Income Tax Calculator FY 2026-27
Himanshu Grewal
Founder • Calculator Tool Developer
Builds fast, accurate, and user-friendly online calculators for finance, education, and everyday use.
View full profile →Enter your salary to calculate your income tax instantly. Compare the old vs new regime for FY 2026-27 to maximize your savings.
Step 1: Basic Details
Table of Contents
- How This Income Tax Calculator Works
- How to Use Tax Calculator Online
- Income Tax Slabs for FY 2026-27
- Old vs New Tax Regime Comparison Table
- Zero Tax on Income Up to ₹12 Lakh — Explained
- How is Income Tax Calculated on Salary?
- What is Marginal Relief in Income Tax?
- Income Tax Calculation Example
- Major Deductions and Exemptions
- Who Can Use This Income Tax Calculator?
- Frequently Asked Questions
This income tax calculator is built using the latest available provisions of the Income Tax Act, 1961 and recent Union Budget updates for FY 2026-27. The calculator includes standard deduction rules, Section 87A rebate calculations, applicable surcharge rates, and Health & Education Cess to provide highly accurate tax estimates. Salaried individuals can also review the official Income Tax Return (ITR) eligibility guidance for AY 2026-27 on IncomeTax.gov.in . For official tax filing and legal advice, always consult a certified Chartered Accountant (CA) or tax professional.
How This Income Tax Calculator Works
To provide accurate tax calculations based on the latest available tax rules, this new tax regime calculator is programmed directly with the provisions of the Income Tax Act, 1961. The calculation methodology strictly follows:
Slab-Based Computation
Applies progressive tax rates exactly as proposed in the latest Union Budget.
Section 87A Rebate Logic
Automatically grants up to ₹60,000 rebate in the new regime (for income up to ₹12L) and ₹12,500 in the old regime (for income up to ₹5L).
Surcharge, Cess & Marginal Relief
Automatically computes the mandatory 4% Health & Education Cess. If your income exceeds ₹50 Lakhs, it applies the exact surcharge—intelligently capping the maximum surcharge at 25% under the New Regime, while applying up to 37% under the Old Regime. Marginal relief is also factored in to protect you from sudden tax spikes.
How to Use the Income Tax Calculator
Want to know how to calculate income tax on salary with example data? Follow these steps to get your final tax liability:
1 Select Year & Age
Choose FY 2026-27. Select your age group, as old regime exemptions vary for senior citizens.
2 Enter Salary
Input your gross annual income. For exact in-hand salary calculations, you can also use our Salary Calculator.
3 Add Deductions
Enter your HRA (use our HRA Calculator to find the exact exempt amount), home loan interest, and 80C investments.
4 Compare Regimes
The calculator will output a side-by-side comparison, showing you exactly which tax regime saves you the most money.
Income Tax Slabs for FY 2026-27 (AY 2027-28)
These are the standard income tax slab rates for individuals (resident or non-resident) as per Section 115BAC of the Income Tax Act, 1961.
New Tax Regime Slabs (All Ages)
| Income Tax Slab | Income Tax Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 - ₹8,00,000 | 5% above ₹4,00,000 |
| ₹8,00,001 - ₹12,00,000 | ₹20,000 + 10% above ₹8,00,000 |
| ₹12,00,001 - ₹16,00,000 | ₹60,000 + 15% above ₹12,00,000 |
| ₹16,00,001 - ₹20,00,000 | ₹1,20,000 + 20% above ₹16,00,000 |
| ₹20,00,001 - ₹24,00,000 | ₹2,00,000 + 25% above ₹20,00,000 |
| Above ₹24,00,000 | ₹3,00,000 + 30% above ₹24,00,000 |
Old Tax Regime Slabs
Individuals (Below 60 Yrs)
| Income Tax Slab | Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 - ₹5,00,000 | 5% |
| ₹5,00,001 - ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Senior Citizens (60 - 80 Yrs)
| Income Tax Slab | Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 - ₹5,00,000 | 5% |
| ₹5,00,001 - ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Super Senior (80+ Yrs)
| Income Tax Slab | Rate |
|---|---|
| Up to ₹5,00,000 | Nil |
| ₹5,00,001 - ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Old vs New Tax Regime Comparison Table
For many salaried individuals with high deductions such as HRA, home loan interest, and Section 80C investments, the old tax regime may result in lower tax liability. However, the new regime is simpler. Here is a quick comparison:
| Feature / Benefit | New Tax Regime | Old Tax Regime |
|---|---|---|
| Standard Deduction | ₹75,000 | ₹50,000 |
| Section 87A Rebate | ₹60,000 (Income up to ₹12L) | ₹12,500 (Income up to ₹5L) |
| Section 80C (PPF, LIC, etc.) | Not Allowed | Allowed (Up to ₹1.5L) |
| HRA Exemption | Generally Not Available | Allowed |
| Home Loan Interest | Not Allowed (Self-occupied) | Allowed (Up to ₹2L) |
| Default Regime | Yes | No (Must opt-in) |
Zero Tax on Income Up to ₹12 Lakh — Explained
For salaried individuals under the new regime, a gross salary of up to approximately ₹12.75 Lakhs may result in zero tax liability after the ₹75,000 standard deduction and Section 87A rebate.
