What is the New Tax Regime for FY 2026-27 (same as FY 2025-26)?

The Finance Act, 2026 left individual income-tax rates unchanged, so tax year 2026-27 (FY 2026-27, AY 2027-28) uses the same New Regime slabs, now in Section 202 of the Income-tax Act, 2025, that Budget 2025 introduced: 0% up to ₹4L, 5% from ₹4–8L, 10% from ₹8–12L, 15% from ₹12–16L, 20% from ₹16–20L, 25% from ₹20–24L, and 30% above ₹24L. A ₹75,000 standard deduction applies for salaried individuals. Effective nil tax for taxable income up to ₹12L via the Section 87A rebate (Section 156 of the Income-tax Act, 2025).

Which regime is better — New or Old?

It depends on your deductions. The Old Regime benefits those with high deductions (80C, HRA, home loan interest, NPS). The New Regime is simpler and better for those with few deductions. This calculator shows both and highlights the saving.

What is the Section 87A rebate?

Under the New Regime for FY 2026-27 (same as FY 2025-26), if your taxable income is ₹12 lakh or less, you get a full rebate (up to ₹60,000) — your tax liability is zero. Just above ₹12 lakh, marginal relief caps your tax at the income above ₹12 lakh, so a small raise never costs more than the raise itself. Under the Old Regime, the rebate is ₹12,500 for taxable income up to ₹5 lakh. From 1 April 2026 the rebate is Section 156 of the Income-tax Act, 2025 (it was Section 87A under the 1961 Act).

What is the standard deduction for FY 2026-27 and FY 2025-26?

Salaried employees and pensioners get a standard deduction of ₹75,000 under the New Regime and ₹50,000 under the Old Regime, and the amounts are the same for FY 2026-27 and FY 2025-26. This is automatically subtracted from gross income before applying tax slabs.

Does this calculator include surcharge and cess?

Yes. Surcharge is charged on the income tax when your total income (taxable income after the standard deduction and other deductions, not gross salary) exceeds ₹50 lakh (10%), ₹1 crore (15%) or ₹2 crore (25%); above ₹5 crore it is 37% in the Old Regime and capped at 25% in the New Regime. Marginal relief applies at each threshold, so tax plus surcharge never rises by more than the income above the threshold. Health and Education Cess of 4% is applied on tax plus surcharge. Capital gains taxed at special rates are not modelled.

Income Tax Calculator

Calculate India income tax for FY 2026-27 (same slabs as FY 2025-26) under the New or Old Regime, compare both, and see your exact tax liability. Free, instant.

Last updated: 19 October 2026

⚠️ Not financial advice. Results are illustrative only and should not be used as the basis for any investment, tax, or financial decision. Consult a qualified financial adviser or chartered accountant before acting on any figure shown.

Annual Income (₹)

₹

Gross income before any deductions

Employment Type

Tax Regime

Deductions for the old regime (₹)

₹

Total of 80C, 80D, NPS, home-loan interest, HRA exemption and similar claims, on top of the standard deduction. The new regime ignores them. Enter your own total; limits such as the ₹1.5 lakh cap on 80C are not applied for you.

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Income Tax in India — FY 2026-27 and FY 2025-26

The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, so FY 2026-27 is "tax year 2026-27" (AY 2027-28 in the old terminology). The Finance Act, 2026 left individual slabs and rates unchanged, so the New Regime slabs, rebate, standard deduction and 4% cess are the same as in FY 2025-26, when the Union Budget 2025-26 moved the effective nil-tax threshold to ₹12 lakh under the New Regime and set the standard deduction at ₹75,000 for salaried individuals. Section numbers changed with the new Act: the default New Regime is Section 202 (it was 115BAC), the rebate is Section 156 (87A), the standard deduction is Section 19, 80C is Section 123, 80D is Section 126 and employer NPS contributions are Section 124 (80CCD(2)); the amounts are unchanged. This calculator computes for FY 2026-27.

New Regime slabs (FY 2026-27, same as FY 2025-26)

₹0 – ₹4,00,000: Nil
₹4,00,001 – ₹8,00,000: 5%
₹8,00,001 – ₹12,00,000: 10%
₹12,00,001 – ₹16,00,000: 15%
₹16,00,001 – ₹20,00,000: 20%
₹20,00,001 – ₹24,00,000: 25%
Above ₹24,00,000: 30%

Surcharge and marginal relief on high incomes

Surcharge is charged on your income tax when your total income — taxable income after the standard deduction and other deductions, not your gross salary — exceeds ₹50 lakh (10%), ₹1 crore (15%) or ₹2 crore (25%). Above ₹5 crore the Old Regime charges 37%, while the New Regime is capped at 25%. Marginal relief means tax plus surcharge can never rise by more than the income above the threshold. Example (New Regime): at a taxable income of ₹50,25,000, tax is ₹10,87,500 and a flat 10% surcharge would make it ₹11,96,250 — ₹1,16,250 more than the ₹10,80,000 payable at ₹50 lakh, on just ₹25,000 of extra income. With marginal relief, tax plus surcharge is capped at ₹11,05,000 (surcharge ₹17,500), and with 4% cess the total is ₹11,49,200. Capital gains taxed at special rates (where surcharge is capped at 15%) are not modelled by this calculator.

