Income Tax Calculator (FY 2026-27)
Calculate income tax under the new regime (default) and old regime for FY 2026-27 (AY 2027-28). Instant, free, accurate.
Income Details
Tax (New Regime, FY 2026-27)
Total Tax Payable
₹97,500
Taxable Income
₹14,25,000
Tax Before Rebate
₹93,750
Rebate 87A
₹0
Surcharge
₹0
Cess (4%)
₹3,750
Effective Rate
6.50%
Monthly Tax
₹8,125
Net Income
₹14,02,500
For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.
What is income tax in India?
Income tax is a direct tax levied on the annual income of individuals and entities under the Income-tax Act, 1961, administered by the Central Board of Direct Taxes (CBDT). Salaried residents pay tax on the aggregate of salary, house property, capital gains, business and other sources — after applying the deductions and rebates allowed under the regime they opt into. The official rules for FY 2026-27 (AY 2027-28) are published at incometaxindia.gov.in.
New Regime slabs — FY 2026-27 (AY 2027-28)
| Income | Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4L – 8L | 5% |
| ₹8L – 12L | 10% |
| ₹12L – 16L | 15% |
| ₹16L – 20L | 20% |
| ₹20L – 24L | 25% |
| Above ₹24L | 30% |
- Standard deduction of ₹75,000 for salaried taxpayers and pensioners
- Rebate u/s 87A of up to ₹60,000 — makes income up to ₹12L effectively tax-free
- 4% Health & Education Cess on the tax plus surcharge
- Surcharge 10/15/25% above ₹50L / ₹1Cr / ₹2Cr (37% cap removed under new regime)
How tax is calculated
Tax is computed slab-by-slab on taxable income, then rebate, surcharge, and cess are applied:
Tax = slab tax − 87A rebate + surcharge + 4% cess
The slabs are marginal — a ₹100 increase above ₹12L is taxed only at the next slab, not on the whole salary. The ₹60,000 rebate under section 87A phases out immediately above ₹12L of taxable income, which creates a small marginal relief band from ₹12L to roughly ₹12.75L.
Worked example — ₹15 lakh CTC, new regime
Gross salary ₹15,00,000 minus standard deduction ₹75,000 = taxable income ₹14,25,000. Tax: Nil on first ₹4L + 5% on ₹4L (₹20,000) + 10% on ₹4L (₹40,000) + 15% on ₹2.25L (₹33,750) = ₹93,750. No 87A rebate (income above ₹12L). Add 4% cess of ₹3,750 → final liability ₹97,500, or about 6.5% effective rate. Under the old regime, the same salary with ₹1.5L under 80C and ₹25,000 under 80D would owe roughly ₹1,79,400 — so the new regime saves ~₹82,000 here.
Regulatory context
- Section 115BAC governs the new regime (default since FY 2023-24)
- Section 87A rebate raised to ₹60,000 by Finance Act 2025
- Standard deduction under section 16(ia) is ₹75,000 (new) / ₹50,000 (old)
- Chapter VI-A deductions (80C to 80U) remain available only under the old regime
- ITR filing deadline for non-audit individuals: 31 July following the financial year
Common mistakes
- Forgetting to opt for the old regime in time. Salaried taxpayers can switch at filing; business income filers need Form 10-IEA and can only switch once.
- Confusing gross and taxable income. Tax is on taxable income after standard deduction, not on CTC.
- Ignoring surcharge on capital gains. LTCG and STCG have their own surcharge cap of 15%.
- Missing the 4% cess. It applies on top of tax + surcharge, not just tax.
- Claiming HRA under the new regime. HRA, LTA, and most 80C deductions are disallowed.
Related calculators and reading
See also: Old vs New Regime Calculator, HRA Exemption Calculator, Salary & In-hand Calculator, TDS Calculator, glossary: Section 80C.
Common questions about Income Tax
What are the new regime tax slabs for FY 2026-27?+
Up to ₹4L: Nil • ₹4L–8L: 5% • ₹8L–12L: 10% • ₹12L–16L: 15% • ₹16L–20L: 20% • ₹20L–24L: 25% • Above ₹24L: 30%. Plus 4% Health and Education Cess on total tax. Surcharge applies above ₹50L.
How is income up to ₹12 lakh effectively tax-free?+
Under the new regime for FY 2026-27, a rebate of up to ₹60,000 applies under Section 87A if taxable income is up to ₹12L. Add the ₹75,000 standard deduction for salaried, and a salary of up to ₹12.75 lakh pays zero tax.
What is the standard deduction for salaried employees?+
Under the new regime: ₹75,000 (raised from ₹50,000 in Budget 2024). Under the old regime: ₹50,000. Applies to salary income only — not freelancers or business income.
Which deductions are NOT available in the new regime?+
The new regime removes most deductions: 80C (PPF/ELSS/life insurance/home loan principal), 80D (health insurance), 80G (donations), HRA exemption, LTA, home loan interest u/s 24(b), education loan interest 80E, NPS 80CCD(1B). Only standard deduction and employer NPS contribution 80CCD(2) remain.
When does income tax become payable in advance?+
If your total tax liability exceeds ₹10,000 in a financial year, you must pay advance tax in four installments: 15% by June 15, 45% by Sep 15, 75% by Dec 15, 100% by Mar 15. Senior citizens without business income are exempt.
How do I calculate tax if I have both salary and freelance income?+
Compute your total income first (salary + professional receipts minus 50% deemed expenses if under Section 44ADA). Apply the appropriate regime. Salary TDS is adjusted against total liability when filing ITR. You may owe self-assessment tax or get a refund depending on the mix.
When should I switch from new regime to old regime?+
If your eligible deductions exceed roughly ₹3.75 lakh total (HRA + 80C + 80D + home loan interest + NPS), old regime saves more. Salaried employees can switch regimes each year by declaring it to the employer/ITR. Business owners can switch only once in a lifetime.
Is agricultural income taxable?+
Pure agricultural income is exempt. However, if you have both agricultural + non-agricultural income, agricultural income is used to push your non-agri income into higher slabs (called "partial integration").
What is surcharge and when does it apply?+
Surcharge is an extra tax on high incomes. Under the new regime: 10% above ₹50L income, 15% above ₹1Cr, 25% above ₹2Cr. Maximum surcharge capped at 25% under new regime (37% under old, but reduced to 25% post Budget 2023 for certain cases).
What is the deadline for ITR filing?+
For individuals without audit: July 31 following the financial year end (e.g. July 31, 2027 for FY 2026-27). For audit cases: Oct 31. Belated filing allowed until Dec 31 with penalty; revised/updated return until 24 months later under ITR-U.