How to use the income tax calculator
- Enter your yearly salary or pension before tax.
- Add other income such as bank interest, and choose your age group.
- If you invest in PF, PPF, LIC or pay rent, open “Deductions (old regime)” and fill in what applies.
- Compare the tax in both regimes and see which one saves you more.
- Check the slab-by-slab table and the monthly TDS your employer may cut.
New regime tax slabs, Tax Year 2026-27
Salaried people and pensioners get a ₹75,000 standard deduction. If taxable income is ₹12,00,000 or less, a rebate of up to ₹60,000 makes the tax zero, so a salary of up to ₹12,75,000 pays no tax. Just above ₹12 lakh, marginal relief keeps the tax from exceeding the income above ₹12 lakh.
- Up to ₹4,00,000: nil
- ₹4,00,001 to ₹8,00,000: 5%
- ₹8,00,001 to ₹12,00,000: 10%
- ₹12,00,001 to ₹16,00,000: 15%
- ₹16,00,001 to ₹20,00,000: 20%
- ₹20,00,001 to ₹24,00,000: 25%
- Above ₹24,00,000: 30%
Old regime tax slabs
The standard deduction is ₹50,000. If taxable income is ₹5,00,000 or less, a rebate of up to ₹12,500 makes the tax zero. The old regime allows HRA, 80C (Section 123 in the new Act), 80D, NPS and home loan interest.
- Up to ₹2,50,000: nil (₹3,00,000 if you are 60 to 79, ₹5,00,000 if 80 or older)
- ₹2,50,001 to ₹5,00,000: 5%
- ₹5,00,001 to ₹10,00,000: 20%
- Above ₹10,00,000: 30%
What changed with the Income-tax Act 2025
From 1 April 2026 the Income-tax Act 2025 replaced the 1961 Act. Budget 2026 kept the same slabs, rates and limits; mainly the names and section numbers changed.
- “Tax Year 2026-27” replaces the old FY 2026-27 / AY 2027-28 pair.
- 80C deductions are now under Section 123.
- Form 16 from your employer is now Form 130.
- HRA: Bengaluru, Hyderabad, Pune and Ahmedabad now get the 50% limit, like Delhi, Mumbai, Kolkata and Chennai.
Surcharge and cess
If taxable income is above ₹50 lakh, a surcharge is added to the tax: 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore and 37% above ₹5 crore (the new regime stops at 25%). Marginal relief applies just above each limit. A 4% health and education cess is then added to tax plus surcharge.
How we calculate
Every calculation runs in your browser — nothing you enter is sent to a server or stored. Formulas, rates and rules on this page were last reviewed on by the Kreotek Technologies Private Limited team.
Frequently asked questions
Which is better for me, the old or the new regime?
It depends on your deductions. The new regime has lower rates and is usually better if your deductions (HRA, 80C, 80D, home loan) are small. If you claim large HRA and home loan interest, the old regime can still be cheaper. Enter your numbers above and the calculator shows which one saves more.
Is income up to ₹12 lakh tax free in 2026-27?
In the new regime, yes: if taxable income is ₹12,00,000 or less, the rebate of up to ₹60,000 brings the tax to zero. For a salaried person this means a salary of up to ₹12,75,000, after the ₹75,000 standard deduction. Special-rate income like capital gains is not covered by this rebate.
What is Tax Year 2026-27?
Under the Income-tax Act 2025, the year you earn income in is called the Tax Year. Tax Year 2026-27 runs from 1 April 2026 to 31 March 2027. It replaces the old pair of financial year and assessment year.
Is 80C still available under the new Act?
Yes, in the old regime. 80C is now Section 123 of the Income-tax Act 2025, with the same ₹1,50,000 limit for PF, PPF, ELSS, LIC, tuition fees and home loan principal. It is not allowed in the new regime.
Can I claim HRA in the new regime?
No. HRA exemption is only in the old regime. It is the lowest of three amounts: the HRA you get, rent paid minus 10% of basic salary, and 50% of basic (in Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad) or 40% of basic elsewhere.
What is marginal relief at ₹12 lakh?
Without it, earning just ₹10,000 above ₹12 lakh would cost over ₹60,000 in tax. Marginal relief limits the tax to the income above ₹12 lakh. For example, at a taxable income of ₹12,25,000 the tax is ₹25,000 plus cess, not ₹63,750.
How is monthly TDS worked out?
This calculator divides the yearly tax by 12. Your employer works out TDS on salary from your declared regime and investments, so the actual amount each month can differ, especially if your salary changes during the year. It is reported in Form 130 (earlier Form 16).
Is my data safe?
Yes. All calculations run in your browser. Nothing you type is sent to a server or saved.