Income Tax Calculator
Calculate your tax under the New Tax Regime for FY 2026-27 (AY 2027-28).
Estimate only. Not tax advice — confirm with a tax professional.
New Tax Regime slabs, FY 2026-27
The New Tax Regime is now the default filing option, and continues unchanged from FY 2025-26 into FY 2026-27 — the Union Budget 2026 made no changes to rates or thresholds. It uses seven progressive slabs:
| Taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | 0% |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Only income within each band is taxed at that band's rate — crossing into the 15% band doesn't mean your whole income gets taxed at 15%, only the portion inside that band.
Salaried employees and pensioners get a flat ₹75,000 standard deduction before the slabs apply — self-employed individuals, HUFs, and similar categories don't get this deduction.
Why income up to ₹12.75 lakh is effectively tax-free
Section 87A provides a full rebate of up to ₹60,000 for anyone with taxable income at or below ₹12,00,000 — which cancels out the tax entirely for that band. Combined with the ₹75,000 standard deduction, a salaried employee's gross salary can be up to ₹12,75,000 before any tax is owed at all.
What happens just above ₹12 lakh
Without protection, someone earning ₹12,00,001 in taxable income would lose the entire ₹60,000 rebate for one extra rupee of income — a harsh cliff edge. Marginal relief fixes this: if your calculated tax would exceed the amount your taxable income exceeds ₹12,00,000 by, your tax is capped at just that excess. This calculator applies marginal relief automatically.
This calculator doesn't include surcharge (which applies only above ₹50 lakh taxable income) or Section 80CCD(2) employer NPS contributions, which can further reduce taxable income under the new regime. For high earners or those with employer NPS benefits, treat this as a starting estimate.
FAQ
Can I still use the Old Tax Regime?
Yes, it remains available as an opt-in choice — generally worth comparing if you claim large deductions like HRA, Section 80C investments, or home loan interest, none of which apply under the New Regime.
Is the cess included in the "total tax payable" figure?
Yes — the 4% Health & Education Cess is calculated on your tax after rebate/relief and included in the total shown.