Income Tax Calculator — Old vs New Regime Comparison
Compare your income tax under the old and new tax regimes for FY 2026-27 (AY 2027-28). Enter your income and deductions to see which regime saves you more tax.
receipt_longDeductions (Old Regime Only)
compareTax Comparison — FY 2026-27
How Income Tax is Calculated in India
Income tax in India is calculated based on tax slabs — progressive brackets where higher portions of your income are taxed at higher rates. For FY 2026-27, taxpayers can choose between the old regime (with deductions like 80C, 80D, HRA) or the new regime (lower slabs, minimal deductions). The new regime is the default unless you specifically opt for the old regime.
In the old regime, you can claim deductions under Section 80C (up to ₹1.5 lakh for PPF, ELSS, LIC, EPF), Section 80D (health insurance premiums), HRA exemption, home loan interest under Section 24(b), and NPS contribution under 80CCD(1B). These deductions reduce your taxable income before applying the slab rates. The standard deduction is ₹50,000 for salaried individuals.
In the new regime for FY 2026-27, the standard deduction is ₹75,000 and tax slabs start with a nil rate up to ₹4 lakh, followed by 5% up to ₹8 lakh, 10% up to ₹12 lakh, 15% up to ₹16 lakh, 20% up to ₹20 lakh, 25% up to ₹24 lakh, and 30% above ₹24 lakh. Section 87A provides a full rebate if total income does not exceed ₹12 lakh (effectively ₹12.75 lakh with standard deduction), making the tax zero for most middle-income earners.
workspace_premiumWhy Use a Tax Calculator?
Choose the Right Regime
See a clear side-by-side comparison of your tax liability under both regimes. Make an informed choice based on your actual income and deductions — not guesswork.
Maximize Tax Savings
Identify how much you need to invest in 80C, 80D, and NPS to optimize your tax savings under the old regime. Plan your investments before the financial year ends.
Understand Your Slabs
See exactly how much tax applies at each slab, so you understand where your money goes. This helps in salary negotiations and financial planning.
Updated for FY 2026-27
Tax slabs, standard deduction, and rebate limits are updated to reflect the latest Union Budget 2025 changes, so your calculation matches the current rules.
help_outlineFrequently Asked Questions
Which tax regime is better for FY 2026-27 — old or new?
It depends on your deductions. If your total deductions (80C, 80D, HRA, home loan interest, NPS) exceed approximately ₹3.75 lakh, the old regime may save more tax. If your deductions are lower, the new regime's lower slab rates and higher standard deduction (₹75,000) usually result in lower tax. Use this calculator with your actual numbers to find out.
What is the standard deduction for FY 2026-27?
For salaried individuals, the standard deduction is ₹50,000 under the old regime and ₹75,000 under the new regime for FY 2026-27. This deduction is automatically applied to your gross salary income — no proof or investment required.
What is Section 87A rebate and who gets it?
Section 87A provides a tax rebate for resident individuals. Under the old regime, if your total taxable income is up to ₹5 lakh, you get a rebate of up to ₹12,500, effectively making your tax zero. Under the new regime for FY 2026-27, if your total income is up to ₹12 lakh, the full tax is rebated, making tax zero for income up to approximately ₹12.75 lakh (after standard deduction).
Are deductions available under the new tax regime?
The new tax regime for FY 2026-27 allows very limited deductions — primarily the standard deduction of ₹75,000 and employer's NPS contribution under 80CCD(2). Most deductions like 80C, 80D, HRA exemption, and home loan interest under Section 24(b) are not available. The trade-off is significantly lower tax slab rates.
How is Health & Education Cess calculated?
A Health & Education Cess of 4% is levied on the total income tax amount (after rebate) under both regimes. For example, if your tax after rebate is ₹50,000, the cess would be ₹2,000, making your total tax ₹52,000. This cess funds healthcare and education initiatives.
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Pair this calculator with our tax planning guides for informed decisions. Old vs New Tax Regime · Section 80C Deductions · How to File ITR Online · HRA Exemption Calculation
This income tax calculator is for educational and illustrative purposes only. Results are based on the standard FY 2026-27 tax slabs and rules. Surcharge for high incomes, special incomes (capital gains, etc.), and employer-specific allowances are not included. This is not tax advice. Always consult a Chartered Accountant or qualified tax professional before filing your ITR.
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