| Tax Regime | Maximum Rebate | Eligible Taxable Income |
|---|---|---|
| New Tax Regime | ₹60,000 | Up to ₹12 Lakhs |
| Old Tax Regime | ₹12,500 | Up to ₹5 Lakhs |
Example of Zero Tax Calculation
Scenario: An employee earning ₹12.75 Lakhs per year
| Gross Salary | ₹12,75,000 |
| Less: Standard Deduction | - ₹75,000 |
| Taxable Income | ₹12,00,000 |
| Tax Calculation on ₹12 Lakh | |
| Up to ₹4,00,000 (Nil) | Nil |
| ₹4,00,001 - ₹8,00,000 (5%) | ₹20,000 |
| ₹8,00,001 - ₹12,00,000 (10%) | ₹40,000 |
| Total Tax Calculated | ₹60,000 |
| Less: Section 87A Rebate | - ₹60,000 |
| Net Tax to Pay | ₹0 (Zero) |
How is Income Tax Calculated on Salary?
If you want to know how to calculate tax on taxable income manually, follow these standard steps:
Calculate gross annual income (Salary + Bonuses + Other Sources).
Subtract exemptions and deductions (like Standard Deduction, HRA, 80C).
Find your Net Taxable Income.
Apply the progressive slab rates to your taxable income.
Deduct the rebate under Section 87A (if your income is eligible).
Add the applicable Surcharge and 4% Health & Education Cess.
How to Calculate Surcharge and Cess
Once your base tax is calculated, two additional charges are applied according to the Income Tax Act:
Health and Education Cess
A mandatory 4% tax applied to everyone. It is calculated as 4% of your total base tax (Tax + Surcharge).
Surcharge Rates
If your taxable income crosses ₹50 Lakhs, a surcharge of 10% applies. It increases to 15% (above ₹1 Crore), 25% (above ₹2 Crores), and up to 37% in the old regime (above ₹5 Crores).
Income Tax Calculation Example for FY 2026-27
The following example shows how taxable income, deductions, and final income tax are calculated under the new tax regime using our income tax calculator India tool.
| Particulars | Amount |
|---|---|
| Gross Salary | ₹18,00,000 |
| Standard Deduction | - ₹75,000 |
| Taxable Income | ₹17,25,000 |
| Income Tax | ₹1,45,000 |
| Health & Education Cess (4%) | ₹5,800 |
| Final Tax Liability | ₹1,50,800 |
What is Marginal Relief in Income Tax?
Marginal relief is a special tax benefit provided to high-income taxpayers whose income just barely crosses the surcharge thresholds (like ₹50 Lakhs or ₹1 Crore).
When your income crosses a surcharge limit, the sudden tax penalty can actually be higher than the extra money you earned.
The Marginal Relief rule ensures that your additional tax payable is never more than the additional income earned above that threshold limit.
| Income Threshold | Surcharge Jump | Applicability |
|---|---|---|
| Income exceeds ₹50 Lakhs | 0% to 10% | Both Regimes |
| Income exceeds ₹1 Crore | 10% to 15% | Both Regimes |
| Income exceeds ₹2 Crores | 15% to 25% | Both Regimes |
| Income exceeds ₹5 Crores | 25% to 37% | Old Regime Only (Max 25% in New) |
Major Deductions and Exemptions Under Income Tax
If you opt for the Old Tax Regime, you can use these popular deductions. Some tools like our SIP Calculator or CAGR Calculator can help you plan your ELSS tax-saving investments.
Section 80C Deduction
Section 80D Deduction
Home Loan Tax Benefits
Who Can Use This Income Tax Calculator?
This online income tax calculator India tool is designed for different types of taxpayers who want to estimate their tax liability accurately under the old and new tax regimes.
Salaried Employees
Compare old vs new tax regime, calculate salary tax, standard deduction, HRA exemption, and find your exact in-hand tax liability.
Freelancers & Consultants
Estimate tax payable on professional income, freelance earnings, and strategically plan your tax-saving investments.
Pensioners & Seniors
Calculate income tax using specific senior and super senior citizen slab rates, and easily understand available age-based rebates.
Business Owners
Estimate your annual income tax liability, compute high-income surcharge, and compare tax regimes for smarter financial planning.
Frequently Asked Questions
What is Section 87A rebate?
Is HRA allowed in the new tax regime?
Is income tax calculated monthly or yearly?
How much tax do I pay on a ₹15 lakh salary?
Can senior citizens use this calculator?
Does this calculator include cess?
Is TDS the same as income tax?
What is taxable income?
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