Income Tax Calculator 2026-27 — Old vs New Regime
Compare your tax under the old and new regimes side by side and see which costs less.
- No login
- No signup
- No paywall
- Nothing leaves your browser
Figures for AY 2026-27(Tax Year 2026-27). Finance Act 2026 made no change to individual rates, so these apply to both year framings. Resident individuals only.
₹15.00 lakh
Only salaried income gets the standard deduction.
Affects the old regime only.
Deductions
These count under the old regime only. The new regime disallows almost all of them, which is the trade-off for its wider slabs.
Limit ₹1,50,000
Limit ₹1,00,000
Limit ₹2,00,000
Limit ₹50,000
Limit ₹varies
Total deductions: ₹0
Your tax, both regimes compared
—
New regime
Default₹0
- Taxable income
- —
- Tax before rebate
- —
- Rebate 87A
- —
- Surcharge
- —
- Cess 4%
- —
Old regime
Cheaper₹0
- Taxable income
- —
- Tax before rebate
- —
- Rebate 87A
- —
- Surcharge
- —
- Cess 4%
- —
Results update as you type.
New regime slabs
| Income | Rate | Tax on this slab |
|---|
How the two regimes differ
The new regime offers wider slabs, a larger standard deduction of ₹75,000 and a much bigger section 87A rebate, but disallows nearly every other deduction. The old regime has narrower slabs and a ₹50,000 standard deduction, but permits 80C, 80D, HRA, home loan interest and the rest.
There is no universally better answer. The more you genuinely claim, the likelier the old regime wins. Since AY 2024-25 the new regime has been the default, so doing nothing means being taxed under it.
The ₹12 lakh rebate is not a cliff
Under the new regime, a resident with taxable income up to ₹12,00,000 pays no tax at all, because the ₹60,000 rebate cancels the ₹60,000 due. The obvious worry is what happens at ₹12,00,001.
Marginal relief handles it. Rather than the rebate vanishing and a ₹60,000 bill appearing, tax is capped at the amount by which income exceeds ₹12,00,000. Earn ₹12,01,000 and the tax is about ₹1,000. Normal slab tax only takes over once the two cross, at roughly ₹12,70,590.
tax = min(slab tax, taxable income − 12,00,000)
relief ends where 60,000 + 0.15x = x, so x ≈ 70,588
A good many calculators implement this as a hard cliff and overstate the tax by tens of thousands of rupees across that band.
Surcharge and cess
Surcharge is an extra charge on the tax itself once income passes ₹50 lakh, rising in steps. Above ₹5 crore it is 25% under the new regime but 37% under the old — a difference worth crores at the top end. Marginal relief applies at every surcharge threshold too, so crossing one never costs more than the income that crossed it.
Health and education cess of 4% is then charged on tax plus surcharge. Unlike surcharge, the cess carries no marginal relief, which is why crossing a threshold costs the excess plus four per cent of it rather than exactly the excess.
Frequently asked questions
Is income up to ₹12.75 lakh really tax free?
For a salaried person under the new regime, yes. The ₹75,000 standard deduction brings ₹12,75,000 of salary down to ₹12,00,000 of taxable income, and the section 87A rebate of ₹60,000 exactly cancels the tax due at that level. Someone who is not salaried does not get the standard deduction, so their threshold is ₹12,00,000.
What happens if I earn one rupee over ₹12 lakh?
Far less than you would expect, because of marginal relief. The rebate does not vanish at a cliff edge: tax is capped at the amount by which your income exceeds ₹12,00,000, so earning ₹12,01,000 costs about ₹1,000 in tax, not ₹60,000. Normal slab tax only takes over at roughly ₹12,70,590. Many calculators implement this as a cliff and overstate the tax by tens of thousands.
Which regime should I choose?
It depends entirely on your deductions. The new regime has wider slabs and a bigger standard deduction but disallows almost everything else. The old regime has narrower slabs but permits 80C, 80D, HRA, home loan interest and more. As a rough guide, the more you claim, the likelier the old regime wins — and the comparison above works it out on your actual numbers rather than a rule of thumb.
Which regime applies if I do nothing?
The new regime. It has been the default since AY 2024-25, so you must actively opt out to be taxed under the old one. Note also that the option to withdraw from the new regime is not available after the return due date under section 139(1).
What is the surcharge and when does it apply?
An additional charge on the tax itself for higher incomes: 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore, and above ₹5 crore it is 25% under the new regime but 37% under the old. Marginal relief applies at every threshold, so crossing one never costs more than the income that crossed it. Cess is then charged on tax plus surcharge, and cess has no marginal relief.
What does this calculator not cover?
Capital gains taxed at special rates, which the 87A rebate does not shelter; income from house property or business; relief under section 89; and the detailed caps on individual deductions. It also assumes you are a resident individual — the 87A rebate is not available to non-residents or HUFs. Treat it as a planning figure and check anything consequential.
Is my income data sent anywhere?
No. Everything runs in your browser. Nothing you enter is transmitted, stored or logged, and no account is required.
Related tools
EMI Calculator
NewWork out the monthly instalment on a home, car, personal or gold loan.
SIP Calculator
NewSee what a monthly mutual fund investment could grow to, with a yearly breakdown.
GST Calculator
NewAdd or remove GST at any Indian slab rate.
Stamp Duty
NewWork out SDLT, LBTT or LTT on a property purchase, including first-time buyer and second-home rules.
UK Take-Home Pay
NewSee your salary after income tax, National Insurance, student loan and pension for the 2026/27 tax year.
Percentage Calculator
NewWork out percentages, increases, decreases and what percent one number is of another.