Income Tax Calculator for FY 2026–27
Last Updated: 1 March 2026 | FY 2026–27 | AY 2027–28
Your Complete Tax Intelligence Dashboard - Calculate, Optimize, and Secure Your Returns
Updated with Union Budget 2026 | Income Tax Act, 2025 effective from 1 April 2026
As per Union Budget 2026, income tax slabs remain unchanged. Revised & belated return deadline extended to 31 March. View all Budget 2026 changes →
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1
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Input your salary, other income sources, and any deductions you're claiming.
2
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We calculate tax, find savings opportunities, and check for compliance risks.
3
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How Income Tax is Calculated in India (FY 2026-27)
India offers two income tax regimes for individual taxpayers — the New Tax Regime (default from FY 2023-24 onwards) and the Old Tax Regime. Below is a complete breakdown of how income tax is computed, including slab rates, deductions, rebate, surcharge and cess for the financial year 2026-27 (Assessment Year 2027-28).
Income Tax Slab Rates — New Regime (Default) FY 2026-27
Under the New Tax Regime (applicable by default under the Income Tax Act, 2025), the following slab rates apply for individuals below 60 years:
| Income Slab | Tax Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹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% |
Income Tax Slab Rates — Old Regime FY 2026-27
Taxpayers who opt out of the new regime can use the Old Tax Regime, which allows multiple deductions and exemptions:
| Income Slab (Below 60 years) | Tax 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 years) get an exemption limit of ₹3,00,000, and super senior citizens (80+ years) get ₹5,00,000 under the old regime.
Standard Deduction
Under the New Tax Regime, a standard deduction of ₹75,000 is available for salaried individuals and pensioners (increased from ₹50,000 in Budget 2024). This is deducted from gross salary before applying slab rates. Under the Old Regime, the standard deduction remains at ₹50,000.
Rebate under Section 87A
Under the New Regime, if your total income (after deductions) does not exceed ₹12,00,000, you are eligible for a rebate of up to ₹60,000 under Section 87A. This effectively makes income up to ₹12 lakh completely tax-free under the new regime.
Under the Old Regime, the rebate is available if total income does not exceed ₹5,00,000, with a maximum rebate of ₹12,500.
Surcharge and Health & Education Cess
Surcharge is an additional tax levied on taxpayers whose total income exceeds certain thresholds:
| Total Income | Surcharge Rate |
|---|---|
| ₹50 lakh – ₹1 crore | 10% |
| ₹1 crore – ₹2 crore | 15% |
| Above ₹2 crore (New Regime) | 25% |
| Above ₹5 crore (Old Regime) | 37% |
Health & Education Cess of 4% is charged on (income tax + surcharge). This funds primary education and healthcare programs.
Worked Example: ₹12 Lakh Salary (New Regime FY 2026-27)
Gross Salary: ₹12,00,000
Less: Standard Deduction (u/s 16): − ₹75,000
Net Taxable Income: ₹11,25,000
Tax Computation:
Up to ₹4,00,000: Nil
₹4,00,001 – ₹8,00,000 @ 5%: ₹20,000
₹8,00,001 – ₹11,25,000 @ 10%: ₹32,500
Total Tax Before Rebate: ₹52,500
Less: Section 87A Rebate (income ≤ ₹12L): − ₹52,500
Tax Payable: ₹0 (Zero)
A person earning ₹12 lakh salary pays zero tax under the new regime due to the standard deduction and Section 87A rebate.
Frequently Asked Questions about Income Tax FY 2026-27
What are the income tax slabs for FY 2026-27 under the new regime?
Under the New Tax Regime for FY 2026-27, the slabs are: Up to Rs 4 lakh - Nil, Rs 4-8 lakh - 5%, Rs 8-12 lakh - 10%, Rs 12-16 lakh - 15%, Rs 16-20 lakh - 20%, Rs 20-24 lakh - 25%, and above Rs 24 lakh - 30%. The new regime is the default regime under the Income Tax Act, 2025.
What is the standard deduction for salaried employees in FY 2026-27?
For FY 2026-27, the standard deduction under the New Tax Regime is Rs 75,000 (increased from Rs 50,000 in Budget 2024). Under the Old Regime, the standard deduction remains Rs 50,000. This deduction is available to all salaried individuals and pensioners without any documentation requirement.
How does the Section 87A rebate work in FY 2026-27?
Under the New Tax Regime, if your total taxable income does not exceed Rs 12,00,000, you are eligible for a rebate of up to Rs 60,000 under Section 87A. This effectively makes income up to Rs 12 lakh tax-free. Under the Old Regime, the rebate is Rs 12,500 for income up to Rs 5,00,000.
Which is better — old regime or new regime for FY 2026-27?
It depends on your deductions. The new regime offers lower slab rates and a Rs 75,000 standard deduction but does not allow most deductions (80C, 80D, HRA, etc.). If your total deductions under the old regime exceed the breakeven point (typically Rs 3.75-4.25 lakh depending on income), the old regime saves more tax. Use our calculator above to compare both regimes for your exact income.
How do I calculate my income tax for FY 2026-27?
Step 1: Calculate your gross total income (salary + other income). Step 2: Subtract standard deduction (Rs 75,000 new regime / Rs 50,000 old regime). Step 3: Subtract eligible deductions (old regime only — 80C, 80D, HRA, etc.). Step 4: Apply the applicable slab rates. Step 5: Apply Section 87A rebate if eligible. Step 6: Add surcharge (if income exceeds Rs 50 lakh) and 4% health and education cess. The result is your total tax liability.
What is the 4% Health and Education Cess?
Health and Education Cess is a 4% charge levied on the total income tax amount (including surcharge, if any). It is used to fund primary education and healthcare. For example, if your computed tax is Rs 1,00,000, the cess would be Rs 4,000, making total tax Rs 1,04,000. Cess applies under both old and new regimes.
When does surcharge apply on income tax?
Surcharge applies when total income exceeds Rs 50 lakh. The rates are: 10% for income between Rs 50 lakh and Rs 1 crore, 15% for Rs 1-2 crore, and 25% for above Rs 2 crore under the new regime (capped at 25%). Under the old regime, the maximum surcharge can go up to 37% for income above Rs 5 crore. Marginal relief is available to ensure surcharge does not exceed the additional income.
Who is required to file an income tax return in India?
You must file an ITR if: (a) your gross total income exceeds Rs 2,50,000 (Rs 3,00,000 for senior citizens), (b) you want to claim a tax refund, (c) you have foreign assets or income, (d) your TDS/TCS exceeds Rs 25,000, (e) your deposits in savings accounts exceed Rs 50 lakh, or (f) you have spent more than Rs 2 lakh on foreign travel. The due date for salaried individuals is 31 July of the assessment year.