Income Tax Calculator — Tax Year 2026–27
Compare Old vs New Tax Regime for Tax Year 2026–27
Calculate your exact tax liability under both the New Tax Regime (Section 115BAC) and Old Tax Regime for Tax Year 2026–27 and Tax Year 2025–26. Includes standard deduction of ₹75,000, Section 87A marginal rebate, surcharge brackets, and Chapter VI-A deductions.
Test instant tax calculations across realistic salary and deduction benchmarks:
1Annual IncomesGross: ₹15,50,000
2Deductions (Old Regime)
Applies only when opting for Old Tax Regime
Save ₹89,700 in New Regime
The New Tax Regime yields lower tax due to expanded slabs and ₹75,000 standard deduction (Zero tax up to ₹12.75L).
Income Tax Slab Rates for Tax Year 2026–27 & Tax Year 2025–26
New Tax Regime (Section 115BAC)Default Scheme
| Income Slab (₹) | Applicable Rate |
|---|---|
| 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% |
*Salaried & pensioners receive ₹75,000 standard deduction. Section 87A rebate ensures Zero Tax up to ₹12,00,000 taxable net income (₹12,75,000 gross salary).
Old Tax Regime (Opt-in)With Deductions
| Income Slab (₹) | Applicable Rate |
|---|---|
| Up to ₹2,50,000 (General) | Nil |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
*Eligible for 80C (₹1.5L), 80D (₹25k-₹1L), 80CCD(1B) (₹50k), HRA and Sec 24(b) home loan interest deduction.
Frequently Asked Questions on Tax Calculation & ITR Regimes
What is the new 'Tax Year' terminology starting from 1st April 2026?
Starting 1st April 2026, the archaic distinction of 'Assessment Year' and 'Previous Year' is consolidated into the unified term 'Tax Year' (TY). For example, income earned and returns filed for FY 2025-26 / AY 2026-27 correspond to Tax Year 2025–26, and upcoming filings correspond to Tax Year 2026–27.
What is the standard deduction under the New Tax Regime?
For salaried individuals and pensioners, the standard deduction under the New Tax Regime is ₹75,000. Under the Old Tax Regime, the standard deduction is ₹50,000.
How does Section 87A rebate and marginal relief work under the New Tax Regime?
Under the New Tax Regime (Section 115BAC), individuals with taxable income up to ₹7,00,000 pay Zero Tax due to full Section 87A rebate (up to ₹25,000). For income marginally exceeding ₹7,00,000, marginal relief ensures that the total tax payable does not exceed the income earned above ₹7,00,000.
Can business owners and professionals switch between Old and New Tax Regimes every year?
No. Individuals with business or professional income (filing ITR-3 or ITR-4) can opt into the Old Regime only once and switch back to the New Regime once in a lifetime (by filing Form 10-IEA). Salaried individuals without business income can choose between Old and New regimes every tax year at the time of return filing.
Which regime is better if I have high 80C, 80D, and Home Loan interest?
If your total eligible deductions (Standard deduction + 80C + 80D + HRA + Section 24(b) home loan interest) exceed approximately ₹3.75 Lakhs to ₹4.25 Lakhs (depending on gross income), the Old Tax Regime typically yields lower tax. Otherwise, the New Tax Regime's lower slab rates provide higher savings.
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