Income Tax Calculator for Tax Year 2026-27 (FY 2026-27), New and Old Regime

How the tax is worked out, step by step

The calculator follows the order the Act uses, once for each regime. It starts from salary plus other income. From salary it takes the standard deduction under section 19: ₹75,000 in the new regime, ₹50,000 in the old. Your employer's NPS contribution comes off next, then, in the old regime only, the deductions you typed. What is left is taxable income, rounded to the rupee.

The slab table then shows how much of that income falls in each band and what each band costs. From the slab tax it subtracts the section 156 rebate (old 87A), adds surcharge if taxable income is above ₹50 lakh, then adds 4% health and education cess. The total is rounded to the nearest ₹10 and divided by 12 for the monthly figure, which is roughly what your employer should be deducting as TDS if nothing else changes during the year.

The result also shows two rates. The effective rate is total tax divided by total income. The marginal rate is the tax on your next ₹1,000; check it before you ask for a raise, take a freelance job or claim one more deduction.

The ₹12 lakh line and marginal relief

In the new regime the section 156 rebate is up to ₹60,000 when taxable income is ₹12 lakh or less. That is exactly the slab tax on ₹12 lakh, so tax is nil. Go one rupee over and the rebate is lost, which would mean a ₹60,000 bill for ₹1 of extra income. The law prevents that: tax is capped at the income above ₹12 lakh.

The cap has an odd side effect, and the marginal-rate box shows it. Between ₹12 lakh and about ₹12.71 lakh of taxable income, every extra ₹1,000 costs ₹1,040 after cess. You keep none of it. In that range a raise leaves you no better off, while the same amount paid into NPS by your employer is deducted in full, as long as it stays within the 14% cap.

The old regime has its own rebate of up to ₹12,500 when taxable income is ₹5 lakh or less, with no marginal relief. Surcharge has marginal relief in both regimes at ₹50 lakh, ₹1 crore, ₹2 crore and ₹5 crore, and the calculator shows how much it saved you on its own line.

Employer NPS: the deduction both regimes allow

Section 124(1), which replaces 80CCD(2) of the old Act, lets you deduct what your employer pays into NPS or UPS for you. It is one of the very few deductions the new regime keeps. The limit is a share of your salary, meaning basic pay plus dearness allowance: 14% if the employer is a central or state government, and 10% for any other employer, raised to 14% when you are taxed under the new regime. So a private-sector employee can shelter more in the new regime than in the old one.

Enter the contribution and your yearly basic plus DA. Anything above the cap stays taxable, and the calculator tells you when that happens. If your CTC already includes the employer's NPS, leave it inside the salary figure too: it is taxed as salary first and then deducted.

What this calculator does not cover

The calculator leaves out capital gains, lottery winnings and other income taxed at special rates, along with losses you carry forward and agricultural income. It assumes an individual resident taxpayer. The old-regime boxes take the amounts you are entitled to; the calculator applies the legal caps but cannot check the conditions behind them, such as whether your landlord's PAN is on file for an HRA claim. For the deduction question on its own, the old vs new regime calculator shows how much the old regime needs at your income.

Worked examples

Tips and tricks

How to use it well

Questions people ask

Sources

• Income Tax Department: Tax Reference Tables as per the Income-tax Act, 2025 (tax rates, rebate, surcharge, deductions allowable)
• Income Tax Department: Income & Tax Calculator (e-Filing portal), used to test the shared tax engine
• Income Tax Department: Income-tax Act, 2025 as amended by the Finance Act, 2026 (PDF)

Related calculators