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Indian Tax Regime Calculator — Calculations & Slabs for FY 2026-27

Enter your income, deductions, and investment details to compute your tax liability under both old and new regimes side by side for FY 2025-26 and pick the better option.

1. Income & Profile

2. Old Regime Deductions

Max ₹1,50,000
Max ₹1,00,000
Max ₹2,00,000
Max ₹50,000

FY 2026-27 Indian Income Tax Compounding & Rebates

Indian tax laws undergo periodic changes. Under the Union Budget updates, the New Tax Regime is the default framework, designed to offer simplified brackets and lower tax percentages in exchange for foregone exemptions.

Section 87A Rebate & Marginal Relief

A critical parameter of the New Tax Regime is the Section 87A rebate, which has been extended to individuals with taxable income up to ₹12 Lakhs (AY 2027-28). This rebate offers complete relief up to ₹60,000, reducing your base tax liability to zero.

To eliminate the cliff effect—where an income of ₹12,01,000 would attract ₹60,150 in taxes while ₹12,00,000 would pay nothing—marginal relief has been introduced. The tax payable on taxable income slightly exceeding ₹12 Lakhs is strictly capped at the excess income over ₹12 Lakhs.

Tax Slabs Comparison for FY 2026-27

New Regime Brackets (Default)

  • 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 Brackets (Optional)

  • Up to ₹2,50,000: Nil
  • ₹2,50,001 to ₹5,00,000: 5%
  • ₹5,00,001 to ₹10,00,000: 20%
  • Above ₹10,00,000: 30%

Frequently Asked Questions (FAQ)

What are the new tax slabs under the New Tax Regime for FY 2026-27?

Under the Union Budget announcements, the New Tax Regime slabs are: Income up to ₹4,00,000 is tax-free. Slabs are 5% for ₹4L-₹8L, 10% for ₹8L-₹12L, 15% for ₹12L-₹16L, 20% for ₹16L-₹20L, 25% for ₹20L-₹24L, and 30% for income above ₹24L.

How does the Section 87A rebate work under the New Regime for FY 2026-27?

For resident individuals, taxable income up to ₹12 lakh is fully rebate-eligible under Section 87A in the New Tax Regime, giving a maximum rebate of ₹60,000 and making the tax liability zero. Marginal relief is provided if taxable income slightly exceeds ₹12 lakh.

Can I claim the standard deduction under both tax regimes?

Yes, but the amount differs. Salaried individuals get a standard deduction of ₹75,000 under the New Tax Regime for FY 2026-27. Under the Old Tax Regime, the standard deduction remains ₹50,000. Business owners and self-employed professionals are not eligible for either standard deduction.

When should I choose the Old Tax Regime over the New Regime?

The Old Tax Regime is generally better if you have high deductions (such as Section 80C, HRA, Section 24b home loan interest, and health insurance under 80D) that exceed ₹3.75 lakh to ₹4 lakh in total. If your tax-saving investments are minimal, the New Regime's lower tax rates and higher standard deduction make it more beneficial.

Where can I verify the source data for this calculator?

You can verify the values against the official notifications listed in our data sources section at the bottom of the page.

Rates sourced from official government portals — see data sources & verification dates

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About This Calculator

Target Audience: Salaried taxpayers, investors & retirees planning Indian tax & wealth growth Last verified: 2026-06-30

What Does This Calculator Do?

This tool compares how much tax you owe under the two options provided by the government. It calculates your tax using both the old system and the new system side by side. By showing both results, it helps you choose the path that keeps more money in your pocket.

How to Use It

  1. Gross Annual Income: Type your total earnings for the entire year before any deductions.
  2. Are you a Salaried Employee?: Select yes if you get a monthly salary slip from an employer.
  3. Section 80C: Type the total amount you put in tax-saving options like public funds. The maximum allowed is ₹1,50,000.
  4. Section 80D: Type the money you spent on health insurance. The maximum allowed is ₹1,00,000.
  5. Home Loan Interest: Type the interest you paid on your home loan. The maximum allowed is ₹2,00,000.
  6. NPS Extra Deduction: Type any extra money put into the national pension plan.
  7. Other Exemptions: Type any other tax-free allowances like house rent savings.

The Logic Explained Simply

  • The Concept: Think of your income as a pile of cash. The government takes a slice of this cash based on tax slabs, which are different percentage steps. The old option lets you shrink your taxable cash pile by subtracting your savings first. The new option does not let you subtract savings, but it charges a lower percentage on your cash pile.
  • The Formula:

Taxable Income = Gross Income - Standard Deduction - Tax Exemptions

Tax Due = Sum of (Income in Slab × Slab Rate)

Real-World Calculation Breakdown

For example, if your annual salary is ₹10,00,000, and you put ₹1,50,000 in Section 80C plus ₹50,000 in health insurance. Under the new option, you get a flat standard deduction (a free tax discount) of ₹75,000. Under the old option, you subtract the standard deduction, the ₹1,50,000, and the ₹50,000. The calculator processes both sets of slabs and shows you exactly how much tax you save under each option.

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