Compare your estimated income tax under India's Old and New Tax Regimes using your salary, other income, eligible deductions and applicable tax rules for FY 2026–27.
Make an informed financial decision before filing your taxes. Our intuitive Salary Income Tax Calculator India evaluates your tax liability under both taxation frameworks, incorporating the standard deduction, Section 87A rebate, and marginal relief for Assessment Year 2027–28.
An Income Tax Calculator is a specialized financial planning tool designed to estimate an individual's tax liability under the prevailing provisions of the Indian Income-tax Act. Calculating taxes manually in India can be complex due to varying slab rates, itemized deductions, conditional tax rebates under Section 87A, surcharge thresholds, and the 4% Health and Education Cess.
For Assessment Year 2027–28 (Financial Year 2026–27), taxpayers in India have the freedom to evaluate both taxation mechanisms: the conventional Old Tax Regime with eligible deductions, or the simplified Income Tax Calculator New Regime with concessional tax slabs and expanded basic exemptions. Using an interactive simulator helps you ascertain exact net take-home earnings and make strategic long-term decisions, such as allocating surpluses into wealth-building instruments like mutual funds or calculating your retirement corpus.
Choosing between the two taxation systems requires analyzing whether your aggregate eligible exemptions and deductions offset the lower tax slab rates offered by the New Regime. The New Tax Regime remains the default tax regime under Section 115BAC, while the Old Tax Regime must be consciously opted for at the time of filing your ITR.
| Tax Parameter | Old Tax Regime (FY 2026–27) | New Tax Regime (FY 2026–27) |
|---|---|---|
| Basic Exemption Limit | ₹2.5 Lakh (Below 60 yrs) ₹3.0 Lakh (Senior Citizens 60–79) ₹5.0 Lakh (Super Seniors 80+) |
₹4.0 Lakh (Uniform for all individual age categories) |
| Standard Deduction (Salaried) | ₹50,000 | ₹75,000 |
| Section 87A Tax Rebate | 100% tax rebate up to taxable income of ₹5,00,000 (Max rebate ₹12,500) | 100% tax rebate up to taxable income of ₹12,00,000 (Max rebate ₹60,000) |
| Effective Zero-Tax Salary Limit | ₹5,50,000 (with ₹50k Standard Deduction) | ₹12,75,000 (with ₹75k Standard Deduction) |
| Section 80C Deductions (ELSS, PF, PPF) | Allowed up to ₹1,50,000 | Not Allowed |
| Section 80D Health Insurance | Allowed (₹25k self/family + up to ₹50k parents) | Not Allowed |
| HRA & LTA Exemptions | Allowed (subject to statutory limits) | Not Allowed |
| Home Loan Interest (Self-occupied) | Allowed up to ₹2,00,000 under Section 24(b) | Not Allowed |
| Employer NPS (Sec 80CCD 2) | Allowed (up to 10%/14% of salary) | Allowed (up to 14% of basic salary) |
| Highest Surcharge Rate | 37% (for income exceeding ₹5 Crore) | Capped at 25% (for income exceeding ₹2 Crore) |
Neither regime is universally superior. If you service a substantial housing loan, pay house rent, and exhaust your Section 80C and 80D limits, the Old vs New Tax Regime Calculator will frequently indicate that the Old Regime produces lower net tax liability. Conversely, if you do not carry major deductible expenses, the New Regime’s ₹75,000 standard deduction and generous ₹12 Lakh zero-tax rebate limit generally yield superior take-home pay.
Our Income Tax Calculator India FY 2026-27 provides instant, accurate comparisons across both tax regimes in six straightforward steps:
Choose your age bracket (under 60, senior citizen, or super senior citizen) and income type (salaried or self-employed).
Type in your annual gross salary or professional turnover after removing tax-free statutory reimbursements.
Include interest received from fixed deposits, savings accounts, or freelance consulting revenues.
Input investments under Section 80C, mediclaim premiums under 80D, HRA claims, and self-occupied housing loan interest.
Our calculation engine applies statutory limits, Section 87A rebate rules, and applicable surcharges instantly.
Inspect which tax regime generates lower liability, evaluate monthly deductions, and optimize your monthly budget.
