Income Tax Calculator FY 2026-27

Income tax slabs for FY 2026-27: new regime

Under the new regime, tax is worked out on your income after only the standard deduction. Under the new regime almost all deductions are gone — the main exception is your employer's contribution to NPS. The slabs for FY 2026-27 are:

• Up to ₹4,00,000 — 0%
• ₹4,00,001 to ₹8,00,000 — 5%
• ₹8,00,001 to ₹12,00,000 — 10%
• ₹12,00,001 to ₹16,00,000 — 15%
• ₹16,00,001 to ₹20,00,000 — 20%
• ₹20,00,001 to ₹24,00,000 — 25%
• Above ₹24,00,000 — 30%

Because of the rebate, income up to ₹12 lakh is effectively tax-free in most cases. Salaried people get that protection even at ₹12.75 lakh, thanks to the ₹75,000 standard deduction. Just above those limits, a small amount of tax kicks in, and this calculator applies the marginal relief so the bill stays fair around the cutoff.

Old regime tax slabs

The old regime lets you claim a long list of deductions, but the rates are higher. For a person below 60, the slabs are:

• Up to ₹2,50,000 — 0%
• ₹2,50,001 to ₹5,00,000 — 5%
• ₹5,00,001 to ₹10,00,000 — 20%
• Above ₹10,00,000 — 30%

Senior citizens get a higher basic exemption. It rises to ₹3 lakh for people aged 60 to 79 and ₹5 lakh for people aged 80 and above; the brackets above those limits stay the same. The rebate in the old regime is limited to ₹12,500 and only applies when taxable income is ₹5 lakh or less.

Old vs new regime: which should you choose?

The new regime wins on simplicity — lower rates and only the standard deduction. The old regime wins if you genuinely invest — provident funds, ELSS, life insurance, health cover, HRA and home loan interest can pull your taxable income down by a lot, and that can beat the new regime's lower rates.

There is no fixed rule that works for everyone. The crossover point depends on your salary, your age and how much you actually invest. That is why this calculator runs both regimes side by side, applies the standard deduction to each, and tells you which one leaves more money in your pocket.

What changed this year?

Budget 2026 did not change the slabs, the rebate limit or the 4% cess — the numbers are exactly the same as the previous year. The real change is one of language: the new Income Tax Act, 2025 took effect from 1 April 2026 and uses the term "Tax Year" instead of financial year and assessment year. For most taxpayers the calculation itself works the same way.

Tips to reduce your tax legally

• Add up everything you invest or pay before choosing a regime — provident fund contributions, ELSS, life insurance premiums, health premiums, HRA and home loan interest. Only if that total is substantial will the old regime beat the new one.
• If you are salaried, check that the standard deduction is applied in the salary certificate or tax statement your employer gives you — it is an automatic, no-document deduction worth paying attention to.
• Ask your employer to deduct your NPS contribution from your salary. It lowers your taxable salary throughout the year and builds retirement savings at the same time.
• Plan early in the year instead of scrambling in March, so investments are spread out and eligible no matter which regime you file under.
• Keep records of every claim — bank statements, premium receipts and investment proofs — so filing time is quick and error-free.