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An income tax calculator India taxpayers rely on answers a question that determines how much of your salary you actually keep: how much tax do I owe? Enter your income, deductions, and chosen regime, and a reliable calculator returns your tax liability under both the old and new regimes side by side. For FY 2026-27, the Income-tax Act, 2025 has replaced the 1961 Act, but the slab rates and deductions remain largely unchanged. Whether you are a salaried employee comparing regime options, a freelancer estimating advance tax, or a pensioner checking whether the new regime suits you better, an accurate income tax calculator removes the guesswork from a decision that can swing your annual tax outgo by lakhs.
The Union Budget 2026 made no changes to the slab structure under either regime. The rates announced in Budget 2025 continue through FY 2026-27 (AY 2027-28)[reference:0]. The basic exemption limit remains Rs 4,00,000 under the new regime and Rs 2,50,000 under the old regime[reference:1].
Here is the complete slab comparison for individual taxpayers below 60 years of age:
| Old Regime Slab | Rate | New Regime Slab | Rate |
|---|---|---|---|
| Up to Rs 2,50,000 | Nil | Up to Rs 4,00,000 | Nil |
| Rs 2,50,001 – Rs 5,00,000 | 5% | Rs 4,00,001 – Rs 8,00,000 | 5% |
| Rs 5,00,001 – Rs 10,00,000 | 20% | Rs 8,00,001 – Rs 12,00,000 | 10% |
| Above Rs 10,00,000 | 30% | Rs 12,00,001 – Rs 16,00,000 | 15% |
| Rs 16,00,001 – Rs 20,00,000 | 20% | ||
| Rs 20,00,001 – Rs 24,00,000 | 25% | ||
| Above Rs 24,00,000 | 30% |
Senior citizens (60 to 79 years) get a higher basic exemption of Rs 3,00,000 under the old regime, while super senior citizens (80 years and above) get Rs 5,00,000. The new regime offers the same slabs regardless of age.[reference:2]
Standard deduction is one of the few reliefs available under both regimes, but the amounts differ sharply. Under the new regime, salaried employees and pensioners can claim Rs 75,000. Under the old regime, the limit is Rs 50,000[reference:3]. This Rs 25,000 gap is one of the structural advantages the new regime carries for salaried taxpayers.
The practical impact is significant. A salaried employee earning Rs 12,75,000 under the new regime effectively pays zero tax: the Rs 75,000 standard deduction brings taxable income down to Rs 12,00,000, and the Section 87A rebate of Rs 60,000 wipes out the remaining liability[reference:4].
The Section 87A rebate is the provision that makes the new regime attractive for middle-income earners. For AY 2026-27, a resident individual under the new regime can claim a rebate of up to Rs 60,000 if total income does not exceed Rs 12,00,000. Under the old regime, the rebate is capped at Rs 12,500 for total income up to Rs 5,00,000[reference:5].
An important distinction: Section 87A is a rebate, not an exemption. Tax is first computed on your total income, and then the rebate reduces the liability. The basic exemption limit under the new regime remains Rs 4,00,000 — the Rs 12,00,000 figure is only the upper income limit for claiming the rebate[reference:6].
Marginal relief is the provision that prevents a situation where earning Re 1 more pushes you into a tax bracket that leaves you worse off than someone earning less. Under the new regime, marginal relief applies to resident individuals with income marginally above Rs 12,00,000[reference:8].
The calculation is straightforward. Suppose your taxable income is Rs 12,10,000. Without marginal relief, the tax works out to Rs 61,500 (5% of Rs 4 lakh + 10% of Rs 4 lakh + 15% of Rs 10,000). With marginal relief, the tax payable is only Rs 10,000 — the exact amount by which your income exceeds Rs 12,00,000[reference:9].
For salaried individuals claiming the Rs 75,000 standard deduction, marginal relief continues to apply on slightly higher gross salaries, broadly up to around Rs 13.5 lakh[reference:10].
Consider a salaried employee, below 60 years, with a gross salary of Rs 15,00,000. Let us calculate tax under both regimes.
Old Regime: Standard deduction of Rs 50,000 brings taxable income to Rs 14,50,000. Assuming no other deductions: tax on first Rs 2.5 lakh is nil; on next Rs 2.5 lakh at 5% is Rs 12,500; on next Rs 5 lakh at 20% is Rs 1,00,000; on remaining Rs 4.5 lakh at 30% is Rs 1,35,000. Total tax before cess is Rs 2,47,500. Add 4% health and education cess: Rs 2,57,400.
New Regime: Standard deduction of Rs 75,000 brings taxable income to Rs 14,25,000. Tax on first Rs 4 lakh is nil; on next Rs 4 lakh at 5% is Rs 20,000; on next Rs 4 lakh at 10% is Rs 40,000; on remaining Rs 2.25 lakh at 15% is Rs 33,750. Total tax before cess is Rs 93,750. Add 4% cess: Rs 97,500[reference:11].
