Income tax calculator for Tax Year 2026-27: new vs old regime
Under the new regime for Tax Year 2026-27, salaried people pay no tax up to ₹12.75 lakh salary (₹12 lakh taxable after the ₹75,000 standard deduction), thanks to the rebate. Above that, rates go from 5% to 30%. The old regime only wins if you claim large deductions such as 80C, HRA and home-loan interest. Use the calculator below to compare both in seconds.
Key facts Last verified: 25 Sep 2026
| Item | Details | Source |
|---|---|---|
| New regime slabs | Nil up to ₹4 lakh · 5% ₹4–8 lakh · 10% ₹8–12 lakh · 15% ₹12–16 lakh · 20% ₹16–20 lakh · 25% ₹20–24 lakh · 30% above ₹24 lakh | Union Budget 2026 (unchanged) |
| Rebate (new regime) | Tax becomes nil if taxable income is up to ₹12 lakh; marginal relief just above it | Income Tax Dept |
| Standard deduction (salary/pension) | ₹75,000 new regime · ₹50,000 old regime | Income Tax Dept |
| Old regime slabs (below 60) | Nil up to ₹2.5 lakh · 5% up to ₹5 lakh · 20% up to ₹10 lakh · 30% above; rebate up to ₹5 lakh | Income Tax Dept |
| Cess | 4% health & education cess on tax + surcharge | Income Tax Dept |
| Law in force | Income-tax Act, 2025 from 1 April 2026 (“Tax Year” replaces FY/AY) | Income Tax Dept |
How to use this calculator
- Enter your total yearly salary or pension before any deductions.
- Add other income such as savings interest, FD interest or rent.
- Choose your age. It matters only in the old regime (higher tax-free limit for seniors).
- If your employer puts money into your NPS account, enter that amount. It is allowed in both regimes.
- Fill the old regime boxes only if you actually have those deductions.
- Tap Calculate. The tool shows tax in both regimes and which one saves you more.
New regime vs old regime: which is better?
For most salaried people in 2026-27, the new regime is better. It is also the default. The old regime helps only if your deductions are large.
A simple rule of thumb: if your total old-regime deductions (80C + 80D + HRA + home-loan interest + others) are less than about ₹4–5 lakh, the new regime usually gives lower tax at incomes between ₹12 lakh and ₹25 lakh. Always check your own numbers — the calculator does this for you.
| You are… | Usually better |
|---|---|
| Salaried, income up to ₹12.75 lakh | New regime (zero tax) |
| Salaried, few investments, no home loan | New regime |
| Paying high rent in a metro + full 80C + home loan | Check both — old can win |
| Senior citizen with big medical insurance and 80C | Check both |
What the calculator includes
- Standard deduction: ₹75,000 (new) or ₹50,000 (old) on salary or pension.
- Rebate: tax is nil up to ₹12 lakh taxable income in the new regime and up to ₹5 lakh in the old regime.
- Marginal relief: if your taxable income is just above ₹12 lakh, the extra tax is limited to the income above ₹12 lakh.
- Surcharge: 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore (capped at 25% in the new regime), with marginal relief.
- Cess: 4% on tax plus surcharge.
Section numbers changed in 2026. The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. Familiar names like “80C” and “87A” now have new section numbers (for example, 80C is covered by section 123 and the rebate by section 156). The money rules above did not change. See old vs new section numbers.
Worked example: ₹15 lakh salary
- New regime: ₹15,00,000 − ₹75,000 = ₹14,25,000 taxable. Tax: ₹0 on the first ₹4 lakh, ₹20,000 (4–8 lakh), ₹40,000 (8–12 lakh), ₹33,750 (12–14.25 lakh at 15%) = ₹93,750 + 4% cess = ₹97,500.
- Old regime with ₹1.5 lakh 80C and ₹25,000 80D: ₹15,00,000 − ₹50,000 − ₹1,75,000 = ₹12,75,000 taxable. Tax: ₹12,500 + ₹1,00,000 + ₹82,500 = ₹1,95,000 + cess = ₹2,02,800.
- Result: the new regime saves about ₹1,05,300 in this case.
Frequently asked questions
Is income up to ₹12 lakh tax-free in 2026-27?
Yes, in the new regime, if your taxable income is up to ₹12 lakh, the rebate makes your tax nil. For salaried people, that means salary up to ₹12.75 lakh because of the ₹75,000 standard deduction. The rebate does not cover special-rate income such as capital gains.
Did Budget 2026 change the tax slabs?
No. Budget 2026 kept the slabs, rebate, standard deduction, surcharge and cess the same as the previous year.
What is “Tax Year 2026-27”?
Under the Income-tax Act, 2025, the single term “Tax Year” replaces “previous year/financial year” and “assessment year”. Tax Year 2026-27 means income earned from 1 April 2026 to 31 March 2027.
Can I switch between the new and old regime?
Salaried people and pensioners without business income can choose each year when filing the return. People with business income have limited chances to switch.
Is the result exact?
It is a close estimate for resident individuals with salary and normal income. It does not handle capital gains, business income or special cases. Check with a tax professional for complex situations.
Official links
Use only these government websites. HumainOne is not connected to any of them.
- Income Tax Department — e-Filing portalFile returns, view AIS/26AS and use the official tax calculator
- Income-tax Act, 2025 — scope of the new ActWhat changed on 1 April 2026
- Union Budget documentsBudget speech and finance bill
Disclaimer: HumainOne is an independent information website. We are not affiliated with UIDAI, the Income Tax Department, EPFO, NPCI, the Election Commission, the Government of Maharashtra or any government body. We do not accept applications, documents or fees. Information is checked against official sources on the date shown but rules change — always confirm on the official website before acting. Calculators give estimates, not official figures, and this is not tax or legal advice.