Income Tax Calculator India FY 2026-27 (Old vs New)
Compare tax under the new and old regimes for FY 2026-27 (AY 2027-28), including standard deduction, 87A rebate with marginal relief, surcharge and 4% cess.
Step-by-step working
- Rates: FY 2026-27 (verified, versioned data)
- New regime taxable income = ₹15,00,000 − standard deduction = ₹14,25,000
- Slab tax = ₹93,750; rebate u/s 87A = ₹0
- Surcharge = ₹0; cess 4% = ₹3,750
- New regime total = ₹97,500 (old regime computed the same way with its own slabs and deductions)
| Item | New regime | Old regime |
|---|---|---|
| Taxable income | ₹14,25,000 | ₹13,00,000 |
| Tax on slabs | ₹93,750 | ₹2,02,500 |
| Rebate u/s 87A | ₹0 | ₹0 |
| Surcharge | ₹0 | ₹0 |
| Health & education cess (4%) | ₹3,750 | ₹8,100 |
| Total tax | ₹97,500 | ₹2,10,600 |
Mathematical Formula
Overview & Explanation
Finance Bill 2026 proposed no change in personal income-tax rates; FY 2025-26 slabs continue. The new regime is the default; you may opt for the old regime if your deductions make it cheaper.
How It Works
- Subtract the standard deduction (salaried) and, for the old regime, your deductions.
- Apply the slab rates.
- Apply the Section 87A rebate (with marginal relief in the new regime).
- Add surcharge for incomes above ₹50 lakh, with marginal relief.
- Add 4% health and education cess.
Practical Applications
- Choosing a regime at the start of the year.
- Estimating TDS and advance tax.
Example 1: Salaried, ₹12.75 lakh gross
Taxable ₹12 lakh — nil tax under the new regime.
Inputs
Gross annual income (₹): 1275000 · Salaried / pensioner?: Yes (apply standard deduction) · Old-regime deductions (₹): 150000
Step 1
Rates: FY 2026-27 (verified, versioned data)
Step 2
New regime taxable income = ₹12,75,000 − standard deduction = ₹12,00,000
Step 3
Slab tax = ₹60,000; rebate u/s 87A = ₹60,000
Step 4
Surcharge = ₹0; cess 4% = ₹0
Step 5
New regime total = ₹0 (old regime computed the same way with its own slabs and deductions)
Tax under new regime
Result
Example 2: Salaried, ₹20 lakh with ₹3.75 lakh deductions
Old vs new comparison.
Inputs
Gross annual income (₹): 2000000 · Salaried / pensioner?: Yes (apply standard deduction) · Old-regime deductions (₹): 375000
Step 1
Rates: FY 2026-27 (verified, versioned data)
Step 2
New regime taxable income = ₹20,00,000 − standard deduction = ₹19,25,000
Step 3
Slab tax = ₹1,85,000; rebate u/s 87A = ₹0
Step 4
Surcharge = ₹0; cess 4% = ₹7,400
Step 5
New regime total = ₹1,92,400 (old regime computed the same way with its own slabs and deductions)
Tax under new regime
Result
How it's calculated & sources
New regime (FY 2026-27): 0–4L nil, 4–8L 5%, 8–12L 10%, 12–16L 15%, 16–20L 20%, 20–24L 25%, above 24L 30%; standard deduction ₹75,000; rebate makes tax nil up to ₹12L taxable income with marginal relief. Old regime: 0–2.5L nil (3L for 60+, 5L for 80+), 2.5–5L 5%, 5–10L 20%, above 10L 30%; standard deduction ₹50,000; 87A rebate up to ₹12,500 for income ≤ ₹5L. Surcharge 10%/15%/25% above ₹50L/1Cr/2Cr (old regime 37% above ₹5Cr) with marginal relief; cess 4%.
Frequently Asked Questions
Did income tax slabs change for FY 2026-27?
Is income up to ₹12 lakh tax-free?
What is marginal relief?
Which regime is better?
Does this include capital gains?
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