Income Tax Calculator 2026-27: New vs Old Regime
Work out income tax for Tax Year 2026-27 under both the new and the old regime, with the rebate, standard deduction, surcharge and cess applied.
Researched by Mirza Seraj BaigFacts last checked against official sources on 12 September 2026Gross salary or other ordinary income for the year, before any deduction.
Salaried standard deduction: ₹75,000 in the new regime, ₹50,000 in the old.
Total of section 123 (former 80C, up to ₹1,50,000), health insurance, HRA exemption and similar. Ignored by the new regime.
Lower tax: new regime
₹97,500
- New regime — taxable income
- ₹14,25,000
- New regime — total tax
- ₹97,500
- Old regime — taxable income
- ₹13,00,000
- Old regime — total tax
- ₹2,10,600
- You save with the lower one
- ₹1,13,100
An estimate for Tax Year 2026-27 on ordinary income, including surcharge and 4% cess. It does not model capital gains, dividends or income with special rates. Confirm your liability on incometax.gov.in or with a tax professional.
How is income tax calculated for 2026-27?
From 1 April 2026 the Income-tax Act, 2025 replaced the Income-tax Act, 1961, and the year that began that day is called Tax Year 2026-27. The Budget of February 2026 changed no tax rate, rebate or standard deduction.
The new regime is the default. Its rates are lower and its rebate makes income up to ₹12 lakh tax-free, but it allows few deductions. The old regime keeps deductions such as section 123 (the former section 80C) and HRA exemption, at higher rates. This calculator works out both.
Paying rent under the old regime? Work out the exempt part with the HRA calculator.
How is Income Tax calculated?
New regime (the default, section 202 of the Income-tax Act, 2025): nil up to ₹4 lakh, then 5%, 10%, 15%, 20% and 25% on each further ₹4 lakh, and 30% above ₹24 lakh, after a ₹75,000 standard deduction on salary. A rebate under section 156 cancels tax of up to ₹60,000 where income does not exceed ₹12 lakh, with marginal relief just above it. Old regime: nil up to ₹2.5 lakh (₹3 lakh from 60 to 79, ₹5 lakh at 80 or above), 5% up to ₹5 lakh (not for those 80 or above), 20% up to ₹10 lakh and 30% above, after a ₹50,000 standard deduction and your deductions, with a rebate of up to ₹12,500 where income does not exceed ₹5 lakh. Surcharge of 10%, 15% or 25% applies above ₹50 lakh, ₹1 crore and ₹2 crore (and 37% above ₹5 crore in the old regime only), with marginal relief. Health and education cess of 4% is added on tax plus surcharge.
Income tax example: ₹15 lakh salary in 2026-27
A salaried employee earning ₹15,00,000 takes the ₹75,000 standard deduction under the new regime, for taxable income of ₹14,25,000 and total tax, including 4% cess, of ₹97,500.
Under the old regime, with the ₹50,000 standard deduction and ₹1,50,000 of section 123 investments, taxable income is ₹13,00,000 and tax is ₹2,10,600. The new regime costs ₹1,13,100 less.
A salary of ₹12,75,000 pays ₹0 under the new regime: after the standard deduction taxable income is exactly ₹12,00,000, and the rebate cancels the tax on it.
Income tax by salary: new vs old regime, 2026-27
Salaried, below 60, with ₹1,50,000 of old-regime deductions. Totals include 4% cess.
| Annual salary | New regime tax | Old regime tax | Lower |
|---|---|---|---|
| ₹6,00,000 | ₹0 | ₹0 | Same |
| ₹8,00,000 | ₹0 | ₹33,800 | new regime |
| ₹10,00,000 | ₹0 | ₹75,400 | new regime |
| ₹12,00,000 | ₹0 | ₹1,17,000 | new regime |
| ₹12,75,000 | ₹0 | ₹1,40,400 | new regime |
| ₹15,00,000 | ₹97,500 | ₹2,10,600 | new regime |
| ₹18,00,000 | ₹1,50,800 | ₹3,04,200 | new regime |
| ₹20,00,000 | ₹1,92,400 | ₹3,66,600 | new regime |
| ₹25,00,000 | ₹3,19,800 | ₹5,22,600 | new regime |
| ₹30,00,000 | ₹4,75,800 | ₹6,78,600 | new regime |
| ₹50,00,000 | ₹10,99,800 | ₹13,02,600 | new regime |
Frequently asked questions
What are the new tax regime slabs for 2026-27?
Nil up to ₹4,00,000; 5% from ₹4,00,001 to ₹8,00,000; 10% to ₹12,00,000; 15% to ₹16,00,000; 20% to ₹20,00,000; 25% to ₹24,00,000; and 30% above ₹24,00,000. They are in section 202(1) of the Income-tax Act, 2025.
Is income up to ₹12 lakh tax-free in 2026-27?
Under the new regime, yes: the section 156 rebate cancels tax of up to ₹60,000 where total income does not exceed ₹12 lakh. For a salaried person, the ₹75,000 standard deduction means a salary of up to ₹12,75,000 pays no tax. Just above ₹12 lakh, marginal relief keeps the tax from exceeding the income over ₹12 lakh.
Did Budget 2026 change income tax slabs?
No. The Memorandum to the Finance Bill, 2026 states that no change is proposed in tax rates. The slabs, rebate and standard deduction for 2026-27 are the same as for 2025-26.
What is Tax Year 2026-27?
The Income-tax Act, 2025 replaced the 1961 Act on 1 April 2026. Income earned from that date, in financial year 2026-27, is referred to as Tax Year 2026-27. Returns for 2025-26 are still filed under the 1961 Act.
How much tax is payable on a ₹10 lakh salary in 2026-27?
₹0 under the new regime, where the ₹75,000 standard deduction and the rebate leave nothing to pay; ₹75,400 under the old regime with ₹1,50,000 of deductions.
How much tax is payable on a ₹20 lakh salary in the new regime?
₹1,92,400 including 4% cess, on taxable income of ₹19,25,000 after the standard deduction.