About the Income Tax Calculator (Tax Year 2026-27)
For Tax Year 2026-27, the new regime charges no tax on taxable income up to ₹12 lakh, thanks to a rebate of up to ₹60,000. With the ₹75,000 standard deduction, a salary of up to ₹12.75 lakh pays ₹0 tax. Above that, slab rates of 5% to 30% apply, plus 4% cess.
How it is calculated
Tax = slab tax − rebate + surcharge, then + 4% health and education cess
- Taxable income = salary − standard deduction (₹75,000 new, ₹50,000 old) + other income − deductions.
- Deductions such as 80C, 80D, HRA and home loan interest count only in the old regime. Employer NPS contribution counts in both.
- Rebate: no tax if taxable income is at most ₹12 lakh (new) or ₹5 lakh (old). Just above ₹12 lakh, marginal relief caps tax at the income above ₹12 lakh.
- Surcharge: 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore, and 37% above ₹5 crore in the old regime only, with marginal relief at each step.
Worked example
Inputs: ₹18,00,000 salary, ₹4,00,000 of old-regime deductions, age below 60.
Result: New regime ₹1,50,800, old regime ₹2,26,200. The new regime is cheaper by ₹75,400.
Rules and assumptions
- Tax Year 2026-27 runs from 1 April 2026 to 31 March 2027. It is the first year under the Income-tax Act, 2025, which replaced the 1961 Act. Budget 2026 kept the slabs, standard deduction, rebate, surcharge and cess unchanged.
- New regime slabs: up to ₹4 lakh nil; ₹4–8 lakh 5%; ₹8–12 lakh 10%; ₹12–16 lakh 15%; ₹16–20 lakh 20%; ₹20–24 lakh 25%; above ₹24 lakh 30%.
- Old regime slabs: up to ₹2.5 lakh nil (₹3 lakh at age 60–79, ₹5 lakh at 80+); ₹2.5–5 lakh 5%; ₹5–10 lakh 20%; above ₹10 lakh 30%.
- The new regime is the default. Salaried people without business income can choose either regime every year when filing.
- Section numbers changed under the Income-tax Act, 2025. This page uses the familiar names (80C, 80D, 87A) for clarity.
- Capital gains taxed at special rates are not included, and the rebate does not apply to them.
Frequently asked questions
How much salary is tax-free in Tax Year 2026-27?
Under the new regime, a salary of up to ₹12.75 lakh pays no tax: the ₹75,000 standard deduction brings taxable income to ₹12 lakh, and the rebate cancels the tax on that.
What are the new tax regime slabs?
Up to ₹4 lakh nil, ₹4–8 lakh 5%, ₹8–12 lakh 10%, ₹12–16 lakh 15%, ₹16–20 lakh 20%, ₹20–24 lakh 25%, and 30% above ₹24 lakh.
Which regime should I choose?
Enter your deductions and compare. As a rough guide, the old regime only wins when your deductions (HRA, 80C, 80D, home loan interest and so on) are large, often ₹4 lakh or more on higher salaries.
What is the tax on ₹15 lakh salary?
Under the new regime, ₹97,500 including cess.
What is the tax year?
From 1 April 2026, the Income-tax Act, 2025 uses a single "tax year" (1 April to 31 March) instead of the old "financial year" and "assessment year".