Income tax calculator for FY 2026-27

Enter your income and see what you owe under both regimes, side by side. Every line of the calculation is shown — the slab tax, the section 87A rebate, marginal relief, surcharge and cess — so you can check it rather than take our word for it.

Rates in force for FY 2026-27 (AY 2027-28) under the Income-tax Act, 2025. Union Budget 2026 made no change to the slabs.

What tax you pay at each income level

These figures come from the same engine as the calculator above, computed when this page was built. The new regime column assumes the standard deduction and nothing else. The old regime column assumes the standard deduction plus ₹1,50,000 of deductions, which is what a typical salaried person with a full section 123 claim would have.

The ₹12 lakh cliff, and why it is not really a cliff

Under the new regime, taxable income up to ₹12,00,000 attracts no tax at all, because the section 87A rebate of ₹60,000 wipes it out. For someone on a salary, the standard deduction of ₹75,000 sits on top of that, so a gross salary of ₹12,75,000 pays nothing.

The obvious worry is what happens at ₹12,75,001. Taken literally, the rebate vanishes the moment you cross the line, and the slab tax of ₹60,150 lands in full — a ₹60,000 tax bill triggered by one extra rupee of salary.

That is not what happens, because marginal relief applies. Above the threshold, your tax before cess is capped at the amount by which your taxable income exceeds ₹12,00,000. Earn ₹1,000 over and you pay ₹1,000 plus 4% cess — ₹1,040, not ₹62,556. The relief keeps working until roughly ₹12,70,588 of taxable income, at which point ordinary slab tax is lower anyway and the relief stops mattering.

The calculator above applies this automatically. A surprising number of free calculators do not, which is why they show a frightening jump that would never appear on a real assessment.

Which regime should you choose?

There is no universal answer, which is exactly why the calculator shows both. The rule of thumb: the old regime only wins once your deductions are large. With the new regime's wider slabs and larger standard deduction, you generally need substantial home loan interest, a full section 123 claim and HRA in a metro before the old regime pulls ahead.

Two things the rule of thumb misses, and both are worth checking properly: the old regime's surcharge runs to 37% against the new regime's 25%, which matters above ₹5 crore; and senior citizens get a higher exemption limit in the old regime but nothing extra in the new one.

When we prepare a return we calculate it both ways before filing, and file whichever is lower. That is part of the ₹499, not an extra.

What this calculator does not do

Being honest about the edges is the point. This tool covers salary, pension and ordinary income against the current slabs. It does not handle capital gains at their special rates, income taxed at concessional rates, relief under section 89 for arrears, foreign tax credit, or set-off of brought-forward losses. If any of those apply to you, the figure above is a starting point rather than an answer — send us the documents and we will work it out properly.