-free. Just above ₹12 lakh, marginal relief caps the tax at the amount your income exceeds ₹12 lakh.
| Old regime: taxable income | Below 60 | 60 to 79 | 80+ |
|---|---|---|---|
| Up to ₹2,50,000 | Nil | Nil | Nil |
| ₹2,50,001 – ₹3,00,000 | 5% | Nil | Nil |
| ₹3,00,001 – ₹5,00,000 | 5% | 5% | Nil |
| ₹5,00,001 – ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
Old regime: ₹50,000 standard deduction, a rebate of up to ₹12,500 when taxable income is ₹5,00,000 or less, and deductions such as 80C, 80D, HRA and home loan interest.
Both regimes: surcharge of 10% above ₹50 lakh, 15% above ₹1 crore and 25% above ₹2 crore (above ₹5 crore it stays 25% in the new regime and is 37% in the old), with marginal relief at each threshold. A 4% health and education cess is added on top.
HRA: four more cities get 50% from Tax Year 2026-27
Under rule 279 of the Income-tax Rules, 2026, HRA exemption is the least of: HRA received, rent paid minus 10% of basic + DA, and 50% of basic + DA in Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru (40% elsewhere). For FY 2025-26 only Mumbai, Kolkata, Delhi and Chennai got 50%. HRA is exempt only in the old regime. If you rent in Bengaluru, Hyderabad, Pune or Ahmedabad, check the comparison again, because the old regime may now come out ahead.
How to use this income tax calculator
- Pick the year and your age group. Senior and super-senior citizens get a higher exemption only in the old regime.
- Enter your annual gross salary (CTC minus employer PF and gratuity is a good start) and any other income.
- Open Old regime deductions to add HRA, 80C, 80D, NPS and home loan interest. The calculator applies each legal cap for you.
- Read the verdict. If the new regime wins, the "break-even" line tells you how many more rupees of deductions the old regime would need to match it.
Worked examples (Tax Year 2026-27, salaried, below 60)
| Gross salary | New regime tax | Old regime tax (no deductions) |
|---|---|---|
| ₹12,00,000 | ₹0 | ₹1,63,800 |
| ₹12,75,000 | ₹0 | ₹1,87,200 |
| ₹15,00,000 | ₹97,500 | ₹2,57,400 |
| ₹24,75,000 | ₹3,12,000 | ₹5,61,600 |
Frequently asked questions
Is income up to ₹12 lakh tax-free in FY 2026-27?
Yes, under the new regime. If your taxable income is ₹12,00,000 or less, the rebate (section 87A, now section 156 of the Income-tax Act, 2025) of up to ₹60,000 cancels the tax. Salaried people also get a ₹75,000 standard deduction, so a salary up to ₹12,75,000 pays no tax. The rebate is for residents only and does not cover special-rate income such as capital gains.
What happens if my income is just above ₹12 lakh?
Marginal relief applies. Your tax (before cess) cannot be more than the amount by which your taxable income exceeds ₹12 lakh. For example, taxable income of ₹12,10,000 pays ₹10,000 plus 4% cess, not the full ₹61,500 slab tax.
Did Budget 2026 change the income tax slabs?
No. Budget 2026-27 kept slab rates, surcharge, the rebate and the standard deduction the same, so Tax Year 2026-27 uses the same numbers as FY 2025-26. The Income-tax Act, 2025 took effect on 1 April 2026 and renamed sections, but did not change the rates.
Which is better, the old or the new tax regime?
For most salaried people the new regime gives lower tax unless their deductions are large. This calculator shows both figures and the break-even amount: how many more rupees of deductions (HRA, 80C, 80D, home loan interest and so on) the old regime would need to match the new regime.
Which cities get 50% HRA exemption from Tax Year 2026-27?
Rule 279 of the Income-tax Rules, 2026 gives 50% of basic + DA to Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru. Every other place gets 40%. HRA exemption is available only in the old regime.
Which deductions are allowed in the new regime?
The ₹75,000 standard deduction for salary, employer contribution to NPS under 80CCD(2) up to 14% of basic + DA, and a few others such as family pension. 80C, 80D, HRA and self-occupied home loan interest are not allowed.
How is surcharge calculated?
Surcharge is a percentage of income tax: 10% when taxable income exceeds ₹50 lakh, 15% above ₹1 crore and 25% above ₹2 crore. Above ₹5 crore the old regime charges 37% while the new regime stays at 25%. Marginal relief ensures crossing a threshold never costs more than the extra income. Cess of 4% is then added.
Is my data saved or uploaded?
No. All calculations run in your browser. If you use Copy link, the numbers are stored in the link itself, so only share it with people you trust.
Sources
- Income Tax Department: tax slabs, surcharge and 87A rebate for salaried individuals
- Income Tax Department: threshold limits (basic exemption, surcharge, rebate)
- Union Budget 2026-27: no change to individual slab rates, surcharge or rebate for Tax Year 2026-27
- Income-tax Rules, 2026 (G.S.R. 198(E), 20 March 2026), rule 279: HRA 50% cities
Rates last checked by ITCOH Tools on 21 October 2026.