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Income Tax Calculator — Tax Year 2026-27
Updated: 3 June 2026 | Income-tax Act, 2025 | Old vs New Regime | 87A Rebate Included
An income tax calculator computes your payable tax for the Tax Year by applying current slab rates, standard deduction, surcharge and 4% cess to your income. For Tax Year 2026-27 under the new regime, income up to ₹12,75,000 (salaried) is effectively zero-tax after the ₹12L 87A rebate and ₹75K standard deduction. Enter your income below to compare both regimes instantly.
₹12.75L
Zero-tax limit for salaried individuals, new regime, Tax Year 2026-27. ₹12,00,000 Section 87A rebate + ₹75,000 standard deduction. Non-salaried zero-tax limit = ₹12,00,000.
FY 2025–26 · AY 2026–27 · Budget 2025 Updated
Income Tax Calculator
Old vs New regime comparison with slab-wise breakdown, surcharge, cess, and 87A rebate. Takes 3 minutes.
🎉 New Regime FY 2025-26: Income up to ₹12.75L is effectively TAX FREE (₹12L rebate + ₹75K standard deduction)
Step 1 of 5
Select Financial Year & Tax Regime
We will compare both regimes and show you the better option at the end.
Financial Year
Recommended 2025
New Tax Regime
Zero tax up to ₹12L (87A rebate). 7 slabs from 0%–30%. ₹75K standard deduction for salaried.
Classic
Old Tax Regime
Higher slabs but allows 80C, 80D, HRA and other deductions. Best if you invest heavily.
Don't worry — we'll compare both regimes and recommend the best one for you.
What is your primary employment type?
This determines standard deduction and filing form.
What is your gross annual income?
Total income before any deductions. Include salary, business income, rent, etc.
₹0₹6,00,000₹50L+
Enter your deductions (Old Regime)
Leave blank if not applicable. These reduce your taxable income.
Max ₹1,50,000
Max ₹25,000 (self+family)
Use HRA calculator →
80E, 80G, 24(b), etc.
Standard deduction of ₹50,000 (Old) / ₹75,000 (New, FY 2025-26) is added automatically for salaried individuals.
Tax Calculation — FY 2025-26
Slab-wise Breakdown — Recommended Regime
Income Slab
Rate
Tax Amount
Get Your Personalised Tax Plan + ITR Filed
Our CA team reviews your complete situation, finds additional savings, and files your ITR — starting at ₹999.
How This Income Tax Calculator Works
Our calculator uses the current slab rates under the Income-tax Act, 2025 (replacing the Income Tax Act, 1961, effective 01-Apr-2026):
Enter gross income (salary, business income, rent, etc.)
Select employment type — salaried individuals get ₹75,000 standard deduction (new regime) or ₹50,000 (old regime)
Under old regime: enter deductions (80C up to ₹1.5L, 80D, HRA, etc.)
Calculator returns tax for both regimes and recommends the lower one
Section 87A rebate applied automatically: new regime (≤₹12L taxable = zero tax); old regime (≤₹5L taxable = zero tax)
Surcharge and 4% cess are added on top
Terminology note: "Assessment Year 2026-27" and "FY 2025-26" are legacy terms under the old Income Tax Act, 1961. Under the Income-tax Act, 2025, the correct term is Tax Year 2026-27. These refer to the same period.
Frequently Asked Questions
What is the income tax on ₹12 lakh income for Tax Year 2026-27?
Under the new regime for Tax Year 2026-27, taxable income of ₹12,00,000 attracts zero tax because the 87A rebate reduces tax liability to nil for incomes up to ₹12L. For salaried individuals, the effective zero-tax limit is ₹12,75,000 (after ₹75,000 standard deduction). Under the old regime, tax on ₹12L is approximately ₹1,17,000 + 4% cess = ₹1,21,680.
Which regime gives lower tax — old or new?
For most salaried employees with income below ₹15L and deductions below ₹3.75L, the new regime gives lower tax. The new regime is better when deductions claimed in the old regime are below the break-even point. Use our calculator above to compare both regimes for your specific income and deductions.
How is surcharge calculated on income tax?
Surcharge is levied on the income tax amount (after rebate). Rates: 10% for income ₹50L–1Cr; 15% for ₹1–2Cr; 25% for ₹2–5Cr; 37% for above ₹5Cr (old regime) or 25% cap (new regime). Surcharge applies before cess.
Is the 4% cess included in tax calculator results?
Yes. The health and education cess at 4% is calculated on the total income tax plus surcharge and is included in the total tax payable shown by the calculator.
How to reduce income tax legally?
Under the old regime: invest up to ₹1.5L in 80C instruments (PPF, ELSS, LIC), claim 80D health insurance premium, HRA exemption if renting, 24(b) home loan interest, and NPS contribution under 80CCD(1B). Under the new regime, deduction options are limited but standard deduction and employer NPS contribution still apply.
