Income Tax Calculator FY 2026-27

From FY 2026-27, the New tax regime is the default for every individual taxpayer in India. Budget 2025 widened its slabs and raised the Section 87A rebate so that anyone with taxable income up to ₹12,00,000 pays zero tax. For salaried taxpayers, the ₹75,000 standard deduction effectively pushes the no-tax ceiling to ₹12,75,000 of gross salary — which is why the New regime now beats the Old regime for most middle-income filers.

The Old regime still wins for people with large eligible deductions: home loan interest under Section 24, principal repayment under 80C, life insurance and ELSS investments, HRA exemption on rent paid, mediclaim under 80D, NPS contributions under 80CCD(1B), and so on. As a rough rule of thumb, if your total such deductions add up to more than roughly ₹4.25 lakh and your income sits in the ₹12–24 lakh band, the Old regime can edge out — but you have to actually claim those deductions, with documentation. The New regime trades all of that away for lower and wider slabs, so the math depends on your actual situation year to year.

One nuance the calculator handles is the marginal relief built into Section 87A. If your taxable income is just above ₹12 lakh, the rebate phases out so that you don't pay more in tax than the amount by which your income exceeds the threshold. We also apply the 4% Health and Education cess on tax after rebate. Senior citizens (60–80) and super-seniors (80+) only get a higher basic exemption under the Old regime — the New regime slabs are age-neutral. Switching between regimes is allowed every year for salaried taxpayers, so revisit this comparison at the start of each financial year before submitting your tax declaration to HR.