Income tax calculator 2026-27: new vs old regime

Enter your salary and other income and see your tax under both regimes side by side, with cess, rebate and surcharge already worked in.

Tax year 2026-27 is the first under the Income-tax Act, 2025. The slabs did not change, but the sections did: 80C is now section 123, 87A is section 156 and 115BAC is section 202.

How it's calculated

New regime (the default): your salary gets a standard deduction of ₹75,000. Almost no other deduction or exemption applies, not even HRA.
The new slabs are nil up to ₹4 lakh, then 5%, 10%, 15%, 20% and 25% for every ₹4 lakh step, and 30% above ₹24 lakh.
If your taxable income is up to ₹12,00,000, the section 156 rebate of up to ₹60,000 brings your tax to zero. Just above that line, marginal relief makes sure you never pay more tax than the income you earned above it.
Old regime: you choose it in your return. The standard deduction is ₹50,000, and you can claim section 123 investments up to ₹1,50,000, HRA, health insurance, home loan interest and more.
The old slabs are nil up to ₹2.5 lakh (₹3 lakh from age 60, ₹5 lakh from age 80), 5% up to ₹5 lakh, 20% up to ₹10 lakh and 30% above. The rebate is up to ₹12,500 if taxable income is up to ₹5,00,000.
Surcharge applies above ₹50 lakh, with marginal relief. Then 4% Health and Education Cess is added on the tax plus surcharge.

An example

On a ₹15 lakh salary, the new regime taxes ₹14.25 lakh and the bill is ₹97,500 with cess.

In the old regime, with ₹1.5 lakh of section 123 investments, taxable income is ₹13 lakh and the tax is ₹2,10,600. The new regime saves ₹1,13,100.

Frequently asked questions

Is a salary of ₹12.75 lakh really tax free?

Yes, in the new regime. After the ₹75,000 standard deduction your taxable income is ₹12 lakh, and the rebate cancels the ₹60,000 of slab tax. Income taxed at special rates, such as capital gains, is treated separately.

When does the old regime work out better?

Only when your deductions are large: full section 123 investments, a big HRA exemption and home loan interest together. Enter yours above and the calculator shows which regime costs less.

Can I switch between regimes every year?

If you have no business or professional income, yes: you pick the old regime with your return each year. With business income, the choice is limited and can be withdrawn only once.

Why is my monthly TDS different from this result?

Your employer deducts tax on its estimate of your yearly salary and the regime you declared. Bonuses, a job change or proofs submitted late can make the monthly figure move.

Key terms

Tax year: The year from 1 April to 31 March. It replaces the old previous year and assessment year.
Standard deduction: A flat amount taken off salary income without any proof.
Cess: Health and Education Cess, charged on top of income tax and surcharge.
Surcharge: An extra percentage of tax for incomes above ₹50 lakh.