Compare your tax under the new and old regime for FY 2026-27 (AY 2027-28). For resident individuals.
Results are estimates for information only and are not tax advice. Please check with a Chartered Accountant or the official Income Tax Department website before filing.
What Is an Income Tax Calculator?
An income tax calculator is a free tool that estimates how much income tax you have to pay in a financial year. You enter your income and deductions, and the income tax calculator shows your tax under both the new and the old tax regime, so you can see which one saves you more money. This calculator is updated for FY 2026-27 (AY 2027-28) and works for resident individuals.
How to Use This Income Tax Calculator
- Enter your annual income before any deductions.
- Select your age group. Age changes the basic exemption limit only in the old regime.
- Enter your Section 80C investments (up to ₹1,50,000) and any other old regime deductions such as health insurance, HRA or home loan interest.
- Tick the box if you are a salaried person or pensioner, so that the standard deduction is applied.
- Check the comparison table and the message that tells you which regime is better.
New Tax Regime Slabs for FY 2026-27
| Taxable income | Tax 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% |
The standard deduction is ₹75,000 for salaried people and pensioners. Under Section 87A, there is no tax if your taxable income is up to ₹12,00,000. This means a salaried person with an income of up to ₹12.75 lakh pays no tax in the new regime. Just above ₹12 lakh, marginal relief makes sure your tax is not more than the income that is above ₹12 lakh.
Old Tax Regime Slabs for FY 2026-27
| Taxable income (below 60 years) | Tax rate |
|---|---|
| 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% |
For senior citizens (60 to 79 years) the basic exemption limit is ₹3,00,000, and for super senior citizens (80 years and above) it is ₹5,00,000. The standard deduction is ₹50,000, and a rebate of up to ₹12,500 means no tax if taxable income is up to ₹5,00,000. The old regime also allows deductions like 80C, 80D and HRA.
Income Tax Calculator Example
Suppose a salaried person earns ₹15,00,000 a year and invests ₹1,50,000 under Section 80C. In the new regime, the taxable income is ₹14,25,000 and the total tax, including 4% cess, is about ₹97,500. In the old regime, the taxable income is ₹13,00,000 and the total tax is about ₹2,10,600. So the new regime saves about ₹1,13,100 in this case. You can try your own numbers in the income tax calculator above.
New Regime or Old Regime: Which Is Better?
The new regime has lower rates but allows almost no deductions. The old regime has higher rates but lets you reduce your taxable income with deductions. If your total deductions are small, the new regime is usually better. If you have large deductions, such as HRA and a home loan, the old regime can sometimes win. The best way to know is to compare both with your own numbers, which this income tax calculator does for you.
Things to Remember
- This is an estimate for resident individuals. Special cases, such as capital gains taxed at special rates, are not included.
- A 4% health and education cess is added to your tax. This calculator includes it.
- Surcharge for very high incomes (above ₹50 lakh) is not included.
- In the new regime, only a few deductions are allowed, such as the standard deduction. Check the latest rules for others.
- Tax rules can change every Budget. Always check the latest rules on the official Income Tax Department website before you file your return.
- Read more money guides in our Personal Finance section or visit the Ledgami homepage.
Frequently Asked Questions
How does an income tax calculator work?
It subtracts the allowed deductions from your income, applies the tax slabs of each regime, adds the rebate or relief and the 4% cess, and shows your total tax.
Is this income tax calculator free?
Yes. It is completely free, with no signup and no limit on how many times you use it.
Is income up to ₹12 lakh tax free?
In the new regime, taxable income up to ₹12 lakh has no tax because of the Section 87A rebate. For a salaried person, the standard deduction of ₹75,000 means income up to about ₹12.75 lakh has no tax.
Did the Budget 2026 change the tax slabs?
No. The slabs for FY 2026-27 are the same as before. Please check the Income Tax Department website for any new update.
What is the standard deduction for FY 2026-27?
It is ₹75,000 in the new regime and ₹50,000 in the old regime, for salaried people and pensioners.
Which regime should I choose?
Compare both with your own income and deductions. If your deductions are low, the new regime is often better. If they are high, the old regime may save more.
Does this calculator include surcharge and capital gains tax?
No. It does not include surcharge for very high incomes or special rates on capital gains. For these cases, please talk to a Chartered Accountant.
Disclaimer: This income tax calculator is for information only and is not tax or legal advice. Tax rules can change. Please check the latest rules on the official Income Tax Department website or talk to a Chartered Accountant before you file your return.
Published by Ledgami. Author: Happy Singhwal. Last updated: October 2026.