How to use the Income Tax Calculator FY 2026-27 (New vs Old Regime)
- Enter your annual salary and any other income.
- Choose your age group (it changes old-regime exemption limits).
- Enter your deductions. They only apply to the old regime.
- Compare total tax and monthly TDS in both regimes.
New tax regime slabs FY 2026-27
| 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% |
Rebate under Section 87A: up to ₹60,000, so there is no tax up to ₹12 lakh taxable income. Standard deduction for salaried people: ₹75,000.
Old tax regime slabs FY 2026-27
| Taxable income | Below 60 | 60-79 | 80+ |
|---|---|---|---|
| Up to ₹2.5 lakh | Nil | Nil | Nil |
| ₹2.5 - 3 lakh | 5% | Nil | Nil |
| ₹3 - 5 lakh | 5% | 5% | Nil |
| ₹5 - 10 lakh | 20% | 20% | 20% |
| Above ₹10 lakh | 30% | 30% | 30% |
Rebate under 87A: ₹12,500, so there is no tax up to ₹5 lakh taxable income. Standard deduction: ₹50,000. A 4% health and education cess applies in both regimes, and surcharge applies above ₹50 lakh.
Which regime should you choose?
For most salaried people earning up to about ₹15 lakh, the new regime is cheaper because of its lower rates and higher rebate. The old regime can still win if your deductions (80C, 80D, HRA, home loan interest, NPS) together exceed roughly ₹4-5 lakh a year. Enter your real numbers above to see the exact difference.
Frequently asked questions
What are the income tax slabs for FY 2026-27?
Budget 2026 did not change the slabs. The new regime has rates from nil (up to ₹4 lakh) to 30% (above ₹24 lakh). The old regime has nil up to ₹2.5 lakh, then 5%, 20% and 30%.
Can I switch between the new and old regime?
Salaried individuals without business income can choose the regime every year while filing the return. People with business income can switch back to the old regime only once.
Is the 87A rebate available on capital gains?
The rebate does not apply to tax on special-rate income such as short-term capital gains on shares under Section 111A or long-term gains under Section 112A.
What is the standard deduction in 2026-27?
₹75,000 in the new regime and ₹50,000 in the old regime, for salaried employees and pensioners.
These tools give estimates for general guidance and are not financial or tax advice. Rates and rules can change; check official sources before making decisions.