Income Tax Calculator for FY 2026-27: Comparing India's New and Old Regimes
Every April, salaried people in India face the same form from HR: choose your tax regime for the year. Most pick based on what a colleague did. Income tax (India) works out your tax under both regimes from your actual numbers, side by side, and tells you which one costs less, along with the monthly figure you'll see on your payslip.
Steps
- Enter your annual income, any other income, your age, and whether the income is salary.
- If you want to test the old regime, open its section and add deductions: 80C, 80D, home loan interest, HRA and NPS.
- Compare the two totals and note the monthly tax.
The new regime in plain numbers
From 1 April 2026, the Income-tax Act, 2025 refers to this period as tax year 2026-27, with the same slabs as the previous year. The page describes the new regime, which is the default, like this:
| Taxable income | Rate |
|---|---|
| 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% |
Salaried people get a ₹75,000 standard deduction. A rebate brings tax to zero for taxable income up to ₹12 lakh, with marginal relief just above that, so a salary up to ₹12.75 lakh effectively pays no income tax. Most other deductions don't apply in this regime; employer NPS contributions are an exception allowed in both.
The old regime
The old regime keeps the familiar deductions (80C, 80D, home loan interest, HRA, NPS) with a ₹50,000 standard deduction, and higher tax-free limits for senior citizens. The rates are higher, so it only wins when deductions are large.
Both regimes
A 4% health and education cess is added to the tax. Surcharge applies above ₹50 lakh, with marginal relief, and the calculator includes both.
Who usually benefits from which
As a broad pattern, the new regime wins for most people, especially anyone earning under about ₹13 lakh, or without a home loan. The old regime starts to compete when you combine a big chunk of deductions: maxed-out 80C, health insurance under 80D, home loan interest, and a large HRA claim from paying rent in a metro. The only way to know is to enter your numbers, which is the point of the side-by-side.
Example
A salaried person earning ₹18 lakh, paying ₹30,000 a month rent in Bengaluru, with full 80C investments and a family health policy. Enter salary, then open the old regime section and add HRA, 80C and 80D. The comparison shows which regime leaves more in hand. Change the rent or remove HRA and watch the answer flip, which tells you how sensitive your choice is.
Tips
- Use your annual CTC breakdown, not just "salary", to get HRA and basic right.
- Don't count deductions you won't actually make. Planning to invest ₹1.5 lakh in 80C but never doing it means paying the difference later.
- Revisit when life changes: a new home loan, a move to a rented flat, a big raise.
- For a monthly payslip estimate including PF, use CTC to in-hand salary.
Rules as of October 2026
Rules as of 27 October 2026. The calculator uses the slabs, standard deduction, rebate, surcharge and cess for FY 2026-27 as described on its page. Budgets change these numbers, and your situation may involve income or deductions the calculator doesn't model. Treat the result as an estimate, and confirm with the Income Tax Department or a qualified tax professional before you file.
Official sources:
Privacy
The tool page says your income stays in the tab and out of the address bar. Like the rest of the site, the page shows Google ads.
FAQ
Which regime is better for me? It depends on your deductions. Enter your numbers; the page shows both.
Is income up to ₹12 lakh tax-free in the new regime? Taxable income up to ₹12 lakh pays no tax because of the rebate; with the standard deduction, that's ₹12.75 lakh of salary.
Is HRA allowed in the new regime? No. HRA exemption and most deductions are old-regime only.
Are cess and surcharge included? Yes.
Before you tell HR your regime choice, run both through Income tax (India).
— Alok Kumar Singh