Income tax calculator for tax year 2026-27

What this calculator does

It works out your tax under both regimes for tax year 2026-27 and shows the slab-by-slab arithmetic, so you can see where the tax actually builds up. It applies the standard deduction under section 19, the rebate under section 156 (the old 87A), marginal relief just above ₹12 lakh, surcharge at higher incomes and the 4% cess on top.

Enter your gross annual salary and, if you want an honest comparison, your real old-regime deductions. Leaving them blank flatters the new regime for anyone with a genuine section 123 (80C) and HRA position.

The slabs for tax year 2026-27

The Income-tax Act, 2025 took over on 1 April 2026 and "tax year" replaced "financial year" and "assessment year". The slab rates did not change.

Both regimes add a 4% health and education cess on the tax. The full picture, including senior citizen limits, is in the 2026-27 slab guide.

Why ₹12.75 lakh is the number people quote

In the new regime the section 156 rebate cancels up to ₹60,000 of tax as long as taxable income is within ₹12 lakh. Salaried people also get the ₹75,000 standard deduction, so a gross salary of ₹12,75,000 lands at exactly ₹12 lakh taxable and pays nothing.

The rebate is a discount at the end, not a bigger nil slab. Just above the line, marginal relief caps your tax at the amount by which taxable income crosses ₹12 lakh, so a small raise over the threshold costs roughly the raise itself rather than the ₹60,000-plus the slabs would produce. The mechanics are in income up to ₹12 lakh explained.

Which regime wins

For most salaried people, the new one. The old regime only pulls ahead when deductions offset its higher rates. These are the break-even totals, worked out with this calculator:

That means a big metro HRA, ₹2 lakh of home loan interest, a full section 123 (80C) and health insurance all at once, not 80C alone. With only salary income you can switch regimes every year when you file, whatever you told your employer for TDS. The regime comparison guide works four salary levels end to end.

What the calculator leaves out

• Capital gains, which have their own rates and generally sit outside the rebate.
• House property, business and other income.
• Advance tax and interest under sections 424 and 425 (the old 234B and 234C). See advance tax dates for 2026-27.

Treat the result as a planning figure rather than a filed return. For anything unusual, check with a CA.

From tax to take-home

Income tax is one of three deductions between gross salary and your bank credit, alongside provident fund and professional tax. To go from CTC to a monthly figure, use the in-hand salary calculator, or the in-hand salary by package pages for a quick answer at a given LPA.