The old regime's appeal lies in the deductions it permits. If you claim a meaningful amount under these heads, the higher slab rates can be offset.
The HRA exemption is calculated as the minimum of three amounts: actual HRA received, rent paid minus 10% of salary, or 50% of salary for metro cities and 40% for non-metro cities[reference:17].
The 2026 change added Bengaluru, Hyderabad, Pune, and Ahmedabad to the metro category. For a professional in Bengaluru with a basic salary of Rs 7,20,000 annually, HRA received of Rs 3,60,000, and rent paid of Rs 3,00,000, the exemption under the non-metro 40% rule was Rs 2,88,000. Under the new metro 50% rule, it rises to Rs 3,00,000 — an additional Rs 12,000 in exemption[reference:18].
The National Pension System offers tax benefits under both regimes, but the scope differs. Under the old regime, you can claim up to Rs 2 lakh in total NPS deductions: Rs 1,50,000 under Section 80CCD(1) and an additional Rs 50,000 under Section 80CCD(1B)[reference:20].
Under the new regime, personal contributions under Sections 80CCD(1) and 80CCD(1B) are not available. However, the employer's contribution under Section 80CCD(2) remains deductible — up to 14% of basic salary plus DA for all employees under the new regime[reference:21]. For government employees, the same 14% limit applies under both regimes.
The decision hinges on the magnitude of your deductions. A simple rule of thumb: if your total deductions under the old regime (HRA + Section 80C + Section 80D + home loan interest + NPS) exceed a certain break-even threshold, the old regime is better. Below that threshold, the new regime wins.
For a taxpayer earning Rs 15,00,000, the break-even deduction level under the old regime is approximately Rs 4,00,000. If your total deductions exceed this, the old regime saves you money. If they fall short, the new regime is cheaper[reference:22]. The exact figure shifts with income level, which is why using a calculator that compares both regimes side by side with your actual deduction figures is the only reliable approach.
Beyond the slab rates, two additional charges apply. Health and education cess is levied at 4% of the total tax (including surcharge, if any) under both regimes.
Surcharge applies on higher incomes. Under the old regime, it is 10% for income between Rs 50 lakh and Rs 1 crore, 15% for Rs 1 crore to Rs 2 crore, 25% for Rs 2 crore to Rs 5 crore, and 37% above Rs 5 crore. Under the new regime, the surcharge is capped at 25%, making it the preferred choice for very high earners[reference:23].
It depends on your deductions. The new regime offers lower slab rates and a higher standard deduction of Rs 75,000. The old regime becomes better if you claim significant HRA, home loan interest, Section 80C, and Section 80D deductions. A salaried employee with no major deductions will almost always pay less tax under the new regime.
Under the new tax regime, a resident individual can earn up to Rs 12,00,000 and pay zero tax after the Section 87A rebate of Rs 60,000. For salaried individuals, the standard deduction of Rs 75,000 pushes this effective limit to Rs 12,75,000.
Under the new regime, the rebate is up to Rs 60,000 for total income up to Rs 12,00,000. Under the old regime, the rebate is up to Rs 12,500 for total income up to Rs 5,00,000. The rebate is only for resident individuals and does not apply to income taxed at special rates like capital gains on listed equity.
Marginal relief ensures that the tax payable on income just above Rs 12,00,000 does not exceed the income earned above that threshold. For example, if your taxable income is Rs 12,10,000, your tax without relief would be Rs 61,500, but with marginal relief it is only Rs 10,000.
No. HRA exemption under Section 10(13A) is available only under the old tax regime. From April 2026, the 50% HRA exemption metro city list has been expanded to include Bengaluru, Hyderabad, Pune, and Ahmedabad, taking the total to eight cities.
Very few. Under the new regime, you can claim the standard deduction of Rs 75,000 and the employer's contribution to NPS under Section 80CCD(2). Deductions like Section 80C, Section 80D, HRA, and home loan interest on self-occupied property are not available.
In closing, an income tax calculator India taxpayers can trust transforms a labyrinth of slabs, rebates, surcharges, and regime-specific deductions into a single clear answer. The choice between the old and new regimes is not permanent for salaried individuals — you can reassess it every year as your income, deductions, and family circumstances evolve. For FY 2026-27, the new regime remains the default and generally benefits those with limited deductions, while the old regime continues to reward taxpayers who claim substantial HRA, home loan interest, and Chapter VI-A investments. Use the income tax calculator on this page, enter your actual salary and deduction figures, and let the numbers — not assumptions — decide which regime leaves more money in your hands.