Income Tax Calculator and Regime Comparison, TY 2026-27
One income, both regimes: your tax for TY 2026-27 or FY 2025-26 with the rebate, marginal relief, surcharge and cess worked in, and which regime leaves more in your pocket.
₹1,50,800
tax a year · ₹12,567 a month
Take-home ₹16,49,200 a year · ₹1,37,433 a month
₹75,000 deductions · 8.4% effective
₹3,04,200
tax a year · ₹25,350 a month
Take-home ₹14,95,800 a year · ₹1,24,650 a month
₹2,00,000 deductions · 16.9% effective
The new regime keeps ₹1,53,400 more of your money this year, about ₹12,783 a month. That assumes ₹1,50,000 in 80C; add your real deductions to refine it.
The old regime only wins if your old-regime deductions exceed ₹6,41,667 a year. The pre-filled 80C basket counts ₹1,50,000.
For TY 2026-27, your estimated tax under the new regime is
₹1,50,800
Slab breakdown
- 0% on ₹4L
- 5% on ₹4L
- 10% on ₹4L
- 15% on ₹4L
- 20% on ₹1.25L (marginal)
How your ₹17,25,000 of taxable income fills the new regime's slabs. Only the slice inside each band pays that band's rate.
Taxable income
| Gross income | ₹18,00,000 |
| Standard deduction | − ₹75,000 |
| Other deductions | − ₹0 |
| Taxable income | ₹17,25,000 |
Estimated tax
| Tax by slab | ₹1,45,000 |
| Rebate (Sec 156†, old 87A) | − ₹0 |
| Surcharge | + ₹0 |
| Health & education cess (4%) | + ₹5,800 |
| Total tax | ₹1,50,800 |
Monthly estimate
| Monthly TDS estimate | ₹12,567/month |
| In-hand after tax (before PF and other payroll cuts) | ₹1,37,433/month |
Uses the TY 2026-27 slab sets under the Income-tax Act 2025; compiled 1 July 2026, CA review in progress. Covers salary and other ordinary income with surcharge, marginal relief, the HRA exemption and the main old-regime deductions; it doesn't yet handle capital gains or business income (see all calculators). Take-home means income minus this tax, before PF and other payroll cuts. Your employer's monthly TDS may differ; they project your full-year income and adjust as facts change. † 2025-Act section number pending verification against the Gazette text. See every assumption.
How this income tax calculator works
Tax year: The default is TY 2026-27, the tax year from 1 April 2026 to 31 March 2027 and the first full year under the Income-tax Act 2025. “Tax year” is the new Act's replacement for the old previous-year and assessment-year pair, so there's one label to keep track of, not two. Filing the return that's due right now? Switch the dropdown to FY 2025-26: the slab numbers are identical, but that year is still governed by the 1961 Act, so the rebate shows its old name, Section 87A.
Annual income: Your gross income for the year before any deduction: salary, bank interest, rent and other ordinary income added together. Don't net off your 80C investments here; the calculator handles deductions in their own field so you can see exactly what each one does.
Standard deduction: Tick “I earn a salary” and we knock off ₹75,000 under the new regime or ₹50,000 under the old one, automatically. It applies to pension from a former employer too, with no receipts or proof needed. Everyone salaried gets it.
Old-regime deductions: The 80C basket (EPF, PPF, ELSS, life insurance, capped at ₹1,50,000) plus anything else you claim: 80D health premiums, home-loan interest, your HRA exemption. These reduce old-regime tax only; the new regime ignores nearly all of them, which is exactly the trade it offers for its lower slab rates. The one survivor is employer NPS under 80CCD(2), which the calculator counts in both regimes.
Rebate and marginal relief:Under the new regime, a rebate (Section 156† of the 2025 Act, the rule you knew as 87A) cancels the entire tax on taxable income up to ₹12,00,000. Just past that line, marginal relief caps your tax at the amount you earned above the limit, so an extra ₹1,000 of salary can never cost you more than ₹1,000 in tax.
Surcharge: A tax on the tax that starts above ₹50 lakh of taxable income. The rate is 10%, then 15% past ₹1 crore, 25% past ₹2 crore, and 37% past ₹5 crore on the old regime only; the new regime caps it at 25%. Marginal relief smooths the cliff at each band edge here too, and the calculator applies it for you.
The “₹12.75 lakh tax-free” line, in one paragraph. It's two rules stacked: the standard deduction turns ₹12,75,000 of salary into ₹12,00,000 of taxable income, and the Section 156† rebate then wipes out the tax on it, so a salaried person on the new regime with income up to ₹12,75,000 pays nothing. It isn't an exemption limit, though: cross it and the slabs apply to your whole income (softened by marginal relief), and special-rate income like capital gains never qualified for the rebate in the first place.
The slab tables behind the math
Every rate in this calculator comes from these effective-dated tables, the same ones that power our slab pages. Expand them to check the workings.