When to choose the Old Regime

The Old Regime can still save tax if you have significant deductions: Section 80C investments (₹1.5L), HRA exemption, home loan interest (₹2L deduction), NPS contributions (Section 80CCD), and other allowances. If your total deductions (beyond the ₹50,000 standard deduction) exceed roughly ₹4.5–8 lakh, the Old Regime may result in lower tax. The break-even rises with income: about ₹4.5 lakh at a ₹10 lakh income, ₹5.4 lakh at ₹15 lakh, ₹7 lakh at ₹20 lakh, and ₹8 lakh at ₹25 lakh or more.

Disclaimer

This calculator is for informational purposes only. It uses standard deductions and published slab rates. It does not account for all possible exemptions, investments, or individual circumstances. Consult a chartered accountant for exact tax planning.

How to decide between New and Old Regime

The simplest way to decide: calculate your total deductions under the Old Regime — Section 80C (up to ₹1.5L), HRA exemption, home loan interest (Section 24b, up to ₹2L for self-occupied), Section 80D health insurance premium, NPS contribution (Section 80CCD), and other allowances. If your deductions add up to more than roughly ₹4.5–8 lakh (the break-even depends on your income, see above), the Old Regime likely gives lower tax. Below that threshold, the New Regime is usually better. This calculator shows the New Regime tax at your income; the Old Regime figure it shows assumes no deductions beyond the standard deduction, so use the break-even levels above to judge whether your own deductions tip the balance.

Who uses this income tax calculator

Salaried employees compare their tax liability under both regimes in January–March before declaring the preferred regime to their employer for TDS purposes. Freelancers and self-employed individuals use it to estimate advance tax installments due in June, September, December, and March. CAs and tax consultants use it for quick client consultations during the tax-saving season. New graduates starting their first job use it to understand how much of their CTC will be taken as tax and whether 80C investments make sense for their income level.

New Regime deductions — what is still allowed

While the New Regime removes most Chapter VI-A deductions, certain benefits remain. The ₹75,000 standard deduction is available for salaried employees and pensioners. Employer NPS contribution under Section 80CCD(2) is still deductible. Interest on home loans for let-out properties (not self-occupied) can be claimed. Family pension standard deduction of ₹25,000 is available. Leave encashment exemption applies. For most salaried employees without a home loan or large 80C investments, the New Regime's combination of lower rates and the ₹12 lakh effective zero-tax threshold (via Section 87A rebate) makes it the better choice from FY 2025-26.

Frequently asked questions

What is the New Tax Regime for FY 2026-27 (same as FY 2025-26)?: The Finance Act, 2026 left individual income-tax rates unchanged, so tax year 2026-27 (FY 2026-27, AY 2027-28) uses the same New Regime slabs, now in Section 202 of the Income-tax Act, 2025, that Budget 2025 introduced: 0% up to ₹4L, 5% from ₹4–8L, 10% from ₹8–12L, 15% from ₹12–16L, 20% from ₹16–20L, 25% from ₹20–24L, and 30% above ₹24L. A ₹75,000 standard deduction applies for salaried individuals. Effective nil tax for taxable income up to ₹12L via the Section 87A rebate (Section 156 of the Income-tax Act, 2025).
Which regime is better — New or Old?: It depends on your deductions. The Old Regime benefits those with high deductions (80C, HRA, home loan interest, NPS). The New Regime is simpler and better for those with few deductions. This calculator shows both and highlights the saving.
What is the Section 87A rebate?: Under the New Regime for FY 2026-27 (same as FY 2025-26), if your taxable income is ₹12 lakh or less, you get a full rebate (up to ₹60,000) — your tax liability is zero. Just above ₹12 lakh, marginal relief caps your tax at the income above ₹12 lakh, so a small raise never costs more than the raise itself. Under the Old Regime, the rebate is ₹12,500 for taxable income up to ₹5 lakh. From 1 April 2026 the rebate is Section 156 of the Income-tax Act, 2025 (it was Section 87A under the 1961 Act).
What is the standard deduction for FY 2026-27 and FY 2025-26?: Salaried employees and pensioners get a standard deduction of ₹75,000 under the New Regime and ₹50,000 under the Old Regime, and the amounts are the same for FY 2026-27 and FY 2025-26. This is automatically subtracted from gross income before applying tax slabs.
Does this calculator include surcharge and cess?: Yes. Surcharge is charged on the income tax when your total income (taxable income after the standard deduction and other deductions, not gross salary) exceeds ₹50 lakh (10%), ₹1 crore (15%) or ₹2 crore (25%); above ₹5 crore it is 37% in the Old Regime and capped at 25% in the New Regime. Marginal relief applies at each threshold, so tax plus surcharge never rises by more than the income above the threshold. Health and Education Cess of 4% is applied on tax plus surcharge. Capital gains taxed at special rates are not modelled.