⚠️ Disclaimer: This calculator provides an estimate based on standard tax slabs for FY 2026-27 (AY 2027-28). It does not account for all possible deductions, exemptions, or special income types (capital gains, crypto, etc.). For accurate tax filing, please consult a Chartered Accountant or use the official Income Tax Department calculator.
Income Tax Slabs — FY 2026-27
New Tax Regime (Default Regime)
| Income Range | Tax 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% |
Standard deduction of ₹75,000 applies under the New Regime. Additionally, under Section 87A, total tax liability becomes nil for income up to ₹12,00,000 (effectively up to ₹12,75,000 with standard deduction) due to a rebate of up to ₹60,000.
Old Tax Regime
| Income Range | Tax Rate |
|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
The Old Regime allows deductions under Section 80C (up to ₹1.5 lakh), 80D (health insurance), HRA exemption, and home loan interest (up to ₹2 lakh) — making it beneficial for individuals with high eligible deductions.
Example Calculation
Example: Annual Income of ₹12,00,000
Under the New Regime — with the standard deduction of ₹75,000, taxable income becomes ₹11,25,000. Tax is calculated slab-wise, but the Section 87A rebate brings total tax liability to ₹0 for income up to ₹12 lakh.
Under the Old Regime — assuming deductions of ₹1,50,000 (80C) + ₹50,000 (HRA) + ₹25,000 (80D), taxable income becomes ₹9,75,000. Tax works out to approximately ₹1,17,000 plus cess.
In this case, the New Regime saves significantly more tax.
Frequently Asked Questions
Q: Which regime is better — old or new?
It depends entirely on your deductions. If your total eligible deductions (80C, HRA, home loan interest, 80D) exceed approximately ₹3.5-4 lakh, the Old Regime usually works out better. If you have few deductions, the New Regime's lower rates and ₹12 lakh rebate threshold make it more beneficial for most salaried individuals.
Q: Is income up to ₹12 lakh really tax-free under the New Regime?
Yes, effectively. Through the Section 87A rebate (up to ₹60,000) combined with the ₹75,000 standard deduction, individuals with income up to ₹12,75,000 pay zero tax under the New Regime. Above this threshold, tax applies on the full income as per slab rates, not just the excess amount.
Q: Can I claim HRA under the New Regime?
No. HRA exemption, along with most other deductions like 80C and home loan interest on self-occupied property, is not available under the New Regime. Only the standard deduction of ₹75,000 and a few specific exemptions apply.
Q: How many times can I switch between tax regimes?
Salaried individuals with no business income can switch between Old and New regime every financial year when filing their ITR. Individuals with business or professional income can switch only once in their lifetime back to the Old Regime after opting for the New Regime.
Q: Does this calculator include cess and surcharge?
This calculator includes the standard 4% Health and Education Cess on the tax amount. It does not calculate surcharge, which applies only to very high incomes (above ₹50 lakh) at varying rates. For income above this threshold, consult a tax professional for precise calculation.