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Free tool · Updated 2026

Income Tax Calculator

Compare your tax under the old and new regimes for AY 2026-27 in seconds, with the standard deduction, Section 87A rebate, surcharge and cess all built in.

Your details

AY 2026-27 (FY 2025-26). Enter figures to see tax under both regimes.

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New regime
Lower tax by comparing both below
New regime tax₹0
Old regime tax₹0
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Includes 4% health & education cess and Section 87A rebate. Surcharge applied above ₹50L. Marginal relief applied near ₹12L (new). Estimate only, not tax advice.

How this calculator works

This tool computes your income tax for Assessment Year 2026-27 (Financial Year 2025-26) under both the new and old regimes, then tells you which one leaves you paying less. Enter your gross annual income, choose whether it is salary or pension (which unlocks the standard deduction), and add the deductions you would claim under the old regime.

The new regime is now the default. Because of the enhanced Section 87A rebate, salaried income up to ₹12.75 lakh can be entirely tax-free under the new regime, ₹12 lakh of taxable income after the ₹75,000 standard deduction.

The AY 2026-27 slab rates

New regime (default)

Taxable incomeRate
Up to ₹4,00,000Nil
₹4,00,001 to ₹8,00,0005%
₹8,00,001 to ₹12,00,00010%
₹12,00,001 to ₹16,00,00015%
₹16,00,001 to ₹20,00,00020%
₹20,00,001 to ₹24,00,00025%
Above ₹24,00,00030%

Standard deduction ₹75,000 for salaried and pensioners. Section 87A rebate up to ₹60,000 makes taxable income up to ₹12 lakh tax-free. Marginal relief applies just above ₹12 lakh so a small rise in income never costs more in tax than the income gained.

Old regime (opt-in)

Taxable incomeRate
Up to ₹2,50,000Nil
₹2,50,001 to ₹5,00,0005%
₹5,00,001 to ₹10,00,00020%
Above ₹10,00,00030%

Standard deduction ₹50,000. Section 87A rebate ₹12,500 up to ₹5 lakh taxable income. The old regime only wins when your deductions, 80C, 80D, HRA, home loan interest, NPS, are large enough to offset its higher headline rates.

Which regime should you choose?

The rule of thumb: if your total deductions are modest, the new regime almost always wins because of its wider slabs and larger standard deduction. The old regime becomes worthwhile only when your deductions are substantial, typically once they cross roughly ₹3.5 to ₹4 lakh at higher incomes. This calculator does the exact comparison for your numbers, but if you want to understand the trade-off in depth, our old vs new regime guide walks through it with worked examples.

A worked example

Take a salaried person earning ₹15,00,000 with ₹1,50,000 of 80C deductions. Under the new regime, taxable income is ₹14,25,000 after the ₹75,000 standard deduction, and tax works out to about ₹97,500 including 4% cess. Under the old regime, after the ₹50,000 standard deduction and ₹1,50,000 of 80C, taxable income is ₹13,00,000 and tax is roughly ₹2,10,600 including cess. Here the new regime saves over ₹1,13,000, because ₹1,50,000 of deductions is nowhere near enough to overcome the old regime's much higher rates. The old regime would only start to win once deductions climbed well above ₹3.5 lakh.

Frequently asked

Is income up to ₹12 lakh really tax-free?
Yes, for resident individuals under the new regime for AY 2026-27. A Section 87A rebate of up to ₹60,000 cancels the tax on taxable income up to ₹12 lakh. For salaried people, the ₹75,000 standard deduction lifts the tax-free gross salary to ₹12.75 lakh. Note the rebate does not cover special-rate income like capital gains.
Which regime is the default?
The new regime is the default under Section 115BAC. You are taxed under it automatically unless you specifically opt for the old regime when filing. The old regime remains available to anyone who wants to claim large deductions such as 80C, 80D, HRA and home loan interest.
Does this calculator include cess and surcharge?
Yes. It adds the 4% health and education cess on tax under both regimes, and applies surcharge for higher incomes (10% above ₹50 lakh, 15% above ₹1 crore, and so on), with the new regime's surcharge capped at 25%. It also applies marginal relief in the ₹12 lakh to ₹12.75 lakh band under the new regime.
What deductions can I still claim under the new regime?
Very few. The new regime removes most deductions including 80C, 80D and HRA. What remains includes the standard deduction of ₹75,000 for salaried individuals, the employer's NPS contribution deduction, and a handful of others. This is why the deductions field in the calculator only affects the old regime figure.
Is this calculator's result final for filing?
It is an accurate estimate for planning and regime comparison, but not a substitute for your actual return. Real filings can involve capital gains, multiple income heads, TDS credits and other adjustments. For a return that is filed correctly and on time, our team handles the whole process, use the calculator to plan, then talk to us to file.