New regime slabs, TY 2026-27 (Individuals & HUF (all ages))
| Taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | 0% |
| ₹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% |
Rebate under Section 156† cancels tax up to ₹12,00,000 of taxable income, with marginal relief just above. Standard deduction for salaried: ₹75,000.
Old regime slabs, TY 2026-27 (three age bands)
Individuals below 60
| Taxable income | Rate |
|---|---|
| Up to ₹2,50,000 | 0% |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Senior citizens (60–79)
| Taxable income | Rate |
|---|---|
| Up to ₹3,00,000 | 0% |
| ₹3,00,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Super senior citizens (80 and above)
| Taxable income | Rate |
|---|---|
| Up to ₹5,00,000 | 0% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Old-regime rebate: up to ₹12,500 for taxable income up to ₹5,00,000. Standard deduction for salaried: ₹50,000.
This calculator assumes:
- You're a resident individual. The Section 156† rebate isn't available to non-residents, and other entity types (firms, companies) have their own rates. Non-resident, or filing for an HUF? Neither the rebate nor the senior slabs apply; the e-filing portal's Income and Tax Calculator covers those cases.
- All of your income is ordinary income taxed at slab rates. Capital gains, lottery winnings and crypto/VDA income carry their own flat rates and sit outside this estimate.
- Deduction fields cap what the law caps: ₹1,50,000 for the 80C basket, ₹2,00,000 for self-occupied home-loan interest under 24(b), ₹50,000 for NPS under 80CCD(1B). The 80D field is taken at face value because its ceiling depends on ages (₹25,000 for self and family, ₹50,000 more for senior-citizen parents); the employer-NPS and catch-all fields are face value too.
- The HRA block follows Rule 2A: the least of HRA received, rent paid minus 10% of basic + DA, and 50% (metro) or 40% (elsewhere) of basic + DA is exempt. Metro means the rented home is in Delhi, Mumbai, Kolkata or Chennai; where your office sits doesn't matter.
- Employer NPS under 80CCD(2) reduces taxable income in both regimes. Keep your entry within your regime's percentage-of-basic ceiling; the calculator doesn't know your salary split. Other both-regime deductions (80CCH Agniveer corpus, 80JJAA) can go in the same field.
- The break-even line is solved numerically against this engine for your exact income, age band and salary status; it isn't a lookup table.
- The standard deduction applies only when the salary box is ticked, and only once.
- Health and education cess runs at 4% on tax plus surcharge, in both regimes.
- Agricultural-income aggregation, AMT, Section 89 arrears relief and foreign tax credits aren't modelled.
- The monthly TDS figure is total tax divided by twelve. Treat it as a planning number, not a prediction of your payslip.
† Section 156 is the 2025 Act's renumbering of the Section 87A rebate; the new number is pending CA verification against the Gazette text.
Related calculators
Income tax calculator FAQs
Which regime is better for TY 2026-27?
It depends entirely on your deductions. The new regime has wider slabs and a rebate that zeroes out tax up to ₹12 lakh of taxable income, but it ignores most deductions. The old regime only wins when your deductions are heavy, typically a home loan plus HRA plus a full 80C basket. Enter your numbers above; the calculator works both regimes out and tells you the difference in rupees.
Is ₹12.75 lakh of salary really tax-free?
Yes, for a salaried person on the new regime. The ₹75,000 standard deduction brings ₹12,75,000 of salary down to ₹12,00,000 of taxable income, and the rebate you knew as Section 87A (Section 156 in the 2025 Act, pending verification) then cancels the entire tax on it. The catch: the rebate only covers income taxed at slab rates (capital gains and other special-rate income sit outside it), and once you cross the line, normal slab tax phases in through marginal relief.
What is marginal relief?
A cap that stops a small pay rise from causing a big tax jump. Just above the ₹12 lakh rebate limit, your tax can't exceed the amount you earned over the limit. At ₹12,10,000 of taxable income your tax is capped at ₹10,000 (plus cess) rather than the ₹61,500 the slabs alone would produce. The same principle applies where each surcharge band begins.
Is my data stored anywhere?
The calculator runs in your browser and we store nothing you type; there is no account or sign-up. One exception to know about: if you use the Copy link button, your inputs are written into that link's address, so anyone you share it with can see them, and opening the link sends them with the page request like any URL. Don't share the link if you'd rather keep the numbers private.
Can I switch regimes every year?
Salaried taxpayers with no business income can pick either regime each year at filing time, whatever they told their employer. If you have business or professional income, the choice is stickier: opting out of the new regime needs Form 10-IEA before the filing due date, and you get essentially one switch back in a lifetime. The calculator compares both regimes regardless; the switching rules only govern what you elect on your return.
Why does my employer's TDS differ from this estimate?
The monthly figure here is simply your annual tax divided by twelve. Employers instead project your full-year income each month and adjust as facts change. A mid-year increment, a bonus month, investment proofs submitted in January, or salary from a previous employer can all make the actual deduction lumpier than a flat one-twelfth.