Income Tax Calculator — FY 2026–27 (AY 2027–28)
Compare the new and old regimes. Add each exemption and deduction separately — every field applies its own statutory cap.
Employer NPS contribution — 80CCD(2) ₹0
Salary exemptions ₹0
Investments and savings ₹0
Health and medical ₹0
Loans, housing and giving ₹0
New regime Lower tax
- Total income
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- Less deductions
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- Taxable income
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- Tax before rebate
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- 87A rebate
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- Cess at 4%
- —
- Total tax
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Old regime Lower tax
- Total income
- —
- Less deductions
- —
- Taxable income
- —
- Tax before rebate
- —
- 87A rebate
- —
- Cess at 4%
- —
- Total tax
- —
Surcharge and marginal relief are included. Section 87A marginal relief is applied just above ₹12 lakh in the new regime. Capital gains taxed at special rates are not covered. This is an estimate for salaried individuals, not tax advice.
Work out your income tax for FY 2026–27
The new tax regime is now the default. For most salaried people the only question that matters is whether the old regime still costs less once you count everything you can genuinely claim, and that answer changes with your rent, your home loan and how much of your 80C limit you actually use. The calculator above works both regimes side by side on the same income, applies the statutory cap on every deduction as you enter it, and tells you the exact level of deductions at which the old regime would overtake the new one.
How to use it
It updates as you type. Nothing is submitted anywhere and you do not need to enter your name or email.
- Enter your gross annual salary, and any other income such as interest, rent or freelance earnings.
- Choose your age band. Under the old regime the basic exemption rises at 60 and again at 80, and the 80D and 80TTB limits increase with it. The new regime uses one set of slabs for everyone.
- Leave “I am salaried” ticked to apply the standard deduction: ₹75,000 in the new regime, ₹50,000 in the old.
- Open Employer NPS contribution if your employer contributes to NPS. This is one of the very few deductions the new regime still allows, which is why it sits above the old-regime sections.
- Open each old-regime section and enter what you can claim: salary exemptions such as HRA and LTA, investments under 80C and 80CCD(1B), health cover under 80D, and home or education loan interest. Each field shows its own cap, and anything entered above the cap is flagged rather than silently counted.
- Read the two cards. The cheaper regime is highlighted, and the line beneath tells you how much more in deductions the old regime would need to catch up.
Which regime should you actually choose?
Since the new regime became the default, the only question most salaried people need answered is which one costs less on their own numbers. There is no general answer; it depends entirely on how much you can genuinely claim. The rough shape of it:
The new regime
Wider slabs, a ₹75,000 standard deduction and a rebate that makes income up to ₹12.75 lakh tax free for a salaried person. It allows almost no other deductions.
The old regime
Narrower slabs and a smaller ₹50,000 standard deduction, but lets you claim HRA, 80C, 80D, home loan interest and the rest.
What each regime still allows
| Relief | New regime | Old regime | Cap |
|---|---|---|---|
| Standard deduction | Yes | Yes | ₹75,000 new / ₹50,000 old |
| Employer NPS: 80CCD(2) | Yes | Yes | 14% of salary |
| HRA exemption | No | Yes | Least of three |
| LTA | No | Yes | Actual travel |
| 80C | No | Yes | ₹1,50,000 |
| Your NPS: 80CCD(1B) | No | Yes | ₹50,000 |
| 80D health insurance | No | Yes | ₹25,000, ₹50,000 if 60+ |
| 80TTA / 80TTB interest | No | Yes | ₹10,000, ₹50,000 if 60+ |
| Home loan interest: 24(b) | No | Yes | ₹2,00,000 self-occupied |
| 80E education loan interest | No | Yes | No cap, 8 years |
| Professional tax | No | Yes | ₹2,500 |
The slabs for FY 2026–27
| 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% |
| Old regime | 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% |
- Basic exemption rises to ₹3,00,000 at 60, and ₹5,00,000 at 80.
- Section 87A rebate: up to ₹12,500 where taxable income is ₹5 lakh or less.
- Health and education cess of 4% applies to both.
Two things most calculators get wrong
The ₹12 lakh cliff is not a cliff
The 87A rebate of up to ₹60,000 applies where taxable income does not exceed ₹12 lakh. Read literally, earning one rupee more would cost you tens of thousands in tax. It does not work that way. Marginal relief caps your tax at the amount by which your income exceeds ₹12 lakh. On a taxable income of ₹12.25 lakh the tax is ₹25,000 plus cess (the ₹25,000 of excess income), not the ₹63,750 the slabs alone would produce. The calculator applies this.
Surcharge has marginal relief too
Above ₹50 lakh a surcharge applies: 10% to ₹1 crore, 15% to ₹2 crore, 25% to ₹5 crore and 37% above, though the new regime caps it at 25%. At each threshold, marginal relief again ensures the extra tax never exceeds the extra income. Most free calculators either ignore surcharge entirely or apply it without relief, and both produce a materially wrong number for higher earners. This one includes it.
A worked comparison
A salaried person on ₹12,00,000 with ₹1,50,000 of 80C:
New regime: tax nil
- Taxable income₹11,25,000
- Tax on slabs₹52,500
- 87A rebatewipes it out
- Tax payableNil
Old regime: ₹1,17,000
- Taxable income₹10,00,000
- Tax on slabs₹1,12,500
- Plus 4% cess₹4,500
- Tax payable₹1,17,000
Frequently asked questions
Is income up to ₹12 lakh really tax free?
Under the new regime, yes — and up to ₹12.75 lakh if you are salaried, because the ₹75,000 standard deduction brings taxable income down to ₹12 lakh, where the 87A rebate of up to ₹60,000 cancels the tax entirely.
What happens if I earn slightly more than ₹12 lakh?
Marginal relief applies. Your tax cannot exceed the amount by which your income crosses ₹12 lakh, so there is no cliff — the liability rises gradually rather than jumping.
Which deductions can I claim in the new regime?
Very few. The standard deduction of ₹75,000 and your employer’s NPS contribution under 80CCD(2) are the ones that matter for most salaried people. HRA, 80C, 80D and home loan interest are not available.
Can I switch between the old and new regime?
A salaried person without business income can choose afresh each year when filing. If you have business income the choice is far more restricted and switching back is generally once in a lifetime.
Does this calculator include surcharge?
Yes, including marginal relief at every threshold, and the new regime’s 25% cap. Income taxed at special rates — capital gains, for instance — is not covered.
Do senior citizens get different slabs?
Under the old regime, yes: the basic exemption rises to ₹3,00,000 at 60 and ₹5,00,000 at 80, and the 80D and 80TTB limits increase. The new regime has one set of slabs for all ages. Set your age in the calculator and it applies the right ones.
The calculator gives a general estimate from the figures you enter and the tax rules for FY 2026–27 as they stood when it was last checked. It is not tax advice; for your own return or investments, check with your tax consultant.
Doing this for a whole payroll
Calculating your own tax once a year is arithmetic. Doing it for every employee, every month, as declarations arrive and salaries change, is a system.
TDS for every employee, every monthIn HivePayroll employees submit their own investment declarations, the form filters what it offers by their regime, and the accepted figures flow straight into the monthly TDS deduction, the employee’s own tax sheet and the quarterly Form 138 (Form 24Q until 2025-26). See TDS and income tax management. HivePayroll is free for up to 10 employees.