To understand how deductions alter the tax outcome, consider an illustrative case of a salaried individual (aged 35) earning a gross annual salary of ₹15,00,000 with ₹25,000 interest income, who claims common deductions under the Old Regime:
| Calculation Step | Old Tax Regime | New Tax Regime |
|---|---|---|
| Gross Income | ₹15,25,000 | ₹15,25,000 |
| Standard Deduction | −₹50,000 | −₹75,000 |
| Itemized Deductions (80C, 80D, HRA, 24b, NPS) | −₹4,35,000 | ₹0 (Disallowed) |
| Taxable Income | ₹10,40,000 | ₹14,50,000 |
| Tax Before Rebate | ₹1,24,500 | ₹97,500 |
| Section 87A Rebate | ₹0 (Income > ₹5L) | ₹0 (Income > ₹12L) |
| Health & Education Cess (4%) | ₹4,980 | ₹3,900 |
| Total Estimated Tax Payable | ₹1,29,480 | ₹1,01,400 |
Result: Despite claiming ₹4,35,000 in itemized deductions under the Old Regime, the New Tax Regime saves this individual ₹28,080 due to the expanded 5%, 10%, and 15% tax slabs up to ₹16 Lakh. Use our Income Tax Calculator with Deductions to test your exact numbers.
This tax simulation suite is tailored to a broad spectrum of individual taxpayers in India:
Note: This calculator currently supports individual resident taxpayers. It does not compute tax liabilities for HUFs, partnership firms, LLPs, or corporate entities. Special-rate incomes (such as short-term or long-term capital gains under Sections 111A, 112, or 112A) are subject to standalone statutory rates and should be computed separately.
An Income Tax Calculator works by processing your total earnings across different heads of income (salary, property, interest, and other sources), applying regime-specific allowable deductions, and computing slab-wise income tax. It subsequently verifies eligibility for the Section 87A rebate and marginal relief, factors in surcharges for high earners, and adds the mandatory 4% Health and Education Cess to arrive at the final payable amount.
The Old Tax Regime features higher tax rates but allows a comprehensive range of itemized exemptions and deductions, including Sections 80C, 80D, HRA, and home loan interest. The New Tax Regime features wider, lower tax slabs and an increased Section 87A rebate (zero tax on taxable income up to ₹12 Lakh), but disallows most conventional deductions other than the salaried standard deduction of ₹75,000 and employer NPS contributions.
There is no universal choice. The New Regime is generally optimal for taxpayers who have few deductions or prefer not to lock up capital in mandatory financial products. However, if your eligible deductions (such as HRA, 80C, 80D, and home loan interest) exceed your personalized breakeven threshold (typically around ₹3.75L to ₹4.25L depending on income), the Old Regime may deliver greater tax savings.
Under the New Tax Regime for FY 2026–27, you cannot claim deductions under Sections 80C, 80D, 80TTA, or Section 24(b) for self-occupied property. However, salaried taxpayers are legally entitled to the ₹75,000 Standard Deduction and deduction for employer contributions to the National Pension Scheme under Section 80CCD(2).
Yes. The calculator fully computes the statutory Section 87A tax rebate (up to ₹60,000 under the New Regime and up to ₹12,500 under the Old Regime), models marginal relief provisions near the rebate threshold, applies applicable surcharges, and appends the 4% Health and Education Cess.
Yes. This tool is built specifically as a comprehensive salary income tax calculator India. When you select 'Salaried Employee', the engine automatically credits the applicable standard deduction (₹75,000 in the New Regime and ₹50,000 in the Old Regime) and permits entry of HRA exemptions.
No. This calculator provides educational and indicative estimates based on your entered parameters and statutory tax rules. It is not an official government assessment, return filing utility, or legal tax advice. Individual tax liabilities can be influenced by special tax rates, loss set-offs, clubbing provisions, and advance tax interest.
This calculator strictly supports Financial Year 2026–27 (Assessment Year 2027–28), incorporating the verified tax slabs, standard deductions, and Section 87A rebate structures enacted under Indian income tax provisions.
Tax planning is just one pillar of sound personal finance. Once you have optimized your tax outgo under the appropriate regime, redirecting your monthly tax savings toward disciplined investing will accelerate your long-term wealth creation. Explore our suite of financial planning calculators and educational guides:
This calculator's tax engine has been audited against statutory publications of the Income Tax Department of India, Union Budget provisions, and Section 115BAC notifications. Rules reflect the ₹4 Lakh basic exemption and ₹75,000 standard deduction under the New Regime.