Income tax calculator FY 2026-27 — new vs old regime
Find out your tax under both regimes in seconds, with the ₹12 lakh rebate, marginal relief, surcharge and cess worked out for you. Updated for Budget 2026 and the Income-tax Act, 2025.
Tax slabs for FY 2026-27
| Income (new regime) | 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% |
Rebate makes the tax nil when taxable income is up to ₹12 lakh (maximum ₹60,000). Salaried people get a ₹75,000 standard deduction, so salary up to ₹12.75 lakh is tax-free. Surcharge is 10% above ₹50 lakh, 15% above ₹1 crore and 25% above ₹2 crore (the new regime caps it at 25%). A 4% health and education cess is added on top.
| Income (old regime, below 60) | Rate |
|---|---|
| Up to ₹2,50,000 (₹3 lakh for 60+, ₹5 lakh for 80+) | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Under the old regime the rebate makes tax nil up to ₹5 lakh of taxable income, the standard deduction is ₹50,000, and surcharge goes up to 37% above ₹5 crore.
Questions people ask
Which tax regime is better for FY 2026-27?
For most salaried people with few deductions the new regime is cheaper: income up to ₹12 lakh (₹12.75 lakh for salaried, after the ₹75,000 standard deduction) is tax-free. The old regime can win if you claim large deductions such as HRA, home loan interest and 80C together. The calculator compares both for your numbers.
Did Budget 2026 change the tax slabs?
No. Budget 2026 kept the FY 2025-26 slabs and rebate for FY 2026-27. The new Income-tax Act, 2025 applies from 1 April 2026, and calls the year a 'tax year'.
What is marginal relief at ₹12 lakh?
If your taxable income is a little above ₹12 lakh under the new regime, your tax cannot be more than the income above ₹12 lakh. For example, at ₹12.25 lakh the tax is ₹25,000 plus cess, not ₹63,750.
Can I switch regimes every year?
Salaried people without business income can choose every year while filing the return. If you have business or professional income, switching back to the new regime after leaving it is allowed only once.
Does this include capital gains?
No. Capital gains on shares, mutual funds and property have their own rates. Add them separately or talk to us for a full computation.
This calculator is for planning. Your final tax depends on your full return; we're happy to check it for you. Also see our GST calculator and due-date calendar.
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